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    Uganda : Umeme ends 2024 with UGX 511 billion loss as concession ends and payout dispute continues

    2024 was a tough year for Umeme (USE:UMEM, NSE:UMME). As Uganda’s largest electricity distributor handed back its operations to the government, the company reported a UGX 511 billion loss, its worst performance in years. In 2023, Umeme had made a profit of UGX 11 billion.

    At the center of this loss is a dispute with the Ugandan government over how much Umeme should be paid for its infrastructure and investment after its 20-year concession ended in March 2025. Umeme says it is owed USD 292 million, but the government disagrees. The company now plans to take the case to international arbitration in London.

    Despite these challenges, Umeme’s operations remained strong in 2024:

    • It added 219,000 new customers, reaching 2.2 million in total.
    • Electricity demand rose by 10.8%.
    • Energy losses were reduced to 16%, the lowest level since 2005.
    • Customer satisfaction also improved, with a higher score than in 2023.

    On the financial side, revenues grew slightly, but the company had to make big accounting adjustments linked to the end of the concession and the unresolved compensation. These adjustments are the main reason for the sharp loss.

    As a result, no dividend will be paid to shareholders this year.

    Umeme says it remains committed to defending its rights and keeping shareholders informed. While the power grid is now back in government hands, the financial story is far from over.

     

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