BMI View: Our core views and forecasts for Uganda remain virtually unchanged this quarter. The country’s power infrastructure has been plagued by inefficiencies and under-investment for years. This, coupled with limited diversification of the power mix and low electrification rates, exposes the market and the wider economy to shocks and risks. Regulatory changes, coupled with more cost-reflective tariffs, would certainly play a role in incentivising investment and putting the sector on a more sustainable path. However, the balance is a difficult one to strike; as industry associations fear that hikes recently proposed by Uganda’s Electricity Regulatory Authority will hinder competitiveness. …
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