Chinese investors have submitted a proposal to take over Uganda’s electricity transmission and distribution business, leaving Selestino Babungi, the managing director of Umeme and its shareholders, worried.
Rather than take the usual route of the stock exchange to buy into the utility firm, the Chinese have offered the government $3 billion, which officials consider an unsolicited bid.
Uganda unbundled its electricity subsector ahead of liberalisation in 2005 with promises of private capital to revamp flagging generation and distribution. Umeme is the only successful commercial enterprise in which Ugandans own a significant stake either directly or through proxies.
Full article: The East African