Why merging Uganda’s electricity sector agencies is a bad idea

When multiple electricity companies compete for consumers, there is pressure to keep costs low and to improve service quality. GettyImages

Early in 2021, the government of Uganda approved a two-year plan to streamline state-run agencies for greater efficiency. The first phase of the merger targeted 77 agencies under 18 ministries. By the time parliament put the programme on hold months later, 69 of these agencies had been merged.

Parliament stepped in because the government sidestepped the law and could face court challenges. But the programme is still on the cards once key issues are resolved. These include amendments to laws governing energy agencies and provision of financial compensation to affected parties and staff.