Uganda: Energy Drives Real Estate Growth
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Kampala — PROXIMITY to the electricity grid greatly influences the rate of success of many real estate investors.
People who buy properties with an intention of building homes, shun estates that lack electricity supply lines. Reason? Extending a power supply line, even for as short a distance as one kilometre, costs millions of shillings.
The Government had promised to connect private real estates to water, road network and electricity, but this has not yet happened, which has made investors who had purchased land in remote areas incur high costs.
Although hydro-electric power is the cheapest source of energy in the average Ugandan home, other renewable energy resources are gaining prominence.
However, the combined contribution of renewable sources of energy to the total energy consumed in the country is estimated at a mere 2%.
