First phase will support the Uganda-Tanzania interconnector and strengthen regional institutions, advancing Mission 300
WASHINGTON, June 18, 2026 - Eastern Africa stands to gain more affordable, reliable, and cleaner electricity as countries strengthen cross-border power trade and regional energy cooperation. To help deliver this transformation, the World Bank Group Board has approved a $1.6 billion financing package for the Regional Energy Transmission, Trade & Decarbonization program for Eastern Africa (RETRADE-EA), a 10-year initiative to accelerate regional power integration, expand energy access, and unlock economic opportunity.
RETRADE-EA will finance both infrastructure and institutional capacity development needed to enable efficient regional power trade. The program will strengthen cross-border connectivity, improve system resilience, and facilitate the integration of countries that remain outside the regional grid, including Somalia. It will also support the launch of the Eastern Africa Power Pool (EAPP) Day-Ahead Market, strengthen regional system planning and operations, improve governance and regulatory harmonization, and promote greater private sector participation, including through Independent Transmission Projects.
"A well-integrated regional energy market is one of the most powerful catalysts for economic growth and job creation in Eastern Africa," said Ndiamé Diop, Regional Vice President for Eastern and Southern Africa. "RETRADE will help countries trade power across borders, lowering costs and improving reliability for businesses and households. In doing so, it delivers exactly what Mission 300 is designed for: stronger energy systems that provide access at scale, drive job creation, and sharpen Africa's competitiveness."
The first phase of the program includes the Uganda-Tanzania Interconnector Project (UTIP), supported by $250 million in concessional finance from the International Development Association for Uganda. The project will finance the construction of a new high-voltage electricity transmission line connecting Uganda to Tanzania, creating a critical connection between Uganda's surplus clean energy resources and regional electricity markets.
The first phase of the RETRADE-EA program also includes a $10 million IDA grant and a $3.5 million grant from the Energy Sector Management Assistance Program (ESMAP) to the Eastern Africa Power Pool (EAPP) for the Regional Power Trade and Market Project (RTMP). The project will strengthen regional market coordination and institutional capacity, resulting in more than 5,000 gigawatt-hours of cross-border electricity trade annually by 2031, greater market integration between the EAPP and the South African Power Pool, and enhanced energy security and affordability for member states.
"By completing the remaining regional interconnections and operationalizing the Eastern Africa Power Pool Day-Ahead Market, RETRADE-EA will help realize a fully operational regional power pool," said James Karari Wahogo, General Secretary of EAPP. "Together, these measures will enable more efficient electricity trade, lower system costs, and strengthen regional energy security."
Uganda currently generates more electricity than it consumes domestically, with significant surplus hydropower going underutilized. The UTIP project addresses this directly by financing the construction of approximately 260 kilometers of 400 kilovolt double-circuit transmission line running from Wobulenzi to Masaka to Mutukula on the Uganda-Tanzania border. The new line will create a transfer capacity of 1,000 megawatts, establishing a critical physical link between Uganda and the regional grid.
"Uganda has abundant clean energy, and this project turns that advantage into real economic opportunity," said Ndiamé Diop, Regional Vice President for Eastern and Southern Africa. "By connecting Uganda to regional electricity markets, we are helping the country earn more from the power it already produces, while delivering cleaner, more reliable electricity to millions of people. This is infrastructure that works for Uganda's future and that of the region."
By the UTIP project's target end-date of 2031, at least 452 gigawatt-hours of electricity are expected to be traded between Uganda and Tanzania annually. Across the wider Eastern Africa Power Pool, the shift from expensive, polluting thermal generation to Uganda's clean hydropower is projected to avoid 25.8 million metric tons of CO2 emissions - a meaningful contribution to regional decarbonization.
