Umeme Trading Suspended for 30 More Days as Buyout Dispute Escalates
The Uganda Securities Exchange (USE) has extended its suspension of Umeme Limited’s stock trading by another 30 days, deepening uncertainty in the aftermath of the company’s expired 20-year electricity distribution concession.
The extension, effective until May 14, 2025, follows Umeme’s formal dispute with the Government of Uganda over the final buyout valuation for its unrecovered infrastructure investments. The company officially served its dispute notice to the Ministry of Finance on April 11, 2025.
In a statement, the USE noted that the prolonged suspension is meant to create space for a good faith negotiation between the two parties. Should that fail, the issue will be escalated to international arbitration in London, as per the terms of the Concession Agreement.
“The move protects investors from market volatility while talks are underway,” the Exchange stated.
At the heart of the standoff is the gap between Umeme’s claimed buyout figure of USD 234 million and the USD 118.4 million recommended by the Auditor General and paid by the government. Umeme accepted the amount “without prejudice” but triggered a formal dispute process.
The USE emphasized that Umeme is expected to continue complying with all listing obligations and to provide progress updates to the Exchange during the suspension.
The outcome of the negotiation—or arbitration—could have significant implications not just for Umeme shareholders, but also for the future of public-private partnerships in Uganda’s power sector.
This marks a pivotal moment in Uganda’s energy landscape as UEDCL (Uganda Electricity Distribution Company Ltd) steps in to replace Umeme, following the concession’s expiry on February 28, 2025.
Investors now await clarity, as this dispute could reshape investor confidence in Uganda’s infrastructure sector for years to come.https://www.youtube.com/watch?v=yCE3eIXc4Q0
