|Type||Public Utility: USE: UMEME|
|Key people||Patrick Bitature
|Revenue||Pretax: US$44.6 million (UGX:115 billion) (2013)|
|Total assets||US$345 million (UGX:889 billion) (2013)|
Umeme is an energy distribution network company in Uganda. The shares of the stock of the company are listed on the Uganda Securities Exchange (USE) and are cross listed on the Nairobi Stock Exchange (NSE).
Umeme was formed in 2004 when the Government of Uganda sold Uganda Electricity Distribution Company Limited (UEDCL) to a consortium belonging to Globeleq (56%), a subsidiary of the Commonwealth Development Corporation (CDC) of the United Kingdom and Eskom (44%), the electric generating company of South Africa. The transfer of assets did not take place until 1 March 2005. During 2006, the consortium formed by Globeleq and Eskom was restructured and Globeleq became the sole owner of Umeme. As a result of internal restructuring within CDC, Actis Capital acquired ownership of the assets previously owned by Globeleq, thereby making Umeme a 100% subsidiary of Actis Capital. In May 2010, Umeme's communications director Charlotte Kemigyisha wrote an article in the Daily Monitor newspaper, calling for the execution of those convicted of electricity theft.
Umeme is the largest energy distribution network company in Uganda, by customer numbers, area of coverage and by assets. As of December 2013[update], the company's total assets were valued at approximately US$345 million (UGX:889 billion), with shareholder's equity of approximately US$86.3 million (UGX:223.5 billion).
In December 2010, Umeme announced plans to invest US$32 million during 2011, in new substations, improvements in grid connectivity and the introduction of pre-payment systems. In November 2013, the company announced that it had secured loans totaling US$190 million from the International Finance Corporation, Standard Chartered Bank and Stanbic Bank to fund grid expansion and reduce energy losses.
Prior to October 2012, Umeme was wholly owned by Actis Capital, a subsidiary of the Commonwealth Development Corporation (CDC) of the United Kingdom. CDC is a UK government-owned company, based in the United Kingdom, with investment assets mainly in the emerging markets of Africa, Asia and Latin America, but with its main emphasis in sub-Saharan Africa and South Asia. It has an asset base of US$4 billion, of which approximately 8% is currently in the energy sector. Umeme is its first investment in the distribution end of the power sector but CDC is actively pursuing acquisitions seeking to increase its investments in the emerging markets.
On 15 October 2012, Umeme became a listed company on the Uganda Securities Exchange (USE). A total of 622,380,000 shares, representing approximately 38% of its issued share capital, became listed on the Ugandan bourse in an Initial Public Offering (IPO). The shares of the company started trading on the USE on 30 November 2012. Umeme stock shares were cross-listed on the Nairobi Stock Exchange (NSE), on 14 December 2012. The company expects to use the proceeds from the IPO, estimated at about US$68 million (UGX:170 billion), to upgrade the distribution network, establish pre-paid metering and reduce energy distribution losses.