Power utility company Umeme Limited has come out to reassure its investors about its business ongoings in Uganda.
This follows media reports that the utility firm is set to exit Uganda in 2025, which reports Umeme notes are likely to impact the trading on its shares or likely have a bearing on investment decisions.
In a statement, Umeme indeed affirms that its concession expires in March 2025, and the position remains unchanged.
“As disclosed in its Prospectus at the Initial Public Offering, subsequent Annual Reports and public disclosures, Umeme holds a 20-year Concession from the Government of Uganda, whose natural term expires on the 30th day of March, 2025. To date, this position remains unchanged.
Umeme adds: “The Company shall, in accordance with the Listing Rules governing it, promptly issue a Public Notice once written communication is received from the Government on the future of the Umeme Concession.”
“The Company remains committed to performing its obligations as per the existing Concession and will continue to operate and maintain the electricity distribution system in line with prudent utility practice to ensure continued service delivery,” Umeme says in a November 9, 2022 statement.
