Uganda-South Sudan Energy Sector Interdependency: The Social and Economic Implications of the Karuma Hydroelectricity on South Sudan Energy Market Demands
Deng Duot Bior-Barr is a South Sudanese PhD law student at the University of Dundee in Scotland, UK.
By Deng Duot Bior-Barr, Dundee, Scotland
Wednesday, 15 January 2025 (PW) — Uganda and South Sudan are sisterly countries that enjoy social and economic ties. More importantly, in agricultural, food security, social, and economic sectors, particularly in the energy sector. Currently, the Karuma Hydroelectric Power Project, with a capacity of 600 MW and situated in Kiryandongo District, Uganda, has considerable social and economic ramifications for both Uganda and South Sudan.
The Karuma Hydroelectric Energy’s social and economic implications benefit the two countries and could be extended across various areas, encompassing energy, commerce, and regional advancement. From the analytical standpoint, the social and economic ramifications of Karuma Hydroelectricity on South Sudan’s market and requirements are not only augmented by electricity for the need of provision and regional energy commerce; nonetheless, the Uganda Electricity Transmission Company Limited (UETCL), Umeme, the largest national distributor, should also take advantage of the energy supply in South Sudan, which could be a win-win for both countries.
According to the World Bank in 2024 on South Sudan—Energy Sector Access and Institutional Strengthening Project (ASSIST) Implementation Support Review, South Sudan is experiencing considerable electrical shortages, with nationwide access to electricity under 10%. Diesel-powered generators are the principal energy source, which is costly and unsustainable. On the other hand, as a regional power exporter, Uganda has a Karuma that augments Uganda’s ability to satisfy domestic electricity requirements and export excess power.
Similarly, Dina Ahmed Mohamed Ghandour has argued that South Sudan struggles with electrical power supply, but Uganda does not. Therefore, this situation could benefit both countries equally. It could establish Uganda as a significant participant in South Sudan’s energy sector and decrease the expenses associated with electricity imports for South Sudan. It could also create and allow transnational grid interconnection and collaboration on infrastructure, including cross-border transmission lines, to establish a steady electricity supply for South Sudan, facilitating industrialisation and urban development.
Furthermore, it will create the much-needed economic prospects for both countries to increase industrial expansion, facilitating industrialisation and social and economic power. This is the focus of the Sustainable Development Goals (SDG 7), which is to provide everyone with affordable, reliable, and modern energy.
It will bolster South Sudan’s emerging sectors, including manufacturing, mining, and agricultural processing. It will foster economic diversification beyond its reliance on oil while enabling Ugandans to export electricity and industrial products. Enhancing Uganda’s industries will facilitate the augmented production of commodities for export to South Sudan, including construction materials, food products, and textiles.
Also, it will create a generational employment enterprise that enables the expansion of energy-dependent sectors in both countries by supporting employment sectors such as construction, logistics, and telecommunications. Necessitating a dependable electricity supply and creating access to economic energy can diminish operational expenses, entice overseas investors, and encourage Trade Along Transport Corridors to enhance power supply in both countries and bolster trade centres such as Gulu and Elegu.
Promoting the transit of products into the Northern Corridor and connecting Kampala and Juba will see substantial advantages by creating and encouraging the advancement of renewable energy infrastructure diversification in both countries of the energy portfolio as part of the Eastern African countries.
Both can partner to establish renewable energy initiatives, including modest hydroelectric facilities, solar energy, and wind power. Anbumozhi et al. argued that the cross-border integration of renewable energy systems and the cross-border energy exchange, propelled by renewable sources such as hydropower, enable countries to diminish their dependence on fossil fuels, reinforcing their climate obligations.
Nonetheless, this initiative encourages regional integration and the commercial implementation of regional Frameworks. It facilitates regional energy integration via initiatives like Karuma, which corresponds with the East African Community (EAC) objectives for energy security and collective growth.
It will also enhance trade volume and dependable electricity supply, diminish logistical obstacles, and augment trade quantities between Uganda and South Sudan, particularly in agriculture, construction, and services. Although issues remain, the initiative possesses significant promise; nonetheless, problems remain.
The infrastructure development in both countries requires substantial investments in grid infrastructure and distribution networks to use imported electricity effectively. The political and security conditions in South Sudan may impact the dependability of cross-border energy commerce. On the other hand, regulatory and financial obstacles and the alignment of regulations and funding structures for energy trading must be resolved to guarantee sustainability.
Nevertheless, the social and economic implications of the Karuma hydroelectric power present significant economic prospects for both countries. However, Uganda and South Sudan should tackle severe energy deficiencies, foster industrial development, and enhance regional commerce. The social and economic implications of the Karuma hydroelectric power are entirely provided, and attaining these advantages is contingent upon resolving infrastructure, security, and regulatory difficulties. Joint initiatives between the two nations and assistance from regional and international entities will be essential in optimising the economic prospects of this energy partnership.
The author, Deng D’Duot Bior-Barr, is a South Sudanese PhD Candidate at the Center for Energy, University of Dundee, Scotland. He can be reached via his email address: John Deng Duot Bior-bar <dduotdit@gmail.com>
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