Uganda Securities Exchange added another 30 days to Umeme Limited's trading suspension. The halt came as the power company disputes what the government owes after their 20-year contract ended. Trading first stopped March 31 for two weeks but will continue until May 14. Umeme formally notified finance officials about the disagreement on April 11. The exchange wants to protect investors from market swings during this uncertain period.
Money remains the central issue between both sides. Umeme claims the government should pay $234 million for equipment investments. Government auditors calculated only $118 million, which officials had already paid. Umeme took the money but disagreed with the amount. Both parties have 30 days to find common ground through talks. The case heads to London for arbitration if negotiations fail. The electric distributor must keep following all listing rules during the suspension.
Ugandan power distribution has entered a new phase. The national electricity company took control when Umeme's contract expired on February 28. Investors carefully watch these developments. The outcome affects shareholder value and impacts how private companies view future partnerships with the Ugandan government. The resolution might change electricity service across the country.
Money remains the central issue between both sides. Umeme claims the government should pay $234 million for equipment investments. Government auditors calculated only $118 million, which officials had already paid. Umeme took the money but disagreed with the amount. Both parties have 30 days to find common ground through talks. The case heads to London for arbitration if negotiations fail. The electric distributor must keep following all listing rules during the suspension.
Ugandan power distribution has entered a new phase. The national electricity company took control when Umeme's contract expired on February 28. Investors carefully watch these developments. The outcome affects shareholder value and impacts how private companies view future partnerships with the Ugandan government. The resolution might change electricity service across the country.
