Uganda signs $400 million Green Hydrogen Deal.

Uganda has signed a development agreement with the Westgass International and Industrial Promotion Services (IPS) for a $400 million hydrogen fertiliser plant.

Why is this important? In 2021, Uganda imported $37.94 million worth of fertiliser, according to the United Nations COMTRADE database, which has increased over the years. The strategically located plant in Karuma, Kiryandogo district, will leverage the Karuma Hydropower Plant's 600 megawatts and help reduce the country's dependence on imported fertiliser. Africa's best hope of solving its energy problems is to invest in producing green hydrogen, which will lower the cost of transmitting electricity and clean water. It can also trigger economic transformation across major fertilisers and steel manufacturing sectors.

The bottom line: Uganda's economy has experienced its fair share of uncertainty; its GDP fell to 4.6 per cent in 2023 but is forecasted to grow to 5.8 per cent in 2024 as the country continues its economic reforms. The role of the green hydrogen plant will positively impact key areas of the economy, especially agriculture.