The EU launches dedicated funding package to support renewable energy entrepreneurs committed to accelerate clean energy access in Uganda
The launch of the ElectriFI Country Window for Uganda, a tailored EUR 5 million envelope funded by the EU to invest in early-stage renewable energy companies active in the country, took place on Thursday 3 November in Kampala, at the occasion of the Renewable Energy Conference & Expo 2022.
Bridging the financing gap faced by private companies engaged in the renewable energy market is a shared priority of the European Union (EU) and the Government in Uganda. While only a quarter of the Uganda’s citizens have access to electricity; the percentage drops below 20% in rural areas. EU-funded initiatives such as ElectriFI, the Electrification Financing Initiative, contribute to this effort by reinforcing existing national initiatives, in close cooperation between the EU, the national government and the EU Delegation.
Since 2017, EDFI ElectriFI invests in rural electrification, commercial and industrial captive power, productive use of energy, and independent power producers, amongst others, by providing a flexible and innovative set of financing solutions adapted to the needs of underserved populations.
At the launch event of the Uganda Country Window in Kampala on 3 November, experts and entrepreneurs in the field gathered to advance on the topic and raise awareness about such innovative and inclusive joint public-private collaboration. The panel composed of Dr. Brian E. Isabirye, Commissioner Renewable Energy at the Ministry of Energy & Mineral Development; Caroline Nijland, Adviser at the GET.invest Finance Catalyst; Lennart De Ridder, Team Leader for infrastructure at the EU delegation in Uganda and Waringa Matindi, CEO at Village Energy, explored public-private cooperation in the field of renewable energy and the role of blended finance in de-risking the market. Participants concurred on the necessity of blending and de-risking instruments such as ElectriFI, offering small ticket sizes to allow MSMEs to scale up, while also acknowledging the needs of the financial institutions to adapt their lending capacity to the entrepreneurs’ needs. Technical assistance and support are therefore key for success. The state of Ugandan’s transportation system also led participants to focus on e-mobility solutions, considered as a crucial sector to drive the green transition in the country.
“EDFI ElectriFI is working with partners to meet urgent needs of vulnerable societies, to mitigate the effects of climate shocks and build resilience by accelerating clean energy access. The launch of the Uganda Country Window will enable renewable energy companies to scale up and step up Uganda’s efforts to mobilise renewable energy resources through private-sector funding,” added Maud Watelet, ElectriFI Senior Investment Officer at EDFI MC.
By unlocking Uganda’s economic, social and environmental development opportunities across various value chains, the Country Window will contribute to national implementation plans to reach the Sustainable Development Goals and Uganda’s Vision 2040.
Notes to Editors:
About EDFI ElectriFI
EDFI ElectriFI is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets.
EDFI ElectriFI, is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). https://www.electrifi.eu/
Mathilde Poncelet, EDFI MC: email@example.com