Equity Bank, UNOC sign deal to promote use of  clean energy

Equity Bank Uganda and the Uganda National Oil Company (UNOC) have signed a Memorandum of Understanding, to facilitate and strengthen collaboration between the two entities.

The deal sealed during the on-going 8th Annual Oil and Gas Convention at Kampala Serena Hotel will see collaboration in the areas of financing and enterprise development specifically for Micro, Small and Medium Enterprises (MSMEs), clean energy use and environmental conservation sectors.

Also, financing will be supplied in support of farmers, education and training for young people and more affordable and accessible health systems for all.

“The opportunity for Ugandans and the entire region to benefit from the wealth creation possible around the development of the oil and gas sector and all of its support sectors is significant. Wealth creation is the quickest tool to lift our people from poverty and the needs of the oil and gas sector will serve as this vehicle,” said James Mwangi, the CEO and Managing Director of Equity Group Holdings Plc Group said.

“This MOU brings our two organisations together as promoters of development of the oil industry in Uganda, representing national interest, the government and the people of Uganda and of a regional financial group that has the capability and knowledge to allow citizens to participate in economic activities and to ensure that the oil industry and development is fully integrated into the economy so that there can be a fairer distribution of income and the benefit of the oil industry development.”

He noted that it when the entire ecosystem is funded with a revolving that supports the entire oil and gas sector that the problem of financial inequity will be solved.

“One of the challenges we have discovered as the local companies is the aspect of financing and that is why we are partnering with reputable organisations like Equity Group to bring financial products that are tailored for the SMEs to participate in the sector. We bring the opportunities; we ride on the back of financial institutions like Equity so that we support the local companies to participate,” said Proscovia Nabbanja, the UNOC CEO.

She applauded Equity for using their model in supporting other sectors of the economy to the oil and gas sector.

According to the MOU, through programs run by the Equity Group Foundation, the parties shall work to scale up financial inclusion and shared prosperity through financial literacy to the population in the oil region, especially women and youth, support for farmers providing food for the ecosystem, health services for supply chain workers, and educational scholarships and leadership opportunities for young scholars.

It will also see the parties provide training in financial education and business management skills to facilitate access to finance for the MSMEs and the matchmaking of joint venture partnerships for players in the oil and gas value chains to enhance collaboration and greater capacity.

Clean energy

In the areas of clean energy and environmental conservation, Equity will work with UNOC to implement carbon capture programs.

This will be achieved through carbon offset initiatives that will allow investments in environmental projects that will balance UNOC’s own carbon footprint.

Also under the program, initiatives such as support to households and MSMEs to adopt cleaner sources of energy and modern technologies through training and finance (renewable energy) shall be considered.

There will also be support to players within the commercial and industrial sectors to adopt cleaner and more efficient production processes (energy efficiency) and waste management projects aimed at capturing methane from landfill sites and from agricultural activities (waste to energy).

The collaborations will also see the parties support farmers in the oil regions to adopt climate-smart agriculture to reduce GHG from agricultural activities.