Housing Finance Bank, UECCC Launch Shs 5 Billion Renewable Facility

Housing Finance Bank and the Uganda Energy Credit Capitalization Company (UECCC) have today launched a groundbreaking Shs 5 billion credit facility to accelerate the adoption of renewable energy solutions in Uganda.

This initiative aims to increase access to clean energy technologies such as solar power, clean cooking solutions, and productive energy uses, including water pumps for irrigation.

The facility is expected to play a crucial role in Uganda’s transition to sustainable energy, in alignment with Vision 2040 and the Sustainable Development Goals (SDGs).

The partnership between Housing Finance Bank and UECCC represents a significant boost to Uganda’s energy sector, particularly in financing businesses, households, and off-grid communities.

Uganda has made strides in renewable energy adoption, with solar energy capacity growing steadily. According to the Ministry of Energy and Mineral Development, Uganda’s installed solar capacity increased to 50 MW in 2023, contributing to the national grid and off-grid electrification efforts.

However, despite these advancements, Uganda still lags behind regional counterparts in renewable energy adoption. Kenya, for instance, leads East Africa in renewable energy integration, with over 90% of its electricity coming from clean sources, including geothermal, hydro, and solar.

Tanzania has also made significant progress, with renewable energy contributing nearly 40% of its energy mix, driven by hydro and solar power investments.

Michael K. Mugabi, Managing Director, Housing Finance Bank, emphasized the institution’s commitment to green financing: “As Housing Finance Bank, we believe that green financing is not just a business opportunity, but a responsibility.

By providing financial support for these innovative energy solutions, we are transforming lives and contributing to Uganda’s sustainable development goals.”

Roy Nyamutale Baguma, Managing Director, UECCC, highlighted the impact of the initiative: “This Shs 5 billion credit facility is a critical step in enabling businesses and households to transition to clean energy technologies. Through this partnership, we aim to reduce reliance on traditional energy sources, mitigate climate change, and expand energy access.”

While Uganda has significant hydropower resources, its reliance on biomass for cooking and limited grid connectivity remain challenges.

The adoption of off-grid solar solutions has increased, but the country still has a long way to go compared to Kenya, which has a well-developed policy framework supporting renewable energy investments.

Rwanda has also made remarkable progress, with nearly 75% of households having access to electricity, compared to Uganda’s 57% as of 2023.

This new credit facility is expected to bridge some of these gaps by making renewable energy financing more accessible to businesses and communities, promoting economic growth, and reducing Uganda’s carbon footprint.

The Shs 5 billion renewable energy credit facility by Housing Finance Bank and UECCC is a bold step towards enhancing Uganda’s clean energy transition.

By learning from regional successes and leveraging innovative financing mechanisms, Uganda can strengthen its renewable energy sector and improve electrification rates.

This initiative is not just about energy access; it is about building a sustainable future for Ugandans and contributing to global climate change mitigation efforts.