The transition to a green economy has enormous development potential. Green growth brings opportunities in the private sector for energy, sustainable natural resources and environmental protection.
As key players in private sector development, financial institutions can be instrumental in financing this transition. Despite proven potential, the financing of green investments by financial institutions is still limited due to a combination of technical obstacles (lack of regulatory frameworks, lack of local expertise, etc.) and financial obstacles (small final borrowers perceived as riskier, limited equity capital, still fragile skills within banks).
The project is part of a regional programme accredited SUNREF East Africa and promoted by AFD in Kenya, Tanzania and Uganda.
It plans to provide several Ugandan banks with a reduced-rate credit facility totalling €35 million. The financing is intended for the clients of these banks to invest in renewable energy production facilities (solar energy, biomass / biogas, mini hydroelectric power plants) as well as in energy efficiency projects.
Like other SUNREF credit lines in the region, the initiative is supported by technical assistance for project leaders and Ugandan banks. This technical assistance is led by the Kenya Association of Manufacturers (KAM) in close cooperation with the Uganda Association of Manufacturers (UMA).
- Economical: strengthening the competitiveness of companies and job creation through the optimization of energy consumption;
- Environmental: reduction in fossil energy consumption and atmospheric emissions, with an estimated reduction in CO2 emissions of 30,000 tonnes per year;
- Institutional: Better implementation of Ugandan public policies by field actors through the many local institutions involved in the project.
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