Reliable Local Partner for Renewable-Energy Projects

The Uganda Energy Credit Capitalisation Company (UECCC), founded three years ago, is in place to facilitate investments in Uganda‘s high-potential renewable energy sector. The General Manager, Specioza Kimera Ndagire, explains, “Uganda’s financial market is dominated by commercial banks with short-term funding and yet investments in renewable energy require long-term project financing, which is not readily available in the local market. UECCC was set up to work with various partners including development partners and financial institutions to provide new financing options for private sector-led energy projects.”

The available financing options include a Liquidity Guarantee for Participating Financing Institutions to extend loan tenures and a Partial Risk Guarantee for cost-overruns during project implementation.

The company also provides Transaction Advisory Services to kick-start private-investment projects. Working with its development partners including World Bank and KfW, UECCC offers technical assistance to structure renewable energy projects. UECCC also facilitates linkages with venture-capitalists and equity-providers to help boost local investments in renewable energy.

Foreign investors in renewable energy will find significant growth potential in Uganda. Specioza Kimera Ndagire says that historically, most renewable energy investments have focused on hydropower, but other renewable sources such as solar and biogas also present investment opportunities.

Looking to the future, UECCC aims to continue to build capacity in Uganda’s renewable energy sector. Specioza Kimera Ndagire explains, “Our mandate is to provide a reliable framework for pooling resources from Government, Investors and Development Partners and to channel the same to viable renewable energy projects.” To this end, the ORIO Infrastructure Fund of the Netherlands is to contribute funding towards the development of up to ten hydropower projects for rural electrification.