By Silvia Nyambura
Agence Française de Développement (AFD) and Diamond Trust Bank of Uganda (DTB) have today signed a credit line valued at US$ 10 million (Ushs 33.44 billion) to finance Green Energy Projects in Uganda. The credit facility has been availed to DTB for onward lending to businesses that wish to invest in renewable energy technologies projects (small hydro, biomass, biogas, solar, geothermal) as well as energy efficiency measures. The initial committed amount may be increased in the future, once DTB exhausts this line and there is viable demand for financing of green energy projects in the country.
This credit facility is one of the components of the large regional program called Sustainable Use of Natural Resources and Energy Finance (SUNREF). It aims at promoting financing of renewable energy and energy efficiency projects in East Africa through local banking system.
It also comes with a technical assistance program, funded by the Africa Infrastructure Trust Fund of the European Union that is managed by Kenya Association of Manufacturers (KAM). This will help the bank improve its knowledge on lending to and involvement in sustainable energy projects. In addition, KAM will assist the projects’ sponsors on feasibility studies and technical support.
SUNREF, on March 31st formally entered the Ugandan Market after KAM and Uganda Manufacturers Association (UMA) signed an accord to extend its program to the East African country. The Focal Point agreement between KAM and UMA allows the SUNREF to drive its day-to-day activities in Uganda.
Speaking at a Press Conference held at the Imperial Royale Hotel in Kampala this morning, DTB Uganda Managing Director Varghese Thambi said, “This is an excellent opportunity for Ugandan entities to enhance energy efficiency and alternate energy opportunities for the overall economic development of Uganda at concessionary interest rates.
