Households, Educational institutions and Commercial enterprises are set to benefit from a new clean energy financing product from Equity Bank Uganda that will enable them acquire clean energy technologies for lighting, cooking, and practicing climate smart agriculture.
The affordable financing facility – Equi Green loan with support from the Uganda Energy Credit Capitalization Company (UECCC), was launched on Wednesday in Kiboga district with the goal of enabling poor and middle-income households to access clean energy for lighting, cooking and practicing climate smart agriculture.
Equity customers can buy improved cook stoves, solar lighting systems, biomass systems, irrigation systems and water storage tanks through affordable, simplified loan products starting from as low as Shs200,000 payable in 6 or 12 months. The clean energy loan is available at all Equity Bank branches and a customer can pick up the product at the nearest Equi Green loan appointed agent.
Speaking at the launch, Minister of Energy and Mineral Development Ruth Nankabirwa commended Equity Bank for partnering with UECCC to provide financial support to the people through facilitating access to clean energy thereby helping to avert the negative effects of climate change.
She said that clean and sustainable energy has emerged as a focal point in developing countries and Uganda is no exception.
“This is due to the mounting pressure to preserve the environment by increasing access to renewable energy and energy efficiency,” she said.
Nankabirwa said the Government is aware that utilization of biomass and fossil-based fuels leads to the deterioration in people’s health and productivity while having undesired and sometimes non-reversible damage to the natural environment.
“My Ministry of Energy and Mineral Development is cognizant of this fact and the important role clean energy plays in development.”
“Priorities for the medium term have been defined in view of the NDP III program objective for sustainable energy development programme under the Ministry as, to increase access to utilization of electricity, to increase electricity Generation, to increase adoption and use of clean energy; and to promote utilization of energy efficient practices and technologies,” she added.
The Minister says renewable energy is key to unlocking economic transformation, with more than 87% of the electricity generated from resources such as hydro power, solar and biomass, and 90% of cooking energy demand contributed by solid biomass, arguing that even with such heavy reliance on renewable energy, Uganda has not fully exploited this resource.
She revealed that currently, the country’s electrification rate is estimated at 57% of which, 19% is on grid and 38% is off grid mainly through solar home systems, saying that the government plans to address this challenge by increasing awareness of the benefits of clean energy for cooking, lighting, and practicing climate smart agriculture.
How Ecobank is Betting on Inclusive, Tech-Powered Learning in UgandaSpecioza Kimera Ndagire, the Managing Director of UECCC said, “The aim of the Product is to enable Ugandans access electricity in off grid areas by addressing the affordability barrier arising from the up-front cost of solar systems.
This is in line with the National Development Plan (NDPIII) Sustainable Energy Program objectives of increasing access and utilization of electricity, increasing adoption and use of clean energy and promotion of utilization of energy efficient practices and technologies.”
“Our new partnership with Equity Bank Uganda will enable us reach more people through their countrywide customer network,” she added.
Equity Bank Managing Director, Samuel Kirubi said the Bank will facilitate access to clean energy through affordable financing to purchase innovative clean energy technologies that impact people and the environment.
“Tapping into the power of the sun and the environment to provide lighting, electronic charging systems and cooking solutions makes a real difference in how communities sustain themselves. Families can re-allocate funds saved from the adoption of renewable energy technologies such as solar panels and improved cook stoves to other basic needs such as education or healthcare.”
The renewable technology systems that can be acquired under this product include solar home systems such as lighting, electronic charging, Televisions, and clean cooking systems for schools and homes. Also, water tanks, and irrigation systems.
The Equi-Green loan is implemented under the Equity Bank Energy and Environment Pillar launched in November 2021.
Equity Bank Uganda, under its Energy and Environment pillar will continue to play a leading role in climate change mitigation and adaption interventions aimed at reducing emissions and creating resilience in communities, institutions, and industries. The Bank has made available funding in the areas of renewable energy, energy efficiency, water, climate smart agriculture, circular economy and waste management, green buildings, transportation and afforestation.
In addition to funding, Equity will also address these challenges by increasing awareness of the benefits of a greener economy and encouraging SME’s to adopt cleaner production processes and operations that protect the planet.
