Uganda has set up an $8.6m fund to help finance new power projects. The fund, a joint project with the World Bank, is expected to help the private sector invest in electricity generation projects through loans.

The projects will include mini-hydropower projects of up to 1 MW, solar plants and other renewable energy projects to supply electricity to rural customers.

Currently, only 12 per cent of Ugandans are connected to the national grid, and the government is keen to expand coverage while at the same time ensuring industry has access to a more reliable power supply.

Specioza Kimera Ndagire, general manager of the Uganda Energy Credit Capitalisation Company (UECCC), which is managing the fund, said: “Uganda’s banking industry has not been able to meet the financing needs of the energy sector investments, which are long-term in nature.

“The UECCC will work with ten banks in the administration of loans dispensed under this fund, to offer flexible terms for borrowers with five to seven years repayment grace period.”

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