Equity Bank Uganda is positioning itself at the center of Uganda’s growing clean energy transition, unveiling an aggressive financing strategy aimed at making solar technologies, clean cooking systems, and renewable energy solutions more affordable for households, schools, farmers, and small businesses across the country.
As Uganda grapples with rising energy costs, unreliable electricity access, and growing environmental pressure from charcoal and firewood dependence, the bank says affordable financing and results-based partnerships could become the game changer that finally brings clean energy within reach of ordinary Ugandans.
Speaking during an interview on renewable energy financing and Results-Based Financing (RBF), Equity Bank Energy, Environment and Climate Change Pillar Head-Virginia Semakula said the biggest obstacle preventing many Ugandans from adopting clean energy technologies remains the high upfront cost of installation.
“Many Ugandans want solar systems, clean cookstoves, and renewable energy solutions, but the initial costs remain too high for households and small businesses,” Semakula notes.
The bank noted that while government tax waivers on solar products have helped improve access, financing structures still need to evolve to support wider adoption.
Traditional short-term lending models, particularly 12-month loan periods, are often unsuitable for renewable energy investments, which require longer repayment timelines to become affordable.
“We need more flexible financing with lower interest rates and longer repayment periods, especially for solar technologies. A 24-month repayment structure works much better for many customers,” Semakula explained.
Equity Bank has since rolled out specialized green financing products, including Equi-Green Loans and Green Enterprise Financing, targeting households, SMEs, agribusinesses, schools, and companies investing in renewable energy solutions.
Under the model, the bank works directly with renewable energy suppliers who install the technologies while Equity provides financing support to end users.
The lender says the approach reduces barriers to access while helping customers transition away from expensive and environmentally harmful energy sources such as charcoal, kerosene, and firewood.
