AFD supports Green Financing in Uganda
AFD and Diamond Bank Uganda signed an agreement to open a $10 million credit line to finance energy efficiency and renewable energy projects (small hydro, biomass, geothermal, solar, biogas).
Monday the 11th of July, in the presence of H.E. Sophie Makame, Ambassador of France to Uganda, a contract was signed between the AFD (French Development Agency) and Diamond Trust Bank Uganda (DTB-U), respectively represented by Yves Boudot, the regional director for AFD in East Africa and Varghese Thambi, managing director of DTB-U.
An employee of Lean Energy Service supplying a biomass boiler with briquettes.
Through this agreement, a $10 million credit line has been created to finance energy projects such as energy efficiency or renewable energies (small hydro, biomass, geothermal, solar, biogas). Once their technical and financial viability verified, loans will be granted to private companies and investors. Technical assistance is made available to banks to enable the technical evaluation of the projects submitted to them. The assessment procedure is fully-funded by France and the EU-Africa Infrastructure Trust Fund set up by the European Commission.
This partnership with DTB-U is part of the SUNREF label (Sustainable Use of Natural Resources and Energy Finance) launched in 2006 by AFD. SUNREF aims to encourage the private sector of developing countries, including commercial banks to invest in green energy and sustainable development. By offering funding opportunities, AFD wishes to encourage and support the energy transition. "This is a real opportunity for Ugandans to enhance their energy efficiency thanks to competitive interest rates," said Varghese Thambi from DTB-U.
In addition, SUNREF is also a tool for regional integration in East Africa: the various projects funded by the label in Kenya, Tanzania and Uganda have been designed to be one day connected to the same network. According to Yves Boudot, the technical assistance provided by SUNREF in East Africa is decisive: it helps the region to diversify its energy mix while providing ingenious solutions that are technically, financially and economically viable .
Since 2006, 42 projects; 70 banks and 30 countries have benefited from the SUNREF program.