Microfinancing the uptake of modern cookstoves in Uganda

Background

In Uganda, the microfinancing approach has not yet been used to promote access to modern energy services.  Successful work has already been done by the project implementer in Kenya and this project replicates the lessons learned there in Kenya to Uganda.

Purpose

To promote the uptake of solar, biogas and institutional improved cook-stoves (ICS) technologies through building the capacity of microfinance institutions (MFIs) to support modern energy suppliers and consumers.

Main Activities

  • Mobilise at least 3 MFIs
  • Develop energy loan products and services
  • Train 20 marketing and loan officers
  • Research and produce a report on expenditure and consumption potential
  • Create a modern energy supply value chain, with 20 energy enterprises created through the loans, at least 100 potential energy entrepreneurs aware of energy financing schemes, and at least 5000 consumers receiving energy loans.

Expected Impact

  • Solar, biogas and institutional improved cook-stoves (ICS) technologies are brought into the mainstream by MFIs
  • SMEs and consumers have access to financing for modern energy cookstoves
  • Creation of more energy businesses and market expansion for the energy products and services
  • Reduced disease prevalence from indoor air pollution, sustainable businesses  and environmental performance
  • Rural and peri-urban communities have easy access to modern energy services and products.
  • CO2 emissions reduced and effects of climate change mitigated
  • Avoided deforestation accrued from the introduction and use of the improved cook stoves
  • Catalyse policy influence on RE and EE
     
Programme sector: 

RE & EE (Business&Finance)

Stage of project: 

Completed

Location: 

TZ/Tanzania, UG/Uganda (Rwanda)

Duration: 

2009 - 2011

Budget: 

€ 100,000

Implementing agency: 

IT Power Eastern Africa

REEEP grant funded by:

Government of Ireland