Finance Trust Bank (FTB) has ventured into the energy sector by collaborating with Uganda Energy Credit Capitalization Company (UECCC) to provide solar energy loans.Uganda’s commercial bank through providing the solar energy loans worth a total of $250, 000 seeks to assist financially disadvantaged clients gain access to electricity, East African Business Week reported.
Through this arrangement, called Solar Yange (my solar), bank customers will be able to purchase solar facilities for either homes or commercial establishments through the loan from FTB.
[quote]The solar energy loan will be implemented in two districts of Lwengo and Gomba all in the central region of Uganda.
Solar energy loans
During the Solar Yange launch, FTB managing director Dennis Kakeeto highlighted the benefits of this arrangement.
He said: “The Solar Yange loan product will not only provide a clean source of energy to our clients. The product is environmentally friendly, because the majority of Ugandans use biofuels which are very dangerous to people's lives due to the smoke emitted.
“FTB is committed to reducing poverty, protecting the planet by enabling its customer’s access solar equipments which doesn't harm the environment.”
According to the media, apart from the FTB, UECCC has also partnered with other banks in the country, including Centenary Rural Development Bank, Pride Microfinance Bank and Finance Trust Bank to expand access to renewable energies.
Access to clean energy
Promoting the loan offering, Kakeeto said it would benefit both clients and the bank, adding that the loan is the second of its kind to be implemented by the bank after the financial institution secured a concession loan over two years ago from UECCC worth $500,000.
UECCC managing director Specioza Kimera Nadagire said the organisation is committed to ensuring that Ugandans get access to clean energy.
Nadagire said: “UECCC will continue working with the private sector through supporting them with technical and financial assistance to see that they participate in the energy sector.
“We will be providing cheap loans to the members of the public to access lean energy accessories like solar energy equipment like what FTB is now offering on the market.”
UECCC is a government agency under the ministry of energy and mineral development, with a mandate to assist provide a reliable framework for pooling resources from the government, interested investors and development partners and channel these resources towards renewable energy projects in the country.