AFD, DTB Uganda Sign $10m Credit Line for Green Energy Projects

DTB Uganda MD, Varghese Thambi and AFD Regional Director for East Africa Mr Yves Boudot display copies of the credit line documentation after signing

Agence Française de Développement (AFD) and Diamond Trust Bank of Uganda (DTB-U) have Monday signed a credit line valued at 10 Million Dollars (approximately UGX33.44 Billion) to finance Green Energy Projects in Uganda.

AFD was represented by the Director East Africa Regional Office Mr Yves Boudot, more about while DTB was represented by the Managing Director, dosage Mr Varghese Thambi. The ceremony was also witnessed by the French Ambassador to Uganda, H.E. Sophie Makame.

The credit line has been availed to DTB for onward lending to businesses that wish to invest in renewable energy technologies projects (small hydro, biomass, biogas, solar, geothermal) as well as energy efficiency measures. The committed amount of US$ 10 million may be increased in the future, once DTB exhausts this line and there is viable demand for financing of Green Energy Projects in Uganda.

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The Green Energy Line of Credit which is one of the components of the large regional program called “SUNREF: Sustainable Use of Natural Resources and Energy Finance” in order to promote financing of renewable energy & energy efficiency projects in East Africa through local banking system.

The credit line also comes with a technical assistance program, funded by the Africa Infrastructure Trust Fund of the European Union that is managed by Kenya Association of Manufacturers (KAM). This will help the bank improve its knowledge on lending to and involvement in sustainable energy projects.

In addition, Kenya Association of Manufactures will assist the projects sponsors on feasibility studies and technical support. SUNREF, on March 31st formally entered the Uganda Market after the Kenya Association of Manufacturers and Uganda Manufacturers Association (UMA) signed an accord to extend its program to the East African country. The Focal Point agreement between KAM and UMA allows the SUNREF East Africa program to have a focal point organization to drive its day-to-day activities in Uganda.

“This technical and financial offer is therefore particularly important to bring additional solutions to achieve the diversification of energy resources in the East African region and help the region to move towards sustainable energy solutions that are technically, economically and financially viable” stated Mr Yves Boudot, AFD regional director .

France, through AFD, is a key partner of Uganda in the energy sector and intervenes in all sub-sectors, i.e. generation, transmission and distribution. This additional programme increases its commitment in the energy sector and supports Vision 2040.

DTB Uganda Managing Director Mr Varghese Thambi said at the signing ceremony “this is an excellent opportunity for Ugandan entities to enhance energy efficiency and alternate energy opportunities for the overall economic development of Uganda at concessionary interest rates.”

DTB Uganda is one of the leading technology driven SME banks in Uganda with 37 branches spread across the country. The bank has been successfully implementing its omni-channel banking strategy covering innovative payment solutions through various delivery channels including intelligent cash deposit and withdrawal ATMs, mobile banking, Internet Banking, Mobile Merchant Platform,  among others.

DTB is the first bank to participate in the AFD funded SUNREF program in Uganda. DTB’s parent bank in Kenya has also signed up for a similar $10 million facility with AFD.

“This program is a great contribution for Uganda to the implementation of the Paris COP 21 agreement. The private sector is a key stakeholder in the climate change agenda and I’m very glad that DTB Uganda decided to engage in SUNREF program. SUNREF program is key in supporting the local banking sector and in promoting innovative solutions for renewable energy and energy efficiency”, concluded the French Ambassador to Uganda, H.E. Sophie MAKAME.



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