Last-Mile Demand Financing for EE technologies – PSFU + IMEU

Last Wednesday the 

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#IMEU team, i.e. Private Sector Foundation Uganda (PSFU) and SNV held a stakeholder validation meeting, during which Belli Advisory was privileged to present our findings on a recent study we conducted on 'Expanding consumer financing for energy-efficient technologies to the last mile in Uganda.' The study focused on obtaining nuances from both the supply side – Micro Finance Institutions and the demand side – MSMEs and households. Findings indicate opportunities in consumer financing – a significant potential to expand access to funding for EE technologies given the interest of the last mile and awareness of EE and financing options. Additionally, challenges presented include complexities in the application process that hinder consumer uptake of the products and scepticism of the MFIs to finance since there several claims of faulty EE products. 

Overall our recommendations revolve around consumer education: increasing awareness of financing options and educating consumers on EE technologies and their benefits; streamlining application procedures and making loan terms more transparent and easily understandable, and exploring risk-sharing models like loan guarantees or credit enhancements to incentivize MFI participation. 

We are honoured to have been part of this journey and contributed to sustainable consumer financing for EE technologies in Uganda. The opinions, suggestions, and recommendations obtained will be very crucial in shaping the next steps of any project ideation on the same topic and developing actionable recommendations to bridge the gap between financing and EE technology adoption in Uganda.