Uganda’s path toward universal electricity access is being advanced through decentralised solutions that extend energy to villages beyond the national grid.
Central to this effort is the Promotion of Mini Grids for Rural Electrification (Pro Mini Grids) project, co-funded by the European Union and the German Government, which seeks to stimulate private sector investment in mini grids and other decentralised electrification initiatives.
Its Project Coordinator, Olga Namatovu, has watched a troubling trend persist: Despite increased public and donor interest in decentralised electrification, local private sector participation remains limited – particularly in competitive tenders.
Many promising Ugandan companies struggle to move beyond the Expression of Interest (EoI) stage due to weak project bankability.
‘We noticed that many Ugandan companies were dropping out at the expression of interest stage,’ she says.
‘They would collect the bid documents, look through them, and disappear.’ To her, this was more than just a technical issue, but it was a systemic problem.
The projects were there. The need was urgent. But local players were being left behind in a space dominated by international companies.
‘What was missing,’ she says, ‘was the know-how. The confidence. The language of bankability.’
So, in July 2025, GIZ, in collaboration with the Ministry of Energy and Mineral Development, launched the ‘Strengthening Mini-Grid Projects Bankability and Finance Readiness’ training- a two-day, hands-on workshop designed to arm Ugandan companies with the tools, strategies, and financial insights to not just participate in, but meaningfully lead mini-grid investments across the country.
‘Mini-grids are no longer just pilot projects,’ Namatovu explains.
‘They’re a viable and necessary solution for communities the national grid may not reach for years. But they’re also complex and they require large capital outlays, strong technical design, and financial structuring. That’s where our local developers were getting stuck.’
The training, facilitated in part by experts from GET. Invest Finance Catalyst was tailored to unlock those very bottlenecks. Participants dove into sessions on understanding project development, risk mitigation, business modelling and financial structuring, empowering them to prepare compelling investment pitches that meet investor expectations.
For many, this was the first time someone really explained how to present their projects in financial terms. it was a rare opportunity to demystify terms like IRR (internal rate of return), CAPEX, OPEX, and investor due diligence requirements. ‘
Ibidun Olupide, Advisor at GET. Invest, put it more bluntly.
‘There’s often a disconnect between what developers prepare and what financiers are looking for. This training helped them close that gap. We helped them see things from the investor’s side,’ she says.
For Christine Kyarimpa, Country Manager at Veracity Energies Uganda Limited, the training was an eye-opener. ‘I now understand the full cycle from identifying a viable site to doing a pre-feasibility study, estimating demand, building a bankable business plan, and pitching it to financiers,’ she said.
‘This gave me the roadmap I needed.’ Muhammad Kalyango Kintu, Managing Director at Kambasco Technologies, echoed that sentiment.
His company is already developing four mini-grid sites, but navigating Uganda’s regulatory and financial systems has been daunting. ‘Mini-grids are a development objective more than a business,’ he said.
‘You go to banks, and they say the risk is too high. You go to regulators, and they ask for permits you can’t get without financing. It’s a chicken-and-egg problem. But this training helped me understand how to use letters of support, comfort letters, and align expectations on both sides.’
For Namatovu, these ‘aha moments’ were precisely the goal. ‘We’re not just doing capacity building. We’re unlocking confidence. We’re telling Ugandan companies: You belong in this space. You can lead. But you need to speak the language of financiers,’she says.
The workshop also offered a rare platform for peer learning. Early-stage and more established developers sat side-by-side, sharing stories, challenges, and insights.
‘This journey is often very lonely,’ said Kintu.
‘But here, you realise others are facing the same issues. Together, we can push for practical reforms- like flexible licensing, scalable distribution models, and better access to seed funding.’
Indeed, one of the workshop’s major calls to action was the need for more tailored support to local companies- whether through technical assistance, favourable policy adjustments, or blended finance structures that de-risk investments.
‘Government has a role too,’ said Namatovu. ‘We must ensure our frameworks are enabling not limiting the very players we want to empower.’ That sentiment is shared by Adella Kyohairwe, Senior Energy Officer at the Ministry of Energy, who attended both days of the training.
‘We want to see more licensed companies. More local participation. But that won’t happen unless we strengthen their readiness. This training is a step in that direction.’ So, what’s next?
For Namatovu, the work continues. ‘We want to see these companies win tenders, secure investment, and build projects that transform rural livelihoods. This training was just the beginning. Now it’s time for them to move- with confidence, with clarity, and with capital.’
In Uganda’s energy transition, mini-grids represent more than electricity. They represent possibility. And with sector pioneers like GIZ helping to helping to power local players forward, that possibility is no longer just a distant light on the horizon. It’s a bright spark- growing stronger with every empowered developer, and every community they help illuminate.