In a major development for Uganda's clean cooking sector, the Uganda National Alliance on Clean Cooking (UNACC) and EcoGreen Microfinance Ltd have formalized a strategic partnership by signing a Memorandum of Understanding (MoU).
This event took place on 3rd September at the UNACC offices in the Ndundu Complex on Kisaasi-Kyanja Road, signaling a new chapter in addressing the financial challenges that have long hindered the growth and adoption of clean cooking technologies in the region.
The clean cooking sector has grappled with substantial financial barriers, with inadequate access to capital being a critical barrier. According to a 2023 report by the World Bank, many enterprises within this sector struggle to obtain the funding necessary for scaling and innovation (World Bank, 2023). The Clean Cooking Alliance further highlights that restricted access to affordable credit limits the ability of businesses to expand their reach and enhance their offerings (Clean Cooking Alliance, 2022).
A major challenge in this sector is the high upfront cost associated with clean cooking solutions. The International Renewable Energy Agency (IRENA) notes that while clean cookstoves present significant long-term benefits and savings, the initial investment required for these technologies can be prohibitively high for many households and small enterprises (IRENA, 2023). This financial barrier affects individual consumers and hinders the growth of Micro, Small, and Medium Enterprises (MSMEs) in the sector, limiting their capacity to effectively distribute and implement these technologies.
The MoU signing was marked by the participation of key representatives from both UNACC and EcoGreen Microfinance Ltd. UNACC, represented by Nelson Byanyima, Communications Officer; Eng. Kalema Abdu, General Secretary; and Sarah Babirye, Project Coordinator. EcoGreen Microfinance Ltd was represented by Dr. Arinaitwe Alice, Vice Chairperson of the Board, and Shinner Owembabazi, Relationship Manager for Partnerships.
Dr. Arinaitwe Alice highlighted the significance of the partnership, stating, “This MoU represents a remarkable opportunity for EcoGreen Microfinance Ltd to engage with UNACC and support the clean cooking sector. We are enthusiastic about this collaboration, as it enables us to directly address the financial constraints that have long impeded sector growth. By providing targeted financial support, we aim to help UNACC’s members overcome the high upfront costs associated with clean cooking solutions and expand their impact.”
Eng. Kalema Abdu emphasized the significance of the partnership, stating, "Our collaboration with EcoGreen Microfinance Ltd is a key step in overcoming the financial challenges that have long limited the growth of the clean cooking sector. This MoU will provide our members with the financial resources needed to break through the upfront cost barriers, enabling them to expand their operations and make clean cooking technologies more accessible to communities across Uganda."
The MoU’s focus on UNACC’s subscribed members—comprising Micro, Small, and Medium Enterprises (MSMEs)—is particularly noteworthy. These enterprises will benefit from financial resources designed to assist them in navigating the challenges associated with high upfront costs, thereby fostering their growth and the broader dissemination of clean cooking technologies. The anticipated outcome of this partnership includes improved health outcomes and a reduction in environmental impact through the increased adoption of clean cooking solutions.
In summary, this MoU marks a significant milestone for Uganda's clean cooking sector. By addressing the challenges of limited financing and the high upfront costs that frequently hinder the adoption of clean cooking technologies, the partnership between UNACC and EcoGreen Microfinance Ltd is set to drive substantial progress. This collaboration will strengthen clean cooking enterprises, encourage innovation, and contribute to a healthier, more sustainable future for Uganda.
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