EIB signs USD12.5 million loan with Fenix International to electrify Uganda

The European Investment Bank (EIB) has recently signed a USD12.5 million loan agreement with Fenix International to electrify Uganda via solar kits, according to a news report by Afrik 21.

Through this financing, the solar home systems provider aims to electrify 1.4 million people living in rural areas in Uganda.

According to the European Investment Bank (EIB), only one in five Ugandans living in rural areas has access to reliable electricity.

The financial institution believes that solar home systems can help electrify homes in remote areas not served by Uganda’s national electricity grid.

That is the rationale behind its USD12.5 million loans to Fenix International, a supplier of solar home systems.

Fenix International, the subsidiary of the French group Engie has ambitions to extend the distribution of its solar home kits to rural areas in Uganda. 

"Our new partnership with the EIB in Uganda will enable Fenix to provide highly affordable systems to millions of people in villages across the country," said Yoven Moorooven, managing director of Engie Africa.

In rural areas, solar systems distributed by Fenix International provide lighting as well as power for appliances such as radios, refrigerators, televisions, and mobile phone charging.

"The introduction of a pay-as-you-go model will enable families who would not be able to pay the initial costs of solar home systems to pay back the cost of the equipment over several years at less than 20 cents per day, " the EIB explains.