UGANDA: BGFA to subsidise solar off-grid providers again

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OUGANDA : le BGFA va à nouveau subventionner les fournisseurs d’off-grids solaires © Sebastian Noethlichs/Shutterstock

The Beyond the Grid Fund for Africa (BGFA) has opened pre-qualification for its third call for proposals (BGFA3) for off-grid providers in Uganda. The successful companies will receive grants for the development of their off-grid electrification projects.

In Uganda, off-grid providers have the opportunity to receive funding for the implementation of their electrification projects. The Beyond the Grid Fund for Africa (BGFA) has just opened the pre-qualifications for its third call for proposals (BGFA3). Interested companies have until June 22nd, 2021 to apply. These off-grid providers play an important role in the process of electrifying rural areas in Uganda and elsewhere in Africa south of the Sahara.

“The BGFA3 application process is divided into two stages: a pre-qualification stage and a final application stage. The objective of the pre-qualification stage is to verify that interested off-grid energy companies meet the key eligibility criteria of the BGFA3 and the minimum technical and financial capacity requirements,” explains the BGFA.

20.7 million investment

The objective of the new call for proposals is to provide access to electricity to 3 million Ugandans living mainly in rural areas, through 600,000 new connections. This initiative is expected to have a significant impact in the East African country. According to the United States Agency for International Development (USAID), 89% of Ugandans living in rural areas still do not have access to electricity.

Read also AFRICA: universal electrification through off-grid solar mini-grids

The BGFA plans to invest $20.7 million under the BGFA3. These funds will be split into three funding packages. “The indicative size of the individual contract per company is expected to be between €1.2 and €4 million depending on the batch,” explains the BGFA. The funds invested under the BGFA3 are provided by the Swedish and Danish governments.

According to the timetable established by this multi-donor funding mechanism managed by Nordic Environment Finance Corporation (Nefco), around ten contracts will be signed by spring 2022. The companies receiving grants will have to start implementing their projects simultaneously. In addition to funding, these companies will receive technical assistance and business support from the BGFA, including advice on, for example, monitoring, evaluation and raising additional funds.

For more information on the call for expressions of interest, click here.

Jean Marie Takouleu

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