Renewable Energy Guarantee - Uganda - Subsidy for Renewable Energy  Guarantee - Uganda Garanti för förnyelsebar energi - Uganda Insatsen syftar till att genom Sidas garanti till Stanbic frigöra privat kapital i form av lån till individer, icke-statliga företagare och NGOer i Uganda. Insatsen skall stimulera utveckling och investeringar i förnybar energi / energieffektivisering för att ge bättra förutsättningar för landets ekonomiska utveckling, skapa grogrund för nyföretagande och arbetsmöjligheter, främja kvinnligt företagande samt bidra till förbättrat klimat. By means of Sida extending a guarantee to Stanbic, the contribution aims to release private capital as loans to individuals,  non-sovereign small-, and medium-sized enterprises (SMEs ), and non-governmental organizations (NGOs) in Uganda to spur development and investments in renewable energy / energy efficiency to stimulate economic growth, create opportunities for new companies, encourage women owned/managed businesses as well as to contribute to improved climate. 5.1 Objective of the intervention.
SME's access to debt financing for energy in Uganda is hampered by a number of challenges including limited collateral, high interest rates based on high perceived risks of these entities and capacity challenges among SMEs.   The RE guarantee facility is expected to enable legally registered and functioning SMEs, cooperatives, farmers' associations and other qualified borrowers to access commercial loans from Stanbic bank for the purposes of increasing access to renewable energy solutions (such as clean cookstoves, Solar pay-as-you-go solutions, mini grids, grid extensions for power distribution, biogas, bioethanol, pellets, briquettes, among others). The contribution aims to brings value addition, to reduce the risk for Stanbic to lend into the lower segments under collaterised players in the renewable energy and energy efficiency sector.
The RE-Guarantee aims to create access to basic and affordable renewable energy services for people living within and outside the national electricity grid and to use a guarantee to unlock private capital from Stanbic bank to facilitate lending to individuals, SMEs and NGOs that are delivering renewable energy and energy efficiency products in rural and urban areas (focus is on rural areas) and thereby accelerating the creation of a long-term commercial and otherwise sustainable market.
Stanbic is to gain an increased appetite to lend to the renewable energy sector as illustrated in the executive summary document. Lending to this segment which is predominately not lent by the bank due to perceived risk will have a huge impact on capital allocation and impairment since this is looked at as a sovereign guarantee.
To increase productive employment in the renewable energy and energy efficiency value chain; improved access to reliable and cheap energy; reduce carbon emission; improved health by elimination of kerosene use; increased study time and social economic transformation pf community livelihood. Also, there is potential for new businesses to thrive and existing businesses to reduce cost of operation basing on improved access to reliable clean energy options.
To consider other collateral alternatives in addition to traditional collateral that will include (receivables, inventory, directors (owners) guarantee and physical assets). The loan facility will enable borrowers to access finance for asset acquisition, working capital for stock and funds to expand to new areas and connect with new consumers of their products and services. 
To facilitate to access renewable energy for privately operated health facilities, hence improving their operations and serving the communities better. 
To contribute on Embassy's gender equality as well as Sweden's Feminist Foreign Policy, the bank is excited to support women owned businesses with a target of having more than 20% of total loans related to women businesses.
To make policy more conducive for on-grid and off-grid electrification through platforms for coordination, that are self-sustaining, run by local actors and interacting with each other; and
To contribute to inclusive and sustainable development in Uganda, and other relevant Sustainable Development Goals.