USAID hampers Ugandan solar markt by providing grants to individual companies

Four grants each worth nearly $100,000 were awarded to four Ugandan owned solar firms to increase access to clean off-grid energy in Bidi-Bidi, Kiryandongo and Rwamwanja refugee settlements. The firms are; Solar Today, Power Trust, Aga Great and Raising Gabdho Foundation.

Although the concern of USAID is certainly honourable, it must also be noted that the subsidisation of individual companies significantly hampers the development of a local solar market. Subsidies should not go to individual companies, but to the development of the market, i.e. they should be equally accessible to all companies. A good example is the concept of “result-based finance” by GIZ.

 


 

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