Ugandan renewable energy provider Sawa Energy has secured €2.5 million (approximately $2.9 million) in equity funding from ElectriFI, the European Union-backed Electrification Financing Initiative, marking a significant milestone in its mission to expand clean, affordable power for enterprises across East Africa. This Sawa Energy Uganda funding round will accelerate the deployment of solar photovoltaic (PV) and battery storage systems for commercial and industrial clients in Uganda and Rwanda—replacing costly and polluting diesel generators with reliable, sustainable alternatives.
Established in 2021, Sawa Energy specializes in fully financed solar-plus-storage solutions delivered through long-term power purchase agreements (PPAs). By eliminating the upfront capital barrier, the company enables factories, agribusinesses, healthcare facilities, and logistics hubs to access electricity at rates lower than grid tariffs—driving down operational costs while reducing carbon emissions.
The investment comes via ElectriFI’s Uganda Country Window, a dedicated facility designed to de-risk early-stage renewable energy projects and catalyze follow-on institutional capital. With this funding, Sawa Energy expects to attract additional investors and scale its pipeline of off-grid and hybrid energy systems across high-demand sectors.
CEO Samuel Kaufman emphasized the broader impact: “This collaboration will enable us to reduce emissions, lower energy costs, and improve productivity for businesses throughout East Africa.” He added that stable, affordable power is not just an operational advantage but a competitive necessity for regional industries aiming to scale sustainably.
EDFI Management Company, which manages ElectriFI, described the deal as a strategic step toward phasing out diesel-based power generation in underserved markets. “This agreement supports the transition from polluting fossil fuel generators to clean, resilient energy infrastructure,” a spokesperson said. “Sawa Energy’s proven model demonstrates how private-sector innovation can drive inclusive decarbonization.”
Uganda and Rwanda face persistent energy access challenges, particularly for off-grid enterprises reliant on diesel—a solution that is not only environmentally damaging but also economically volatile due to fluctuating fuel prices. Sawa Energy’s solar-plus-storage systems offer a hedge against these risks, delivering predictable pricing and uninterrupted power supply.
Beyond cost savings, the investment advances national climate goals and supports regional industrialization under frameworks like the African Union’s Agenda 2063 and the Paris Agreement. It also aligns with growing corporate demand for green operations, enabling businesses to meet ESG targets while improving bottom-line performance.
With this new capital, Sawa Energy is poised to expand its engineering, procurement, and construction capacity, deepen partnerships with local utilities, and enhance monitoring and maintenance capabilities using digital tools.
The Sawa Energy Uganda funding success highlights the increasing viability of homegrown cleantech ventures in attracting international development finance—and signals growing confidence in African-led solutions to the continent’s energy deficit.
As East Africa’s economy grows, so too does the need for scalable, sustainable power. Sawa Energy isn’t just lighting up factories—it’s powering a cleaner, more resilient future for African industry.
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