ElectriFI has committed €2.5 million in equity to Sawa Energy, a fast-growing renewable energy company operating in Uganda and Rwanda. The funding, announced on October 31, 2025, is structured through the ElectriFI Uganda Country Window, an EU-backed facility focused on early-stage clean energy ventures. This transaction is intended to speed up the rollout of solar photovoltaic and battery storage systems for commercial and industrial customers, particularly in Uganda.
ElectriFI Investment Overview
The equity stake from ElectriFI is designed to strengthen Sawa Energy’s capital structure and crowd in additional institutional lenders and investors. By improving the company’s ability to raise blended finance, the investment is expected to support a rapid scale-up of solar and backup energy storage projects across priority markets. ElectriFI positions this deal as a concrete example of how impact-first capital can displace diesel generation while enhancing business competitiveness.
Sawa Energy’s Business Model
Founded in 2021, Sawa Energy develops, finances, and operates solar and battery projects that are tailored to each client’s consumption profile. The company offers long-term power contracts, typically ranging from 10 to 25 years, at tariffs that are discounted compared to conventional grid electricity. Alongside financing and installation, Sawa Energy provides full operations and maintenance services to ensure systems perform reliably throughout the life of each agreement.
Impact on Businesses in Uganda and Rwanda
Sawa Energy’s solutions target commercial and industrial users that struggle with high energy costs, unreliable grid supply, and dependence on diesel generators. By shifting these businesses to fully financed solar and storage systems, the company helps reduce power outages, stabilize production, and improve cost predictability. The ElectriFI-backed expansion is expected to enable more firms in Uganda and Rwanda to cut emissions while improving operational resilience and profitability.
Strategic and Environmental Significance
The transition from diesel to solar that Sawa Energy promotes carries both economic and environmental benefits for East Africa. Reduced diesel consumption translates into lower CO₂ emissions, less exposure to fuel price volatility, and diminished noise and air pollution around industrial sites. For corporate customers, access to clean and reliable power also strengthens sustainability credentials and supports long-term investment planning.
Role of the European Union and EDFI Management Company
ElectriFI, managed by EDFI Management Company, is funded by the European Union as an impact-first vehicle to expand sustainable energy access in developing countries. Through this investment, the EU signals continued support for private sector-led climate action and local enterprise development in Africa. The Uganda Country Window, with a total envelope of EUR 5 million, specifically targets early-stage renewable energy companies that can extend clean, reliable power to areas where electrification rates remain low.
Alignment with Broader Energy and Development Agendas
The Sawa Energy transaction aligns closely with the Africa-EU Green Energy Initiative and the EU’s Global Gateway Africa-EU Investment Package. These frameworks seek to accelerate clean energy deployment, mobilize private capital, and build resilient infrastructure that supports industrialization on the continent. By channeling equity into a regional player focused on commercial and industrial users, ElectriFI and EDFI Management Company aim to demonstrate how scalable business models can drive both climate impact and economic growth.
Sawa Energy’s partnership with ElectriFI marks a significant step in advancing distributed solar and storage solutions for businesses in Uganda and Rwanda. The EUR 2.5 million equity injection is expected to catalyze further investment, support displacement of diesel generators, and improve energy reliability for commercial and industrial clients. As the company scales its portfolio, the deal illustrates how targeted development finance can accelerate the transition to clean power while creating tangible benefits for local enterprises and communities.