It is estimated that USD 800 million in debt will need to be invested in solar home system businesses in Uganda to achieve universal energy access (SDG 7). For the long-term sustainability of the off-grid solar sector, there is a need for local banks and financial institutions to recognize this opportunity and play a central role in providing local currency debt financing which reduces the foreign exchange (FX) risk faced by businesses while enabling them to scale.

This report outlines the need for local currency debt financing, highlights lessons learned from past and present deals and facilities globally and in Uganda, and provides recommendations for development partners, DFIs, local financial institutions and government on increasing access to local debt for SHS businesses in Uganda.