Ugandan renewable energy firm Sawa Energy has raised €2.5 million (US$2.9 million) in equity investment from the EU-funded Electrification Financing Initiative (ElectriFI) to boost access to clean power and replace polluting diesel generators across Uganda and Rwanda.
The investment, made through ElectriFI’s Uganda Country Window, aims to accelerate the company’s solar energy deployment among commercial and industrial clients while attracting more institutional investors to scale its operations.
“At Sawa Energy, our mission is to make clean, affordable energy accessible for businesses across East Africa. This partnership with ElectriFI enables us to scale our impact, helping more companies reduce emissions, lower energy costs, and improve productivity,” said Samuel Kaufman, CEO and co-founder of Sawa Energy.
What Is Sawa Energy?
Founded in 2021, Sawa Energy is a Ugandan renewable energy company dedicated to transforming how businesses in East Africa access and use power.
The company focuses on providing solar photovoltaic (PV) and energy storage solutions to commercial and industrial (C&I) clients, a market segment that often suffers from unreliable electricity supply and high operational costs linked to diesel generators.
Operating in both Uganda and Rwanda, Sawa Energy’s model is designed to help businesses transition smoothly from carbon-intensive power sources to clean, sustainable alternatives.
The company’s emergence reflects a growing movement across Africa where private enterprises are taking the lead in building renewable energy infrastructure to supplement national grids that are often overstretched and underdeveloped.
How Sawa Energy Operates
Sawa Energy’s approach is built around an “energy-as-a-service” model, where businesses can access clean energy solutions without paying high upfront costs.
Instead, the company designs, installs, and operates custom-built solar and battery storage systems tailored to each client’s energy needs.
These are provided under long-term contracts ranging between 10 and 25 years, allowing clients to pay for energy at discounted rates compared to what they would typically spend on national grid tariffs or diesel fuel.
Beyond installation, Sawa Energy handles continuous maintenance, performance monitoring, and system upgrades, ensuring optimal efficiency throughout the contract’s life cycle.
This model not only reduces financial pressure on clients but also guarantees predictable energy costs and operational reliability, two factors critical to competitiveness in East Africa’s industrial and manufacturing sectors.
About ElectriFI
The Electrification Financing Initiative (ElectriFI) is a European Union-funded impact investment facility managed by EDFI Management Company, aimed at expanding access to affordable and sustainable energy in developing regions.
ElectriFI works by investing in early- and growth-stage renewable energy companies to de-risk private capital investments that might otherwise avoid high-risk markets.
Through its Uganda Country Window, ElectriFI channels funds to local companies that have the potential to scale renewable energy use and strengthen rural and urban energy systems.
By supporting Sawa Energy, ElectriFI is not only helping reduce dependence on diesel-based power generation but also demonstrating how blended finance, combining public and private investment, can accelerate Africa’s energy transition.
“By supporting Sawa Energy’s expansion in Uganda and Rwanda, we are helping to accelerate the transition from polluting diesel generators to reliable, affordable solar power for businesses,” said Rodrigo Madrazo, CEO of EDFI Management Company.
Details of the €2.5 Million Funding
The €2.5 million equity investment represents a strategic push to scale renewable energy infrastructure across Uganda and Rwanda.
The funds will be used to expand Sawa Energy’s solar PV installations and battery energy storage systems (BESS), enabling more businesses to adopt clean power alternatives.
ElectriFI’s investment is expected to unlock an efficient capital structure, meaning it will help Sawa attract additional private investors, lenders, and development financiers to further amplify its reach.
The funding will also support the development of larger energy projects that could feed into national grid systems or power industrial clusters, boosting energy stability in both countries.
Sawa Energy’s Plans for the Fund
Sawa Energy intends to use the new investment to accelerate its clean energy rollout, strengthen operational capacity, and expand its project pipeline across Uganda and Rwanda.
The company plans to prioritize energy-intensive sectors such as manufacturing, agriculture processing, and logistics, which face the greatest cost burden from diesel dependence.
It will also invest in technical workforce training, digital monitoring technologies, and strategic partnerships with local contractors and financiers to improve execution speed and impact.
Over the long term, Sawa Energy aims to develop a regional renewable energy ecosystem that supports both large-scale industries and small to medium-sized enterprises (SMEs), helping them cut emissions while staying competitive.
Why This Matters
The investment marks another milestone in Africa’s growing renewable energy revolution, where regional firms are increasingly leveraging global finance to solve local energy challenges.
East Africa’s heavy reliance on diesel generators not only inflates production costs but also worsens carbon emissions and air pollution. By offering a practical, cost-efficient alternative, Sawa Energy’s model could play a vital role in transforming the continent’s industrial landscape.
Moreover, this partnership between ElectriFI and Sawa Energy demonstrates how targeted investments can help build sustainable economies and strengthen private-sector confidence in Africa’s clean energy future.
“We believe in building a sustainable model that benefits our clients, our team, our investors, and the communities we serve,” Kaufman said.
This underscores the company’s vision for a region where access to reliable, renewable power is both a business advantage and an environmental necessity.
Talking Points
The Sawa Energy–ElectriFI partnership represents a promising and pragmatic step toward accelerating East Africa’s clean energy transition, but it also highlights the region’s ongoing dependence on external financing to scale renewable infrastructure.
While the €2.5 million investment is relatively modest in global terms, it could have outsized impact if effectively deployed, especially in displacing diesel use among commercial and industrial clients, which remains one of the continent’s biggest sources of emissions and operating costs.
However, long-term success will depend on Sawa Energy’s ability to sustain affordable pricing, manage complex maintenance logistics, and navigate regulatory hurdles in both Uganda and Rwanda’s evolving energy markets.
The deal’s real test will lie not in its announcement but in whether it can deliver measurable improvements in energy reliability, cost efficiency, and environmental outcomes for local businesses.
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