Uganda’s Energy Ministry and Equity Bank Uganda have launched a green hospitality initiative aimed at reducing energy costs and boosting tourism competitiveness, as hotel owners call for flexible loan repayment terms to accommodate seasonal revenues.
Minister of State for Energy and Mineral Development Phiona Nyamutoro has called on Uganda’s hospitality industry to embrace green energy investments, saying renewable energy and energy-efficient technologies could reduce operating costs, improve service reliability and strengthen the country’s tourism sector.
Nyamutoro made the call on October 20, 2026, during the launch of the National Green Hospitality Initiative at Serena Hotel Kampala. The programme, co-hosted by the Ministry of Energy and Mineral Development and Equity Bank Uganda, seeks to encourage hotels, lodges, resorts and conference facilities to adopt sustainable energy solutions while improving their financial performance.
Speaking at the launch, Nyamutoro said investments in solar power, battery storage, energy-efficient equipment, clean cooking and electric mobility could help hospitality businesses reduce their exposure to unpredictable energy expenses.
“When we talk about solar power, energy storage, efficient equipment, clean cooking and electric mobility, we are looking at lowering operating costs, improving service reliability, and reducing exposure to unpredictable energy expenses,” she said.
The minister said money saved through energy efficiency could be reinvested in staff development, improved facilities, business expansion and better visitor experiences.
She added that the transition to green energy could create business opportunities and employment across several sectors, including engineering, energy auditing, equipment supply, installation, project development, financing and maintenance.
According to Nyamutoro, the initiative aligns with Uganda’s Fourth National Development Plan and the Energy Policy for Uganda 2023, particularly the objectives of promoting sustainable energy, tourism development and private-sector growth.
The programme will support energy assessments and potential upgrades at selected hospitality facilities, develop national green hotel standards, establish a framework for addressing investment barriers and create a specialised financing window for green projects.
It also proposes Green Hospitality Awards to recognise businesses that demonstrate measurable progress in sustainability and responsible business practices.
“The investment case before us is therefore clear: lower costs, more reliable services, stronger enterprises and new commercial opportunities,” Nyamutoro said.
She urged hospitality operators to develop viable projects, financial institutions to provide affordable capital, technology providers to deliver reliable solutions and government agencies to create an enabling environment for green investment.
Equity Bank Uganda’s Director of Public Sector and Social Investments, Catherine Psomgen, said financial institutions needed to move beyond promoting sustainability and help businesses turn green energy opportunities into viable investments.
“Renewable energy and efficiency should not be viewed simply as environmental expenses, but as investments,” Psomgen said.
She noted that hospitality businesses consume significant amounts of energy for lighting, cooking, water heating, air conditioning, laundry and transport, making energy-efficient technologies an opportunity to improve profitability and operational resilience.
Psomgen said Equity Bank Uganda was positioning itself to support the transition through green loans, equipment financing, leasing, blended finance and other financing arrangements.
The options are intended to help hospitality businesses invest in solar photovoltaic systems, battery storage, efficient cooling systems and clean-cooking technologies.
Through a Green Tourism Business Clinic, Equity Bank and other participating institutions are also expected to help hospitality operators assess their cash flows and explore financing options for energy-efficiency upgrades.
Psomgen said the success of the initiative would depend on coordinated efforts by government, financial institutions, technology providers and tourism operators. She added that progress should be measured by the investments mobilised, technologies deployed, jobs created and improvements in business performance.
However, Uganda Hotel Owners Association chairperson Jean Byamugisha said access to green financing would not be enough to encourage widespread adoption unless lenders considered the seasonal nature of the hospitality industry.
“One shoe does not fit all. Banks need to restructure their loans to reflect the seasonal nature of the hospitality industry,” Byamugisha said.
She explained that hotels generally earn more during peak tourism seasons, when higher occupancy rates enable them to meet loan repayments. During off-peak periods, however, reduced bookings can put pressure on cash flows and make fixed repayment schedules difficult to sustain.
Byamugisha urged financial institutions to consider flexible repayment arrangements that allow hospitality businesses to meet their obligations in line with seasonal revenue patterns.
Such arrangements, she argued, would enable hotels to invest in renewable energy without compromising their ability to pay staff, meet other operating expenses and maintain service standards during quieter months.
The initiative is expected to begin by identifying four to five hospitality facilities for detailed energy assessments and potential retrofits. The selected facilities could serve as demonstration projects ahead of the next Renewable Energy Conference.
Other proposed measures include developing a national green hospitality certification framework and establishing a specialised financing window combining green loans, concessional credit and Energy Service Company pay-as-you-save models.
The proposed financing approaches are intended to widen access to clean-energy technologies by giving hospitality businesses different ways to fund upgrades and manage repayment obligations.
For Uganda’s tourism industry, the initiative seeks to make sustainability a commercially viable investment by reducing energy bills, improving operational reliability, creating employment opportunities and strengthening the competitiveness of hospitality businesses.
The extent to which the programme achieves these objectives will depend on the availability of affordable financing, the adoption of reliable technologies and the ability of lenders to structure repayment terms around the industry’s operating conditions.
