DFCU Bank has partnered with Sawa Energy to help businesses reduce rising energy costs by enabling them to adopt solar power without making large upfront capital investments.
The partnership will provide businesses with access to solar energy systems under an energy-as-a-service model, allowing them to pay for energy over the long term while preserving working capital for their core operations.
Kate Kiiza, DFCU Executive Director and Chief Corporate and Institutional Banking Officer, said rising electricity costs have become a significant challenge for businesses and are affecting their operating expenses.
"One of the issues that we've had in the country is the rising power costs. These are real for the business," Kiiza said.
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Under the arrangement, Sawa Energy will install solar systems for eligible businesses, with customers able to access the equipment without making the full capital investment upfront.
Kiiza said the model is intended to deliver immediate savings to businesses once the solar systems are installed.
"For our clients, this means that the operating costs are actually reducing immediately after that installation, at no cost to yourself," she said.
She said DFCU clients will also have the option of leasing the solar equipment or purchasing it, depending on their business needs.
Margaret Karume, DFCU's second Executive Director and Chief Credit Officer, said the partnership will help businesses preserve working capital that would otherwise be tied up in meeting energy costs.
Karume said energy expenses take up a significant share of operating costs for some businesses, limiting the resources available for expansion and other investments.
"The preservation of working capital goes a great way because this will be deployed into other requirements of the customer," she said.
She said the partnership reflects DFCU's approach of moving beyond traditional financing to solutions that address specific operational challenges faced by businesses while supporting sustainable financing.
Allan Okello, Sawa Energy Country Manager, said the biggest barrier preventing many industrial businesses from switching to solar is the high initial cost of the equipment.
"The biggest hurdle, I would say, for industrial customers to grow green is the capital investment," Okello said.
He said Sawa Energy will provide Tier One solar equipment backed by warranties of up to 30 years and will offer on-ground repair and maintenance at no additional cost to customers.
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"We're also going to be doing real-time on-ground repair and maintenance at no additional cost," Okello said.
Okello said the maintenance component is intended to address failures that can occur when businesses install solar systems without adequate servicing.
Under the energy-as-a-service model, Sawa Energy will provide and manage the solar systems for periods ranging from 10 to 25 years, allowing businesses to focus on their core operations while the company handles the technical requirements.
The model is expected to target businesses such as manufacturers and hospitals, which often have significant and consistent energy requirements.
Okello said the arrangement will enable businesses to reduce their energy expenses, improve profitability and shift to cleaner energy without diverting substantial capital from their main operations.
Sawa Energy has operated in Rwanda, Uganda and Zambia since 2019 and has undertaken more than 66 projects in South Africa, according to Okello.
The partnership comes as businesses increasingly seek alternatives to conventional electricity and ways of reducing operating costs while meeting growing sustainability requirements.
