Uganda’s hospitality industry should invest in renewable energy and energy-efficient technologies to cut operating costs, attract investment and improve the country’s competitiveness as a tourism destination, Minister of State for Energy Phiona Nyamutoro has said.
Nyamutoro made the call during the launch of the National Green Hospitality Initiative at Serena Hotel Kampala.
The programme aims to help hotels, lodges, resorts and conference facilities adopt cleaner energy technologies while improving profitability and creating jobs.
The initiative, co-hosted by the Ministry of Energy and Mineral Development and Equity Bank Uganda, seeks to make green energy investments more affordable through financing, technology and government policy support.
Speaking at the launch, Nyamutoro said renewable energy could help hospitality businesses reduce their dependence on costly and unpredictable energy supplies while improving the reliability of their services.
“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.
She urged hotel owners to view green energy as a business investment rather than an additional expense, arguing that savings from reduced energy bills could be used to improve facilities, recruit skilled workers, expand businesses and provide better services to visitors.
Nyamutoro said the transition would also create opportunities for businesses and professionals involved in energy audits, engineering, equipment supply, installation, project development and maintenance.
She added that the initiative was aligned with Uganda’s Fourth National Development Plan and the Energy Policy for Uganda 2023, which support sustainable energy development, private-sector growth and economic transformation.
The programme will identify hospitality facilities that require energy assessments and possible upgrades, develop national green hotel standards and establish a framework to address barriers preventing businesses from investing in clean energy.
It also proposes Green Hospitality Awards to recognise hotels and other tourism businesses that demonstrate measurable improvements in energy efficiency and environmental management.
“The investment case before us is therefore clear: lower costs, more reliable services, stronger enterprises and new commercial opportunities,” Nyamutoro said.
She called on hotel owners to develop bankable green energy projects, financial institutions to provide affordable financing, technology providers to offer reliable solutions and government agencies to create a supportive environment for investment.
Equity Bank Uganda’s Director of Public Sector and Social Investments, Catherine Psomgen, said financial institutions needed to go beyond promoting environmental 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 hotels consume substantial amounts of energy through lighting, cooking, water heating, air conditioning, laundry and transport. This makes energy efficiency and renewable energy potential sources of savings for businesses seeking to improve their financial performance.
Psomgen said Equity Bank was positioning itself to support the transition through green loans, equipment financing, leasing, blended finance and other arrangements that could help hospitality businesses acquire solar photovoltaic systems, battery storage, energy-efficient cooling equipment and clean-cooking technologies.
The bank and other participating institutions are also expected to support operators through a Green Tourism Business Clinic. The clinic will help businesses assess their cash flows, identify suitable energy upgrades and explore financing options.
Psomgen said the success of the initiative should be measured by the investments mobilised, technologies installed, jobs created and improvements in business performance.
However, Uganda Hotel Owners Association chairperson Jean Byamugisha cautioned that access to green loans alone would not guarantee widespread adoption unless banks adjusted their repayment arrangements to reflect 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 their financial obligations more easily. During quieter months, however, lower revenues can put pressure on cash flow and make loan repayments more difficult.
Byamugisha urged banks to introduce flexible repayment schedules that take these fluctuations into account, allowing businesses to meet their loan obligations without compromising their ability to pay staff, purchase supplies and cover other operating expenses.
She said such arrangements would make it easier for hotels to invest in renewable energy and efficient equipment while managing the financial pressures associated with low-demand periods.
The concern highlights one of the main challenges facing green investment in the hospitality sector: although energy-saving technologies can reduce costs over time, businesses must first find the money to install them and secure repayment terms that match their earnings.
Under the new initiative, four to five hospitality facilities are expected to be identified for detailed energy assessments and possible upgrades. The facilities will serve as demonstration projects ahead of the next Renewable Energy Conference.
Other planned measures include developing a national green hospitality certification framework and establishing a specialised financing window combining green loans, concessional credit and pay-as-you-save arrangements through Energy Service Companies.
Under the pay-as-you-save model, businesses can potentially finance energy improvements through savings generated by the new equipment, reducing the need to meet the entire upfront cost themselves.
The terms will depend on the financing arrangement and the performance of the installed systems.
The initiative is intended to help Uganda’s hospitality industry respond to rising pressure to control operating expenses while maintaining reliable services and improving the visitor experience.
For hotel owners, the immediate attraction is the prospect of lower energy bills and stronger business performance. For the wider economy, the programme could create opportunities for local suppliers, engineers, installers and maintenance firms while encouraging investment in cleaner technologies.
Nyamutoro said the priority was to turn Uganda’s green energy ambitions into commercially viable projects through partnerships between government, financial institutions, technology providers and hospitality businesses.
