About BUDS-ERT

What is BUDS-ERT?

BUDS-ERT is part of an integrated programme of Government of Uganda developed with the aim of increasing rural electrification. BUDS-ERT is a service of the Private Sector Foundation Uganda (PSFU).

Institutional Solar Systems

The objective of the programme is to develop private sector capacities to attract, operate and improve rural electrification related businesses and to increase efficient and productive used of electricity and traditional fuels in the rural areas.

Background to Project
The 10-year project aims at developing commercially oriented rural and renewable energy to support rural transformation in Uganda.

That is, commercially oriented service delivery of energy and ICTs, and small-scale renewable energy power generation by private enterprises, which can effectively support scale-up of electricity and ICT access to underserved areas on a sustainable basis.

Rural electrification is a new field for the private sector in Uganda. The country has lacked the capacities and institutional framework for the type of commercially oriented rural and renewable energy development envisaged.

The first phase of the project (4 years) will address the initial requirements: a robust policy to ensure a functioning conducive environment, an appropriate institutional framework, and adequate private sector capacities upon which a large-scale program can be built.

The Energy for Rural Transformation Project

Objective
The purpose of this component is to develop private sector capacities for starting and operating rural electrification related businesses and for efficient productive uses of electricity and ICTs in ERT areas.

Strategy
Business and market development services will be provided to entrepreneurs, micro-enterprises and SMEs, investors, finance organizations, NGOs and CBOs and other private entities to address skills and information barriers that constrain their response to rural electrification and ICT business opportunities in ERT areas.

1. pre-investment, including assistance in developing business plans and applications as required for commercial financing and for REF, GEF and other subsidies;



2. start up and early business and market development;
3. business improvement and growth. The targeted business sectors for the business to business services on a cost share grants basis include independent grids, solar pv, co-generation and ancillary manufacturing, financing, and services businesses.
   
   Existing and potential businesses, most of them micro, small and medium scale enterprises, that have the opportunity to contribute to rural transformation through the increased use of electricity for productive purposes will be an important target category on non-cost share services for capacity building and rural enterprises development.

• Solar photovoltaic
• Component producers
• Traditional fuels
• Minigrids
• Power-related service companies

Rural electrification and the expansion of telephony and opening of points of presence will open opportunities for micro and SMEs in agro-processing and other sectors for business growth and improvement and for the establishment of new businesses.

What is the aim of BUDS-ERT?

BUDS-ERT is designed as a grant scheme to provide financial support and advisory services to private sector firms, legally established in Uganda to engage in the provision of energy services and information and communication technology (ICT) business in rural areas.

The objective of the BUDS-ERT program is to develop private sector capacities to start, operate, and improve ICT and rural electrification related businesses and to increase efficient and productive usage of electricity and traditional fuels in rural areas.