Minister of State for Energy and Mineral Development Phiona Nyamutoro has challenged Uganda’s hospitality industry to invest in clean energy to reduce operating costs, as Equity Bank Uganda pledged financing solutions to support hotels transitioning to greener technologies.
The call was made on Tuesday, October 20, 2026, during the launch of the National Green Hospitality Initiative at Serena Hotel Kampala, a programme aimed at helping hotels, lodges, resorts and conference facilities lower energy expenses while improving operational efficiency and tourism competitiveness.
Co-hosted by the Ministry of Energy and Mineral Development and Equity Bank Uganda, the initiative places renewable energy, energy-efficient technologies and affordable financing at the centre of efforts to make Uganda’s hospitality sector more sustainable and commercially competitive.
Nyamutoro said investments in solar power, energy storage, efficient equipment, clean cooking and electric mobility could help hospitality businesses reduce their dependence on costly and unpredictable energy sources.
“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 argued that savings from improved energy efficiency could be redirected towards staff development, facility upgrades, business expansion and better visitor experiences.
The minister added that the transition could create business opportunities for energy auditors, engineers, project developers, equipment suppliers, installers, financiers and maintenance companies.
The initiative aligns with Uganda’s Fourth National Development Plan and the Energy Policy for Uganda 2023, particularly their focus on sustainable energy, tourism development and private-sector growth.
Equity Bank Targets Green Financing
Equity Bank Uganda’s Director of Public Sector and Social Investments, Catherine Psomgen, said financial institutions needed to help businesses translate sustainability ambitions into investments that deliver measurable commercial returns.
“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 through lighting, cooking, water heating, cooling, laundry and transport, making them suitable candidates for investments that could reduce operating expenses.
Equity Bank is positioning itself to support the transition through financing options that include green loans, equipment financing, leasing, blended finance and other arrangements designed to help businesses acquire solar photovoltaic systems, battery storage, efficient cooling equipment and clean-cooking technologies.
The bank and other participating institutions are also expected to support hospitality operators through a Green Tourism Business Clinic, where businesses can assess their cash flows, evaluate potential energy upgrades and explore financing options.
Psomgen said the success of the initiative should be measured by the investments mobilised, technologies deployed, jobs created and improvements in business performance.
The approach seeks to move green investment beyond environmental commitments and establish it as a practical business decision that can improve profitability and operational resilience.
Hoteliers Demand Flexible Loan Repayments
However, Uganda Hotel Owners Association chairperson Jean Byamugisha cautioned that access to green financing would not automatically translate into widespread adoption unless lenders considered the seasonal nature of tourism revenues.
“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 typically record stronger revenues during peak tourism seasons, when higher occupancy enables them to meet financial obligations more comfortably. During low-demand periods, however, reduced revenue can put pressure on cash flow and the ability to service loans.
Byamugisha urged financial institutions to develop repayment arrangements that reflect these fluctuations, including allowing businesses more time to repay during quieter months.
She said flexible repayment schedules would enable hotels to invest in renewable energy and energy-efficient equipment without compromising their ability to meet routine operating expenses.
The concern highlights a key challenge for green financing in the hospitality sector: investments may generate savings over time, but businesses still need repayment terms that match their revenue patterns.
Green Hotel Standards and Demonstration Projects
The National Green Hospitality Initiative proposes several measures to support the transition, including energy assessments and potential retrofits for selected hospitality facilities.
The programme aims to identify four to five facilities for detailed assessment and possible retrofit support, with demonstration projects planned ahead of the next Renewable Energy Conference.
Other deliverables include developing Uganda Green Hotel Standards, establishing a framework to address investment barriers and creating a specialised financing window for green projects.
The proposed financing framework is expected to combine green loans, concessional credit and Energy Service Company models that allow businesses to pay for energy improvements through savings generated over time.
The initiative also proposes Green Hospitality Awards to recognise businesses demonstrating measurable sustainability performance and responsible business leadership.
Nyamutoro called on hospitality operators to develop bankable projects, financial institutions to provide accessible capital, technology providers to deliver reliable solutions and public institutions to create an enabling environment for investment.
For Uganda’s tourism industry, the initiative presents an opportunity to reduce energy costs while improving service reliability and attracting investment into cleaner technologies.
Its impact will depend on whether businesses can access suitable financing, adopt technologies that deliver measurable savings and maintain repayment arrangements that reflect the realities of the hospitality market.
The ultimate objective is to make sustainability commercially viable, allowing hotels to lower operating expenses, improve visitor experiences and strengthen their competitiveness while contributing to Uganda’s broader economic growth ambitions.