9 Transitioning to a Low-Carbon Economy and Renewable Energy …
289
Fifty-eight years after colonial independence, it is crucial to examine
Uganda’s history of economic growth about energy access. While trends
in recent years have been upward, it is key to note the stints of political instability, coffee dependence and economic reforms which had
affected Uganda’s economic growth negatively. Today, agriculture has and
continues to dominate the economy with 70% of the population using
it as a source of livelihood, whether directly or indirectly. According to
2020 UBOS statistical abstract, manufacturing’s contribution to GDP
has been constant at only 15% over the last 15 years, and the stagnant growth is constrained by lack of cost-effective electricity which can
support in achieving economies of scale needed for productivity increase.
It is against this stark background that this chapter looks at how Uganda
can explore trends in developing its decentralized energy access for the
last mile which is most vulnerable and makes up the most significant
demographic of Uganda’s population
9.2 Main Constraints to Uganda’s Efforts
to Transition to a Low-Carbon Economy
9.2.1 Counterfeit Products
The market for household cleantech solutions is becoming saturated
(World Bank 2020). As is a commonality trend with many other product
lines, cleantech technologies have followed suit as seen by the presence
of counterfeits in local markets.
These products are often untested, not of standard and in some cases
equal emitters of CO 2 compared to the traditional fuels. Uganda enjoys a
market economy and boasts of a bustling entrepreneurial industry. This
has its advantages and disadvantages. First, it means it is easy for local
people to latch on to a commodity business for which they have no
expertise or technical after-sales services. This inadvertently can create
an income stream for the parties involved. However, this enables more
dissemination of cheaper and less efficient products. In severe cases,
the inefficient solar home systems are sold in independent parts which
becomes a challenge. Existing institutions mandated to perform this
monitoring and enforcement function should be strengthened to do so
289
Fifty-eight years after colonial independence, it is crucial to examine
Uganda’s history of economic growth about energy access. While trends
in recent years have been upward, it is key to note the stints of political instability, coffee dependence and economic reforms which had
affected Uganda’s economic growth negatively. Today, agriculture has and
continues to dominate the economy with 70% of the population using
it as a source of livelihood, whether directly or indirectly. According to
2020 UBOS statistical abstract, manufacturing’s contribution to GDP
has been constant at only 15% over the last 15 years, and the stagnant growth is constrained by lack of cost-effective electricity which can
support in achieving economies of scale needed for productivity increase.
It is against this stark background that this chapter looks at how Uganda
can explore trends in developing its decentralized energy access for the
last mile which is most vulnerable and makes up the most significant
demographic of Uganda’s population
9.2 Main Constraints to Uganda’s Efforts
to Transition to a Low-Carbon Economy
9.2.1 Counterfeit Products
The market for household cleantech solutions is becoming saturated
(World Bank 2020). As is a commonality trend with many other product
lines, cleantech technologies have followed suit as seen by the presence
of counterfeits in local markets.
These products are often untested, not of standard and in some cases
equal emitters of CO 2 compared to the traditional fuels. Uganda enjoys a
market economy and boasts of a bustling entrepreneurial industry. This
has its advantages and disadvantages. First, it means it is easy for local
people to latch on to a commodity business for which they have no
expertise or technical after-sales services. This inadvertently can create
an income stream for the parties involved. However, this enables more
dissemination of cheaper and less efficient products. In severe cases,
the inefficient solar home systems are sold in independent parts which
becomes a challenge. Existing institutions mandated to perform this
monitoring and enforcement function should be strengthened to do so