300
M. Tumusiime
Funding to private NGOs substantially comes from abroad, where some
funding restrictions have become a hindrance for project implementation
(Global Distributors Collective 2019). The funding’s impact expectations are not able to match ground capabilities. Global Distributors
Collective, a last mile distributors’ collective, in its state of the sector
report, laments from their findings that three key challenges exist in
decentralized sourcing of funds: minimum investment sizes, collateral
requirement and interest rates. Respectively, funders defend this by
explaining that transaction costs are too high for small figures, loans
become risky without collateral and a need for a high return on last-mile
distribution risk (Global Distributors Collective 2019).
Today, funders world over are innovative in the way they provide
funding through; Results-Based Financing (RBF) models, incubation,
venture capital and debt financing. These diverse methods are a new
way to not only mitigate misappropriation but encourage innovations
in achieving project goals which sometimes can go awry. The number
of energy-focused incubators in Uganda alone is still too low. Incubation and acceleration programmes bridge the gap in connecting various
actors along the energy value chain. Commercialization of an innovation
or technology is a daunting process since the facilitator like incubators
has minimal control power over operations on a day to day basis. The
facilitating process, however, works to remove barriers that the innovation may face in its launch stage and in its bid to scale up (Murphy et al.
2000).
Drawing on the above therefore, funding can play a vital role in subsidization of product prices but at the risk of distorting local economy
markets which is why clear lines must be put in place. Funding to
energy programmes and organizations can also be targeted towards initiatives that empower the creation of more opportunities for other people,
thereby increasing the impact of funding.
M. Tumusiime
Funding to private NGOs substantially comes from abroad, where some
funding restrictions have become a hindrance for project implementation
(Global Distributors Collective 2019). The funding’s impact expectations are not able to match ground capabilities. Global Distributors
Collective, a last mile distributors’ collective, in its state of the sector
report, laments from their findings that three key challenges exist in
decentralized sourcing of funds: minimum investment sizes, collateral
requirement and interest rates. Respectively, funders defend this by
explaining that transaction costs are too high for small figures, loans
become risky without collateral and a need for a high return on last-mile
distribution risk (Global Distributors Collective 2019).
Today, funders world over are innovative in the way they provide
funding through; Results-Based Financing (RBF) models, incubation,
venture capital and debt financing. These diverse methods are a new
way to not only mitigate misappropriation but encourage innovations
in achieving project goals which sometimes can go awry. The number
of energy-focused incubators in Uganda alone is still too low. Incubation and acceleration programmes bridge the gap in connecting various
actors along the energy value chain. Commercialization of an innovation
or technology is a daunting process since the facilitator like incubators
has minimal control power over operations on a day to day basis. The
facilitating process, however, works to remove barriers that the innovation may face in its launch stage and in its bid to scale up (Murphy et al.
2000).
Drawing on the above therefore, funding can play a vital role in subsidization of product prices but at the risk of distorting local economy
markets which is why clear lines must be put in place. Funding to
energy programmes and organizations can also be targeted towards initiatives that empower the creation of more opportunities for other people,
thereby increasing the impact of funding.