Uganda is a landlocked country with an estimated population of 34.9 million that has been growing at 3.2 percent per year over the last decade. Approximately 85 percent of Uganda’s population is rural, deriving livelihoods from subsistence agriculture and other natural resources, such as fisheries. The country is endowed with a rich and diverse environment and natural resource base, both of which underpin economic growth and livelihood security. Agriculture constitutes an estimated 50 percent of export commodities, contributes over 20 percent of GDP, and engages nearly two-thirds of Uganda’s working population, with the majority involved in subsistence production.
Uganda is at a turning point in its development and struggles to meet the objectives of providing clean and reliable energy to its people, conserving its important natural resource base, and growing its economy to provide more opportunities. The size of forest cover is declining due to high rates of deforestation nationwide corresponding to pressure to provide livelihoods and economic benefits. It was estimated that there was an annual forest loss of 88,638 hectares per year from 1990-2005. While 81 percent of energy production in the country is derived from hydropower, geothermal potential remains untapped due to lack of public funding and a reluctance by the private sector to bear exploration risks. The main difficulties to overcoming these obstacles have been identified as institutional, regulatory and legal constraints, lack of technical and human capacities, as well as economic and financial barriers.
Uganda has pledged to increase forest cover from present 15% to 18% by 2021 and 24% by 2040.
Uganda is partnering with the CIF, the African Development Bank, the World Bank, and the International Finance Corporation to amplify its current reforestation policies and diversify its renewable energy mix. FIP resources will be used to conserve and enhance forest landscapes to maintain the biodiversity, livelihoods, and economic opportunities which they support. FIP will also be leveraged to scale-up REDD+ initiatives to elevate Uganda’s participation in global action on climate change. The SREP Investment Plan is being constructed to coordinate among various agencies of the Government of Uganda and align them under a shared objective of diversifying the countries renewable energy mix. Recognizing the country’s vulnerability to worsening climate impacts, PPCR intends to utilize diverse stakeholder engagement to mainstream climate considerations into policy while bringing the public and private sectors together to improve collaboration and targeted financing. Each fund is intending to cultivate a transformational enabling environment in Uganda that is in alignment with the country’s unique developmental process and needs.