The funding is aimed at expanding access to reliable and affordable clean energy for companies that continue to face frequent power disruptions and high electricity costs.

Sawa Energy plans to use the financing to accelerate the rollout of distributed solar and battery solutions for commercial and industrial clients.

Many businesses in the region still depend on unstable grid connections or costly diesel generators, both of which can disrupt operations and raise expenses.

By offering an alternative energy source, the company is positioning itself as part of a broader shift toward cleaner and more dependable power systems in East Africa.

The investment is expected to support the installation of around 35 megawatts of solar capacity across approximately 250 projects over the next three years.

This expansion will target enterprises seeking to stabilise energy supply while lowering operating costs and reducing emissions.

Sawa Energy, founded in 2021, focuses on designing, financing, and operating solar systems tailored to business needs, often replacing diesel-powered backup systems with renewable energy solutions.

Its model allows companies to access electricity at lower and more predictable costs without large upfront investments, helping improve productivity and resilience.

The partnership reflects a wider push by impact investors to scale distributed renewable energy across Africa, where electricity access remains uneven, and demand continues to grow.

Oikocredit, which invests in socially responsible enterprises, has increasingly backed renewable energy projects as part of its strategy to strengthen energy access and support climate goals in developing markets.