Uganda: The Political Economy of Off-Grid Solar Capitalism

Abstract This chapter draws on insights from in-depth stakeholder interviews and secondary data to critically examine the political economy of off-grid solar in Uganda, emphasising the theme of the financialisation of development . We begin with an overview of the boom in off-grid solar adoption since 2009, highlighting how reduced production costs, advancements in financial technology and large flows of capital from the global North have positioned private solar companies at the forefront of addressing energy poverty in the global South—particularly sub-Saharan Africa. Through the prism of the “Wall Street Consensus”, we illustrate how a range of market support programmes are escorting capital from the global North to facilitate investment in the sector, largely to the benefit of global North-linked multinational companies operating in Uganda. It goes on to critically discuss the growing financialisation of the off-grid solar sector in Uganda, highlighting the blurring boundaries between solar companies, financial institutions and telecoms, as well as the growing use of the pay-as-you-go fintech model to sell a diverse range of consumer goods and services beyond solar home systems. The chapter concludes by attending to the justice implications of this increasingly financialised approach to disseminating solar products, highlighting contradictions from its articulated intent to address energy poverty, and its tendency to reproduce uneven patterns of development.