BIO disburses loan to ECS in Uganda

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BIO has disbursed a the first USD 500,000 of a USD 1 million senior loan to Electrical Controls and Switchgear (ECS) in Uganda. The company started in 1983 as an importer and trader of electrical switchgear and panels. These products are essentially the interfacing equipment between the power service utility provider and a final consumer power income in industries, factories or commercial installations, transforming voltage for consumption use. ECS has gradually phased out importation of fully assembled switchgear and has now become a local designer, manufacturer and supplier of this product.

BIO provides the necessary funding to allow ECS to diversify its products, namely manufacturing of low to middle voltage distribution transformers. This type of transformers provides the final voltage transformation in the electric power distribution system, stepping down the voltage used in the distribution lines to the level used by the customer. As a consequence, ECS will no longer need to import the transformers.

ECS’ development of this new project has a significant impact in Uganda: new jobs will be created to man the new line of business; dependence on imports is reduced as local production increases; profits will be reinvested in Uganda and the company will generate increased state revenues. The project is also an energy efficient project, as the use of distribution transformers reduces technical energy losses considerably.

Read more on the investment here.