Uganda’s Tier 4 Financial Institutions Get ESG Training Boost for Sustainable Finance
Kampala, Uganda — In a major push towards green and responsible banking, aBi Finance, in collaboration with the Uganda Institute of Banking and Financial Services (UIBFS), has launched specialized training to help Uganda’s microfinance institutions and SACCOs embed Environmental, Social, and Governance (ESG) principles into their operations.
The training kicked off at Fairway Hotel in Kampala from May 5–7, 2025, and is part of a broader strategy to position Uganda’s Tier 4 financial institutions at the forefront of sustainable development and climate resilience.
ESG Training to Tackle Uganda’s Development Needs
The ESG integration sessions are designed for board members and senior executives, helping them develop policies that align with sustainable development goals. David Kaweesi, aBi Finance’s Investment Manager for Financial Services Development, emphasized the goal is to foster inclusive and climate-resilient financing — from solar irrigation for farmers to eco-friendly energy projects and gender-inclusive lending.
“This isn’t just about compliance — it’s about building resilient institutions that can support Uganda’s development,” Kaweesi noted.
A National Initiative with 18 Training Sessions
The program includes 18 sessions across Uganda, with 12 focused on Tier 4 institutions and 6 tailored for media professionals to drive ESG awareness and accountability.
Key areas include:
- Climate adaptation finance (supporting drought-resistant crops, solar-powered irrigation, and water harvesting)
- Mitigation finance (funding clean cookstoves, electric motorcycles, and eco-waste systems)
- Biodiversity finance (loans for agroforestry, eco-tourism, and wetland restoration)
Building on Existing Strengths
According to Cassius Musasira, a UIBFS facilitator, many institutions already practice ESG in informal ways—by funding clean energy or supporting women’s cooperatives. The training formalizes these practices and scales them across the sector.
“ESG aligns naturally with African values,” Musasira said. “When SACCOs back organic farming or solar-powered dryers, they’re already promoting sustainability.”
Why ESG Matters Now More Than Ever
Trainers highlighted the risks of ignoring ESG, such as loan defaults from climate disasters or reputational damage due to unethical lending. On the flip side, adopting ESG opens doors to:
- Green investments
- Stronger customer loyalty
- Better resilience to regulatory shifts
Driving Uganda’s Financial Inclusion Goals
By equipping microfinance institutions with ESG tools, the initiative aims to deepen financial inclusion, support climate adaptation, and build long-term resilience in underserved communities across Uganda.
This effort places Tier 4 lenders at the heart of Uganda’s green transition — empowering them to finance tomorrow’s change today.
