Commercial banks and other financial institutions in Uganda have made commitments to provide funding for businesses and projects that promote environmental conservation and renewable energy.
These institutions have taken steps to train their staff in assessing projects that support sustainable agriculture, energy efficiency, renewable energy, drip irrigation, clean transportation, and other eco-friendly initiatives.
Ms. Virginia Semakula, the manager for energy, environment, and climate change at Equity Bank Uganda, emphasized that through capacity-building training, they can identify environmentally friendly investments and categorize them accordingly.
The training workshop on green financing was organized by aBi Finance Ltd for financial institutions in Kampala, Wakiso, and Mukono districts. Ms. Semakula believes that the green finance initiative is scalable when all stakeholders understand its dynamics.
Mr. Pastori Kamoga from Development Microfinance in Ssonde, Mukono, expressed that while Environment and Social Governance (ESG) practices are optional in Uganda, it’s essential for all lenders to have policies at all levels of investment decisions. He welcomed aBi Finance’s involvement, providing support to diversify into green financing and sharing the risks associated with such initiatives.
The training sessions aim to help investors make informed decisions that align with their values and contribute to sustainable development.
Mr. Barnabas Nitusiima, the credit supervisor at Pride Microfinance, Kisoro Branch, highlighted the importance of green finance funding, emphasizing sustainability and enabling clients to use the environment responsibly.
aBi Finance Ltd launched up to 20 green finance capacity-building sessions for staff in partner financial institutions, underscoring the significance of green finance in driving positive outcomes. The institution also introduced the Green Finance Fund and Green Taxonomy, valued at Shs120 billion, to promote sustainable investment in the sector.
In addition to training initiatives, aBi Finance will collaborate closely with partner financial institutions to develop green finance education materials. This collective effort aims to advance environmental conservation and renewable energy while encouraging responsible and sustainable investment practices in the sector.
