The Governor of the Bank of Uganda, Dr Michael Atingi-Ego, has called for urgent and strategic collaboration between public and private sector actors to accelerate climate finance mobilisation and build resilience against climate-related risks.
Speaking at the first-ever National Private Sector Engagement Forum on Climate Finance (NaPSEF), held at Serena Hotel in Kampala recently, Dr Atingi-Ego emphasised that climate change is no longer a future threat but a present and escalating challenge, affecting Uganda’s rainfall patterns, food systems, energy supply, and financial stability.
“In FY 2019/20 alone, Uganda suffered over USD 154 million in losses due to weather-related disasters,” the Governor noted. “Yet within this challenge lies a profound opportunity to align finance with sustainability.”
The forum brought together senior officials from the Ministry of Finance, financial institutions, development partners, and private sector representatives to promote climate finance as a core pillar of Uganda’s socio-economic transformation agenda.
Redefining the role of the Central Bank
Highlighting the Bank of Uganda’s revised mission—“To promote price stability and a sound financial system in support of socio-economic transformation in Uganda”—Dr Atingi-Ego said the central bank was committed to shaping a climate-resilient financial sector aligned with Vision 2040.
He outlined a comprehensive roadmap the Bank is implementing to embed climate considerations into Uganda’s financial system: Environmental, Social and Governance (ESG) Framework: Launched in June 2024, this framework guides supervised financial institutions in integrating ESG principles into governance and risk management; Climate Risk Guidelines: Soon to be released, these will provide clarity on how banks can identify and manage climate-related risks and Climate Stress Testing: Developed with the Network for Greening the Financial System (NGFS) to assess the banking sector’s resilience under climate scenarios.
others include; National Green Taxonomy: In development with the Ministry of Finance and other partners, to define what qualifies as a green investment and curb greenwashing; Green Finance Capacity Building: Training initiatives are ongoing in partnership with the Uganda Bankers Association (UBA) and the Uganda Institute of Banking and Financial Services (UIBFS), including a specialised Green Finance Curriculum and Financial Inclusion Strategy (NFIS II, 2023–2028): This policy prioritises building an inclusive green finance market, particularly for underserved groups.
A Strategic opportunity for the banking sector
Dr Atingi-Ego urged financial institutions not to see ESG integration as a regulatory hurdle but as a strategic advantage.
“It’s not a burden, it’s a business imperative,” he said. “Profitability and sustainability are no longer mutually exclusive.”
He encouraged banks to develop Sustainable Finance Frameworks, define exclusion lists, and engage third-party ESG reviewers to ensure transparency and credibility. Training is underway to support banks in implementing these reforms effectively.
“Climate finance is not charity – It is investment”
Echoing the words of UN Secretary-General António Guterres, Dr Atingi-Ego said climate finance should be seen as an investment in Uganda’s resilience and future prosperity.
“We call on universities, research institutions, regulators, and development partners to support this transition by building ESG knowledge and practice across the sector.”
The Governor reaffirmed the central bank’s support for innovative financial tools such as green bonds, carbon markets, blended finance, and climate-resilient insurance, which he said will play a key role in unlocking new sources of growth.
In his concluding remarks, he urged the private sector, particularly members of the UBA, to seize the moment and become champions of sustainable finance.
“By aligning our financial systems with the realities of climate change, we will secure a prosperous and resilient future for all Ugandans.”
