aBi Finance is empowering Uganda’s leading microfinance institutions and SACCOs to integrate Environmental, Social, and Governance (ESG) principles into their operations through a targeted training program.
Delivered in partnership with the Uganda Institute of Banking and Financial Services (UIBFS), the initiative aims to foster sustainable growth and promote responsible financial practices.
The program kicked off with a series of sessions held at Kampala’s Fairway Hotel from May 5–7, 2025, and reinforces aBi Finance’s commitment to strengthening Uganda’s financial sector. It builds upon prior efforts such as the launch of the Green Finance Fund, support for the development of the ESG framework for Bank of Uganda-regulated financial institutions, and a range of green finance initiatives.
David Kaweesi, Investment Manager for Financial Services Development (FSD) at aBi Finance, noted that the training addresses growing demand from financial institutions eager to embed ESG into their operations.
“Our goal is to equip board members and senior executives with the expertise to set the tone, craft ESG-aligned policies, and embed ESG principles across their institutions—from financing climate-smart agribusinesses and clean energy transitions, to advancing social inclusion and strengthening risk management,” said Kaweesi. “This will drive sustainable business growth and deliver meaningful community impact.”
The training is part of a nationwide capacity-building initiative, with 18 sessions planned across Uganda’s key regional centers during May 2025—12 tailored for Tier 4 leaders and six specifically designed for media professionals.
A central focus is green and sustainable finance, with practical examples tailored to Uganda’s local needs. In the area of climate adaptation finance, participants explored funding solutions for smallholder farmers adopting drought-resistant crops, solar-powered irrigation systems, and water-harvesting technologies—essential tools to combat erratic weather patterns.
For climate mitigation, the training highlighted support for clean energy transitions, such as SACCOs offering affordable financing for solar-powered irrigation, energy-efficient cookstoves, eco-friendly waste management systems, and e-mobility solutions like electric motorcycles. These initiatives reduce carbon emissions while providing cost-effective alternatives for underserved communities.
The program also emphasized biodiversity conservation finance, showcasing how financial institutions can support projects such as agroforestry loans, eco-tourism ventures, and sustainable land management. Examples included financing beekeeping cooperatives near forest reserves and supporting wetland restoration to sustain local livelihoods.
During the Kampala sessions, UIBFS facilitator Cassius Musasira observed that many Tier 4 institutions already engage in ESG-aligned practices informally, such as financing clean energy projects or backing community initiatives.
“ESG aligns with African cultural values,” Musasira emphasized. “When a SACCO lends to a women’s group practicing organic farming, or a microfinance institution prioritizes loans for solar dryers, they’re already advancing sustainability. This training helps standardize and scale such efforts.”
Why ESG Matters for Tier 4 Institutions
The program underscored the risks of ignoring ESG principles, including loan defaults from climate-related shocks and reputational harm from unethical lending. Conversely, embracing ESG opens access to green investment, strengthens customer trust through ethical practices, and builds resilience against evolving sustainability regulations.
By embedding ESG principles, Uganda’s Tier 4 financial institutions can better serve their communities while advancing financial inclusion and sustainable development.
