Ugandan businesses have been urged to urgently align with emerging sustainability standards as the region moves toward mandatory Environmental, Social, and Governance (ESG) compliance, following the second annual East Africa ESG Summit convened by Capital One Group (COG).
The high-level virtual summit, held on June 11, 2026, brought together corporate leaders, board members, chief financial officers, and policy actors at a critical moment for the region’s evolving regulatory landscape.
Held under the theme “ESG as the Capital of Sustainability: From Commitment to Delivery,” the meeting comes ahead of a major policy shift, with the Bank of Uganda set to enforce mandatory ESG reporting for all financial institutions starting January 2027.
The new framework effectively shifts ESG from a voluntary corporate social responsibility initiative into a core regulatory and operational requirement. Financial institutions will be required to integrate climate risk, social responsibility, and governance standards into their decision-making processes.
Because banks serve as the primary gatekeepers of capital, the new rules are expected to trigger far-reaching effects across the economy. Businesses without credible sustainability data risk facing stricter lending terms, higher risk pricing, or exclusion from access to credit altogether.
The transition mirrors a broader continental trend. Countries such as South Africa, Zimbabwe, Egypt, and Tunisia already enforce mandatory ESG disclosures for listed firms, while Ghana and Nigeria have adopted International Sustainability Standards Board (ISSB) frameworks. In East Africa, Tanzania introduced mandatory climate disclosures in 2025, while Kenya began ESG reporting requirements for public interest entities in January 2026.
“With mandatory reporting for Public Interest Entities starting in 2027, companies cannot afford to wait,” said Elvis Moenga, Manager for Standards and Technical Services at the Institute of Certified Public Accountants of Kenya (ICPAK).
He noted that companies are now required to undertake comprehensive Sustainability Reporting Readiness Assessments, including evaluating governance structures, data systems, and risk management frameworks.
Speakers at the summit emphasized that ESG is rapidly becoming a business survival issue rather than a public relations tool.
“ESG is no longer a matter of corporate goodwill. It is now a prerequisite for accessing capital, attracting investors, and remaining competitive,” said Paul Mwirigi Muriungi, Managing Director and Head of Strategy at COG EA Ltd.
He warned that many Ugandan firms still misunderstand ESG, despite the limited time left before enforcement begins.
The summit also addressed concerns around “greenwashing,” with experts calling for authentic, data-driven reporting rather than superficial compliance.
“We cannot simply import Western ESG frameworks without adapting them to local realities,” said Ernest Ssekisonge, Managing Director at Kasi Insight. “We must develop context-specific approaches that reflect Uganda’s economic and operational environment.”
Participants were equipped with practical tools to begin tracking sustainability data, strengthening internal governance, and aligning business models with upcoming regulatory expectations.
Originally planned as a physical gathering, the summit was held virtually due to Ebola-related travel restrictions affecting regional speakers. Despite this, organisers reported strong participation, with more than 70 professionals attending.
The initiative was supported by Radio One FM 90, Kasi Insight, and ICPAK. Organisers also announced that ESG awards will be presented on July 16 during a private engagement, while an ESG Club will be launched to sustain dialogue and collaboration beyond the annual summit.
