KAMPALA, UGANDA – MAY 5 – aBi Finance on Monday commenced an extensive training program aimed at equipping Tier 4 financial institutions across Uganda with essential Environmental, Social, and Governance (ESG) skills.
The initiative, the first of 18 planned sessions, is being delivered in partnership with the Uganda Institute of Banking and Financial Services (UIBFS) and kicked off at Fairway Hotel in Kampala.
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The program targets smaller financial institutions, which currently operate without a specific ESG framework unlike their larger counterparts regulated by the Bank of Uganda.
Noah Owomugisha, Head of Impact and Sustainability at aBi Finance, stressed the urgency of addressing ESG factors, citing climate-related losses, loan defaults linked to environmental changes, and the impact of artificial intelligence as pressing concerns.
“ESG and sustainability are not some distant concern,” Owomugisha said. “You are already experiencing the impacts – losses due to climate-related events, bad loan portfolios affected by environmental changes, and even job security concerns related to AI. These are real issues we need to address.”
aBi Finance offers three core products: lines of credit for on-lending, guarantees covering a significant portion of agricultural loans, and comprehensive capacity building. It is this capacity-building arm that forms the crux of the current nationwide engagement.
The program will cover a range of topics, including supporting branch expansion into unbanked areas like refugee settlements, promoting social inclusion, ensuring good governance to minimize loan defaults, and addressing environmental sustainability in the face of climate change.
“Our capacity building efforts are comprehensive. For example, if you identify unbanked but critical populations, such as refugees, we can discuss supporting your branch expansion into those areas. We also train your staff on aspects beyond basic credit, including social inclusion, good governance to minimize loan defaults, and the critical issue of environmental sustainability in light of climate change,” Owomugisha said. “Our goal is to ensure responsible and impactful financing.”
Moses Bwire, an Investment Manager overseeing Green Growth and Business Development Services at aBi Finance Limited, emphasized the core objective of the training.
“The core idea of ESG is to ensure that as financial institutions develop and offer products, they encourage environmental protection,” Bwire told reporters.
“Sustainability, in this context, means that as financial institutions generate profits, they must also prioritize the well-being of the environment, the people they serve, and ensure sound governance practices.”
Bwire noted that while Tier 1-3 institutions adhere to ESG guidelines developed by bodies like the Uganda Bankers Association (UBA), a similar framework is absent for Tier 4 entities.
This training seeks to bridge a crucial knowledge gap,” he said.
“We’ve identified a knowledge gap, particularly within Tier 4 institutions, which is why we’ve invited them from across the country for this training,” Bwire said. The program also includes media representatives to foster informed reporting on ESG issues.
Addressing the financial constraints often faced by Tier 4 institutions in implementing ESG practices, Bwire pointed to the growing interest from both local and international funders in organizations with strong sustainability credentials.
He emphasized that the sessions aim to equip board and executive committee members with the necessary knowledge to effectively embed ESG principles into their operations and governance.
Participants shared their perspectives on integrating ESG.
Mr. William Atalyeba Ateenyi, Director of Operations at Wazalendo SACCO (WSACCO), a significant cooperative for the Ministry of Defence and Veteran Affairs and the Uganda People’s Defence Forces, outlined his organization’s initial steps.
“At Wazalendo SACCO, we’ve already taken initial steps towards ESG integration. Firstly, we included ESG as a strategic priority in our strategic plan. Secondly, we allocated 0.5% of our surplus from the last financial year, 2024, specifically for ESG implementation,” Mr. Atalyeba said. He acknowledged the need for further technical expertise, expressing confidence that the aBi Finance training would provide valuable guidance.
Roger Mugisha Shilling, Head of Corporate Affairs at Letshego Uganda Limited, underscored the fundamental importance of ESG for long-term business viability.
“ESG isn’t just a reporting tool; it’s a way to future-proof our business,” Shilling stated. He stressed the necessity of developing products and services that benefit communities, build stakeholder trust, and ensure future relevance. Citing a global KPMG study identifying ESG as a key concern for CEOs, Shilling urged wider adoption of these principles across the Ugandan and African business landscape.
The comprehensive training program will consist of 18 sessions, with 12 tailored for leaders of Tier 4 financial institutions and six for media professionals.
These sessions will be held in various locations across Uganda, including Kampala, Mbarara, Fort Portal, Hoima, Masaka, Jinja, Gulu, and Arua and will run from Monday through May 23.
This initiative by aBi Finance, with training delivered by the UIBFS, represents a significant effort to strengthen the sustainability practices of smaller financial institutions in Uganda, contributing to a more robust and responsible financial sector overall.
