FORT PORTAL CITY, Uganda — Leaders of financial institutions across Uganda are undergoing training in Environmental, Social, and Governance (ESG) skills, an initiative aimed at strengthening sustainability within the nation’s financial sector. aBi Finance Limited, in partnership with the Uganda Institute of Banking and Financial Services (UIBFS), provided this capacity building to top management and board members of Savings and Credit Cooperative Organizations (SACCOs) and microfinance institutions, particularly those operating without defined ESG frameworks. The training took place Thursday at Kalya Courts in Fort Portal City.
David Kaweesi, Investment Manager for Financial Services at aBi Finance, emphasized the crucial role these institutions play due to their direct connection to individual farmers.
“These are the institutions closest to the grassroots, and individual farmers rely on them for financial services,” Kaweesi said. He pointed out that unlike regulated, larger financial institutions, many of these entities operate without structured ESG guidelines.
Kaweesi highlighted pressing challenges such as climate-induced losses, loan defaults linked to environmental disruptions, and job security issues driven by artificial intelligence. He stressed that ESG is a practical tool designed to help financial institutions align with sustainable practices.
“The core objectives of ESG are to ensure that as financial institutions develop and offer products, they promote environmental protection and social responsibility,” he explained.
Participants in the training explored topics such as promoting social inclusion, enhancing governance to reduce loan defaults, and addressing environmental sustainability. Discussions also included innovative green financing products, such as solar loans.
Henry Segawa from UIBFS expressed optimism that the initiative would empower institutions to effectively adopt and implement ESG strategies.
“We want to see financial institutions not just survive but thrive sustainably. Green energy products and sustainable policies will be key going forward,” he stated.
Wilberforce Lugemwa, Chairperson of Bagez SACCO in Mubende district, admitted that while some social and governance practices had been implemented, the environmental aspect was largely overlooked.
“One of the key lessons for us is to avoid financing activities that harm the environment and to begin formulating policies that fully embrace ESG principles,” Lugemwa said.
Susan Mbambu, Manager of Karambi SACCO in Kasese district, shared how climate change has severely affected agricultural productivity in her region.
“Our farmers have been battling droughts and floods, which has impacted loan repayment rates,” she noted. “This training has inspired me to raise awareness among our members about environmental conservation and sustainability.”
aBi Finance continues to support agricultural finance through lines of credit, loan guarantees, and institutional capacity building. With ESG now a key focus, Uganda’s financial institutions are being empowered to grow responsibly while safeguarding the environment and the communities they serve.
