aBi Finance, together with key sector partners, has launched two major initiatives aimed at strengthening sustainability standards across Uganda’s financial sector.
The IFRS S1 & S2 and GRI Capacity Building Programme and the Tier IV ESG Framework Development Project mark a significant step toward institutionalising environmental, social, and governance (ESG) principles within financial systems.
The launch event, held at Four Points by Sheraton Kampala, was presided over by Michael Atingi-Ego, the governor of the Bank of Uganda.
The newly launched initiatives are designed to address critical gaps in sustainability reporting and ESG integration across financial institutions.
The IFRS S1 & S2 and GRI Capacity Building Programme, implemented in partnership with the Uganda Bankers Association, will strengthen the ability of financial institutions to report on climate-related risks and sustainability performance. The programme aligns Uganda’s banking sector with globally recognised disclosure standards.
The Tier IV ESG Framework Development Project, delivered in partnership with the Association of Microfinance Institutions of Uganda, will support microfinance institutions in integrating ESG principles into their operations, improving their capacity to sustainably serve vulnerable and underserved communities.
Dr. Atingi-Ego emphasised that the initiatives represent a critical shift in how Uganda’s financial sector understands and manages risk.
“IFRS S1 and S2 require institutions to go beyond traditional financial reporting and integrate climate and sustainability considerations into governance, strategy, and decision-making. This strengthens transparency and positions Uganda to attract long-term investment, including climate finance,” he said.
He added that as Tier IV institutions continue to formalise, ESG integration will be essential for building trust, improving governance, and expanding access to funding while advancing financial inclusion.
Addressing ESG gaps in the sector
Ronald Ocheng, a Senior Research Officer at the Uganda Bankers Association, highlighted existing gaps in ESG implementation, noting that many institutions perform better in governance than in environmental and social areas and often lack sufficient evidence to support reported performance.
“Many institutions perform better in governance than in environmental and social areas, and in some cases lack sufficient evidence to support reported ESG performance, raising concerns about credibility,” he said
“This programme is designed will build practical capacity across institutions while supporting compliance with upcoming reporting requirements and strengthening the sector as a whole,” he added.
Jackline Mbabazi, Executive Director of the Association of Microfinance Institutions of Uganda, highlighted the importance of tailoring ESG approaches to the realities of Tier IV institutions, noting that the new framework will strengthen governance, promote responsible lending, and embed environmental stewardship across community-based financial systems.
“Tier IV ESG Framework will provide a practical and context-specific approach that reflects the capacity and operational realities of Tier IV institutions, while reinforcing governance, promoting responsible lending, and strengthening environmental stewardship,” Mbabazi said.
Signe Winding Albjerg, Danish Ambassador to Uganda, stated the importance of long- term partnerships and coordinated action in addressing interconnected challenges such as climate change, financial inclusion, and sustainable growth, highlighting Denmark’s continued commitment to supporting Uganda through institutions like aBi Finance.
“No single institution or partner can address today’s interconnected challenges alone. Through long-term partnerships, we have demonstrated that patient and well-structured finance can unlock investment, expand inclusion, and improve livelihoods, and these new initiatives are an important step in strengthening a more sustainable and resilient financial system,” she said.
Through signed memoranda of understanding, partners reaffirmed their commitment to collaboration and to mainstreaming ESG practices across Uganda’s financial sector.
“At aBi Finance, we remain committed to being a partner to the sector, supporting innovation, building capacity, and driving inclusive growth and sustainability,” said Mona Muguma Ssebuliba, Chief Executive Officer of aBi Finance.
Building on a decade of impact
The initiatives build on more than a decade of investment by aBi Finance and its partners to advance sustainable finance in Uganda, particularly in agriculture and inclusive lending.
To date, these efforts have reached over 2.2 million farmers, more than 70 percent of whom are women, with 42 percent youth participation. Outreach in Northern and Eastern Uganda has also expanded significantly, while over 300,000 jobs have been created.
The two initiatives align with Uganda’s ambition to grow its economy to USD 500 billion by 2040, driven by agro-industrialisation, inclusive finance, and sustainable investment.
