The Bank of Uganda (BoU) and the European Investment Bank (EIB) have signed a collaboration agreement aimed at strengthening Uganda’s financial sector capacity to manage climate-related risks and support sustainable investments.
The agreement under the Greening Financial Systems Programme was signed at Kampala Serena Hotel, with Bank of Uganda Deputy Governor Prof. Nuwagaba taking part in the ceremony.
The collaboration will strengthen the central bank’s ability to support supervised financial institutions in identifying, assessing, managing and disclosing risks associated with climate change.
Speaking at the event, Prof. Nuwagaba said the initiative could help Uganda mobilise the estimated US$28.1 billion required to finance climate action by 2030.
He said the country needed a financial system that could respond to emerging climate risks while ensuring businesses and other productive sectors continued to access financing.
“We must strengthen resilience without unnecessarily constraining access to finance. Our objective is a financial system that understands emerging risks, allocates capital into sustainable projects, and continues to finance productive activity,” Nuwagaba said.
He thanked the EIB, the European Union, and the governments of Germany and Luxembourg for supporting Uganda’s efforts to build a greener, more resilient and sustainable financial system.
Uganda joins Kenya, Rwanda, Nigeria and Ethiopia among the African countries receiving support under the Greening Financial Systems Programme.
The initiative is expected to contribute to a financial sector better equipped to assess climate-related risks and direct financing towards sustainable projects while maintaining access to credit for productive economic activities.
Below is the Deputy Governor’s detailed :
