Business & Management
Academicians Retooled on the System of Environmental-Economic Accounting (SEEA)
By Jane Anyango
Over 30 members of the academia comprising staff and graduate students from Makerere University School of Economics, Muni University and Makerere University Business School on 28th September, 2021 converged for a training on the System of Environmental-Economic Accounting (SEEA).
The blended seminar held physically and virtually was organized by the Environment for Development Initiative (EfD-Mak) Centre facilitated by the Makerere University don, who is also Research Fellow at the EfD-Mak center and Fulbright Scholar Dr. Nickolas Kilimani.
Dr. Kilimani streamed live from the USA on the System of Environmental-Economic Accounting focusing on the Integrated Water Resources Management, Policy Analysis and Decision making.
Dr. Kilimani highlighted the recent developments in Environmental-Economic Accounting in Uganda, the System of Environmental-Economic Accounting and its objectives, Water resources accounting modules and the role of Water Accounting in Integrated Water Resources Management (IWRM).
Dr. Kilimani observed that the national economic policy has been underpinned by macroeconomic theory and the necessary statistics are collected and arranged using the System of National Accounts (SNA) which covers all economic activity from production to consumption and accumulation, and all industries using the Gross Domestic Product (GDP) as the key indicator.
He noted that the basic theoretical foundation of the SNA has not changed since 1953 even with the detail that has evolved with technological, economic and social change adding that, for more than 70 years, governments and business have used the information from the SNA as an information source in economic analysis and policy.
“The SNA does not adequately account for the environment and yet economic activity can adversely drive both observed and unobserved changes in it. The System of Environmental-Economic Accounting (SEEA) aims to address the deficiency of the traditional national accounting (the SNA) by accounting for the environment and linking it to environmental information through common concepts, definitions and classifications” Dr. Kilimani stated.
Compared to the SNA, Kilimani said, the SEEA is not yet widely used in decision making, partly because, it has recently been adopted as an international standard.
Dr. Kilimani said the objectives of SEEA are to develop a consistent data system for economic and environmental data and provide a common system to derive indicators and measure sustainable development.
He explained that the SEEA provides a better measure of national wealth to include not only produced capital but also natural capital, and assesses availability of natural resources, their use in production and final consumption and the cost of depletion. In addition Kilimani said, SEEA assess the level and cost of emissions and other waste from production and consumption and identifies monetary flows related to the environment which are already within the SNA (e.g., expenditures on environmental protection, environmental taxes and subsidies,etc.)
Dr. Kilimani underscored the role of Water Accounting in Integrated Water Resource Management (IWRM) noting that the growing pressure on water resources and high uncertainty on future water availability have caused the urgent need for better planning and management.
He emphasized that water is not only essential to cover basic needs for humans and the environment that underpins them, it is also a key factor for the economic development of diverse sectors with conflicting interests as regard to its use.
“The IWRM paradigm is considered a good approach to deal with those complexities. It proposes a coordinated utilization of water and land resources to support economic and social development without compromising environmental sustainability.
It recognizes that water management is a key aspect since human intervention is the trigger for all trade-offs and conflicts around water. IWRM highlights the influence of catchment management on water resources quantity and quality, as well as the need to preserve the natural capital for future generations.” He added.
Dr. Kilimani said Water management is considered a social, economic, and political issue rather than just technical and therefore, stakeholder involvement in water management is needed and this translates into legal requirements for public participation and transparency in water governance.
“The value of water, the opportunity costs of its allocation, or the costs of making it available should be known and recognized in order to incentivize water use efficiency. The implementation of those legal requirements calls for making information about water publicly available in a clear and accessible way. In this sense, water accounting emerges as a useful tool to promote efficiency and transparency in water resource planning and management”, Kilimani stated.
The current and proposed framework for IWRM in Uganda
Dr. Kilimani said the existing institutional and policy framework shows the multiple institutions charged with the management of water resources in Uganda, but, there is a need for an explicit connection between water sector policies and those of the social-economic sectors, since water resources are a key input into the country’s economic and social sectors.
“The institutional framework in Uganda, provides for a key component such as Water for Production. Institutions in charge of managing the productive sectors of the economy, i.e., MoFPED, (MAAIF), and the MTTI need to link their development plans and policies with those of the water sector. A sound national water policy should relate the different development plans of the social-economic sectors in an explicit manner”. Kilimani said.
In the (2015) paper, Dr. Kilimani and other researchers proposed a framework for policy analysis which relates the development plans for the different social-economic sectors to those of the water sector.
This framework he said is aimed at providing policy analysis of IWRM in a typical economy by linking e.g., agriculture, industry, households, hydro-electricity and navigation which are key sectors that primarily depend on water.
The don explained that development plans in these sectors involve several policy variables and inputs. Therefore, the interaction between the policy variables and their impacts are monitored through multiple indicators in the social-economic and ecological domains.
“Given the multiplicity of variables, the SEEA framework uses aggregated water data as do the existing approaches for analyzing the associated policy impacts.
Computable general equilibrium (CGE) models also use aggregation and hierarchical decomposition in order to simplify model development and data compression to manageable sizes.
While the aggregation hides some of the temporal and spatial variability, it still preserves the fundamental trends that help to provide needed answers by policy-makers”, Kilimani said.
SEEA, a new area of interest to academicians and the Government of Government
The Director EfD-Mak Center Prof. Edward Bbaale described the seminar as the most exciting because it brought on board a new area which is of interest to the Government of Uganda.
Prof. Bbaale said, Uganda Bureau of Statistics, the National Planning Authority and other partners are trying to work on the system of Environmental-Economic Accounting away from the conventional system of National Accounting.
“Our System of National Accounting is deficient in incorporating Environmental aspects because as we produce and consume, then in one way or another, we are depleting the environment which we refer to as natural capital and this natural capital is all the time depreciating but there is no way in our conventional GDP measurements that, but now, this new system is solution to this”, Prof. Bbaale stated.
From the academic perspective, Prof. Bbaale commended the facilitator for showing participants how to undertake the System of Environmental-Economic Accounting and ably bringing participants on board in terms of the key variables that are important in this new system specific to the water sector.
The Director appreciated Dr. Kilimani for exposing participants to the policy, non-policy and the output variables and giving tips on some methods such as the Computable general equilibrium (CGE) which can be utilized to understand the impact of a policy decision on the rest of the economy in terms of the social, economic and environmental outcome.
“The lesson here is that we need to invest our time into understanding this new System of Environmental-Economic Accounting as a way of incorporating new ventures in our research as economists and academicians. And to our graduate students, this is an area worthy of investing their time and I am glad that a number of graduate students attended this seminar”, Prof. Edward Bbaale said.
Prof. Bbaale said, a number of reports are already out and that SEEA is an area which is very virgin, where very limited research has been undertaken partly because of lack of numbers that incorporate the environment into the entire national analysis.
“But now, some strides have been taken, some milestones are being achieved and if our own, Dr. Nickolas Kilimani with a Fulbright Scholar in the US is having all these on his fingertips, it is a huge resource to Makerere University, to our country and it is a starting point of deeper analysis into how the environment is being affected when we are doing our production and consumption activities”, Prof. Bbaale said.
He reported that the seminar was quite intriguing and important for national policy and pledged to arrange to involve policy makers from the Ministry of Water and Environment and the National Water and Sewerage Corporation in the next seminar.
Participants comment on the seminar
Makerere University PhD student from the School of Economics Alex Aliga, who is also a lecturer at Muni University Uganda said the seminar was timely.
“It has enriched many of the things that I had learnt in class and I had taken for granted. The System of Environment and Economic Analysis though new is very important and interesting because once you begin to understand Natural Resource Accounting and integrate it into GDP, then we get to understand the full value of our resources. In that case, it means that we may actually be richer than what we thought we are. Some of these things are not easy to bring to the GDP which is the measure of our national economy.
I got many lessons; – understanding how you can apply the theoretical things into practical and to influence policy is very important for our country. Given the fact that our resources are under attack, climatic change and environmental issues are real, we need this knowledge so as to be able to sustainably use our resources for a better future”, Mr. Aliga said.
Dr. Paul Edabu, a Senior Lecturer at Muni University said:
“The day’s seminar was an eye opener to the current situation in Uganda bearing in mind that we have two blocks of people who are in accounts and economics and there is no integration even in our ministries.
Our country is at a paradox, today people are restricted to cut trees from the forests and also carrying out farming in the wetlands and the next day, a factory is erected in the wetland. This seminar is timely and something I had yearned to learn because it incorporates the environment as a key resource into the national accounting system”, Dr. Edabu commented.
SEEA and the Government of Uganda
Government of Uganda (GoU) is moving towards resource-led industrialization by developing a set of natural capital accounts under the Uganda Natural Capital Accounting (NCA) program. The National Biodiversity Strategy and Action Plan (NBSAP), National Development Plan, and Uganda Green Growth Development Strategy (UGGDS) recognize the challenges of development planning without accounting for its effect on natural resources, many of which are non-renewable.
In cognizance of the above, GoU with her development partner UNEP with its World Conservation Monitoring Centre arm is working with the Darwin Initiative to develop Natural Capital Accounts for Uganda.
The project is aligned with existing initiatives on natural capital accounting, i.e., the Gaborone Declaration for Sustainable Development in Africa, the UN project on Natural Capital Accounting, and the World Bank Wealth Accounting and the Valuation of Ecosystem Services programme.
The Uganda Bureau of Statistics (UBOS) Ministry of Water and Environment, and Ministry of Lands, Housing and Urban Development commenced with the development of land accounts and Water accounts in 2019. Under the NCA program, the country launched the Wood Asset and Forest Resources Accounts.
Natural Capital Accounting effort is based on the international statistical standard, System of Environmental-Economic Accounting (SEEA).
Jane Anyango is the Principal Communication Officer, College of Agricultural and Environmental Sciences (CAES)
Business & Management
Uganda Launches Policy Briefs on Natural Capital Accounts to position Nature at the Centre of Economic Planning
Uganda has launched five policy briefs on Natural Capital Accounts aimed at integrating the value of the country’s forests, wetlands, water resources, land, energy systems and ecosystems into national economic planning and decision making.
The Policy Briefs, developed by the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM) under the College of Business and Management Sciences, were launched on Wednesday 15th July 2026 at Makerere University.
The initiative brings together government, academia and development partners to promote climate-informed economic policies as Uganda pursues sustainable development and its economic transformation targets.
The five policy briefs address Uganda’s energy transition, declining wood stocks, natural capital integration into development planning, sustainable land use, and national water accounting amid climate change.
The five policy briefs include:
- Uganda’s Wood Stock on a Declining Pathway to Extinction: A Call for Policy Review and Action
- Uganda’s Energy System at a Crossroads: The Unsustainable Reliance on Biomass and the Need for Energy Transition
- Integrating Natural Capital into Development Planning in Uganda: Insights from the Ecosystem Service and Asset Accounts (1990-2015)
- Leveraging Land Natural Capital to Drive Uganda’s Sustainable and Inclusive Growth
- National Water Accounts Development: Tracking Uganda’s Progress amidst Climate Change.
Link to the Policy Briefs: https://bams.mak.ac.ug/policy-briefs/
Speaking at the Launch of the policy briefs, the Minister of State for Environment, Hon. Beatrice Atim Anywar who represented the Minister of Water and Environment, said natural capital accounting provides Uganda with a new approach to valuing its environmental resources.
“Today, we are launching a new way of seeing, planning and managing Uganda’s development,” Hon. Anywar said.
She noted that for years, Uganda’s economic progress has largely been measured through indicators such as Gross Domestic Product (GDP), which do not capture the decline or improvement of natural resources.
“But GDP does not tell us if our forests, water sources and wetlands are shrinking. It does not tell us if our forests can still hold our waters or whether our soils will still feed the next generation,” she said.
Hon. Anywar said Uganda’s natural capital, including forests, wetlands, water resources, biodiversity, minerals and fertile soils, supports livelihoods, tourism, energy generation and climate resilience. “This natural capital supports over 70 percent of our population and powers our hydropower. It feeds into tourism and buffers us against droughts and threatening floods,” she said.
She warned that degradation of these resources represents a loss of national wealth. “When natural capital is degraded, we are not just losing trees, wetlands, water or soils. We are losing wealth. We are losing jobs for our children and future generations,” she said.
The Minister said natural capital accounting allows Uganda to place nature on its economic balance sheet. “This is what natural capital accounting does. It puts nature on the balance sheet. I studied basic accounting, but I never imagined that natural resources could also be reflected on a balance sheet. Today, that is becoming a reality,” she said.
She challenged all stakeholders to ensure that every future development decision considers its impact on Uganda’s natural capital, stressing that informed choices today will secure sustainable prosperity for generations to come.
Hon. Anywar also called for recognition of the role communities play in protecting natural resources, saying traditional knowledge must complement modern science.
“Our ancestors protected the environment without maps, technology or scientific reports. They knew which areas were sacred, where water sources were protected and where forests should not be disturbed,” she said. “When communities understand that protecting a wetland or forest protects their own livelihoods, we will not need constant enforcement. People themselves will become protectors of nature,” she added.
Research Must Drive Policy Decisions
Delivering the opening remarks, the Vice Chancellor of Makerere University, Prof. Barnabas Nawangwe highlighted the event as a significant milestone in strengthening climate-sensitive economic planning.
He noted that the theme of the launch and dissemination workshop, “Advancing Climate-Informed Economic Policy for Sustainable Development in Africa,” aligns with the research-led agenda of Makerere University.
Prof. Nawangwe said the launch demonstrates the role of universities in generating evidence to support national development. “Today’s event demonstrates the power of collaboration between academia, government and development partners in generating knowledge that informs public policy and advances Uganda’s sustainable development agenda,” he said.
Prof. Nawangwe said the policy briefs provide evidence needed for integrating natural capital into national planning, budgeting and investment decisions. He said the University will continue strengthening research capacity to support Uganda and Africa.
Emphasizing the urgency of informed decision-making, he observed that Africa remains one of the regions most affected by climate change while experiencing rapid population growth, placing increasing pressure on natural resources. He stressed that research-driven policies are essential for achieving climate resilience and sustainable economic growth.
The Vice Chancellor commended the Government of Uganda, particularly the Ministry of Finance, Planning and Economic Development, on the country’s historic appointment as the first Co-Chair of the Coalition of Finance Ministers for Climate Action.
He recognised the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM) for advancing interdisciplinary research and strengthening Uganda’s position as a regional leader in climate-sensitive macroeconomic modelling and evidence-informed policymaking.
“The Centre continues to build the capacity of African researchers and policymakers while fostering partnerships with government institutions, development partners, regional organisations, and the private sector,” he said.
Strengthening Africa’s Climate Policy Research Agenda
Prof. Edward Bbaale, the Director of CEACM and the Principal, College of Business and Management Sciences (CoBAMS), reported on Makerere University’s investment in establishing specialised centres that address critical policy challenges facing Uganda and the African continent.
He stated that CEACM was established to respond to growing global demands for climate considerations to become part of national planning, budgeting and macroeconomic decision-making.
“The Centre is committed to producing high-quality policy-oriented research while strengthening the capacity of policymakers and practitioners to respond effectively to climate and economic challenges,” he said.
He explained that CEACM was established because climate change can no longer be separated from economic planning. “It is very important that national planning, budgeting, macroeconomic frameworks and fiscal policies are not oblivious to climate change, but instead fully integrate climate-related considerations,” he said.
He stated that CEACM’s work aligns with emerging global and continental initiatives, including the Coalition of Finance Ministers for Climate Action and the Pan-African Forum of Finance Ministers on Climate Action, underscoring the increasing role of finance ministries in integrating climate priorities into economic planning and fiscal decision-making.
Prof. Bbaale added that Makerere University had positioned itself as a partner to government through research, evidence generation and capacity building. “We could not stand aside. We have to be part of this global effort and contribute the much-needed evidence, research and capacity building to support the Ministry of Finance in executing this important responsibility,” he said.
He noted that Uganda’s role as the first African country to co-chair the Coalition of Finance Ministers for Climate Action had created an opportunity for local institutions to strengthen climate-sensitive economic modelling.
Uganda’s Progress in Integrating Natural Capital into Economic Planning
Representing the GGGI Country Representative, the Manager of Climate Finance, Mr. Arthur Ssebbugga-Kimeze commended Uganda’s efforts to integrate natural capital accounting into national economic planning. “This is a critical step towards climate-resilient and sustainable development,” he acknowledged.
The Manager of Climate Finance applauded the collaboration between Makerere University, the Ministry of Finance, Planning and Economic Development, and development partners in generating evidence that supports informed policymaking.
He also recognised the Government of Denmark for its continued support in advancing climate-smart economic policies through the Denmark-EGP partnership.
Emphasizing the significance of natural capital as a key pillar of economic prosperity, Mr. Ssebbugga-Kimeze called for sustained investment in protecting these assets. “Uganda’s experience is increasingly informing climate finance and policy discussions across Africa through the Pan-African Finance Ministers’ Forum on Climate Action,” he added.
He called for strong partnerships among government, academia, and development partners to ensure that research continues to drive evidence-based policymaking and sustainable economic growth, reaffirming GGGI’s commitment to supporting Uganda’s green growth agenda.
Policy Briefs Must Move from Shelves to Decisions
Representing the Embassy of Denmark in Uganda, Ms. Nina Guldbæk van Leeuwen, Counsellor and Team Leader for Politics, Regional Affairs and Refugee Support, said natural capital accounting is critical for building climate-resilient economies.
She commended Uganda’s leadership as co-chair of the Coalition of Finance Ministers for Climate Action. “These policy briefs are crucial in enhancing the role of economic, fiscal and financial policies in addressing climate change in Uganda and Africa as a whole,” she said.
Ms. Van Leeuwen said reliable natural capital accounts enable finance ministries to integrate climate considerations into economic planning. “Ministries of Finance require these accounts to support macroeconomic modelling, which can only be developed through a strengthened and collaborative national statistical system,” she said.
She urged stakeholders to ensure the research informs actual decisions. “Let us ensure that these policy briefs do not remain on institutional shelves but are actively used to inform decisions and policies going forward,” she said.
Natural Capital Data will improve Economic Decision
The Acting Commissioner for Macroeconomic Policy at Uganda’s Ministry of Finance, Planning and Economic Development, Mr. Davis Vuningoma, called for climate change to be treated as a macroeconomic and fiscal challenge rather than solely an environmental issue.
“Climate risks pose significant threats to agricultural productivity, energy generation, infrastructure, government revenues, and fiscal stability,” he noted.
Mr. Vuningoma said natural capital accounting will strengthen Uganda’s ability to make informed economic decisions.
He warned that climate change poses economic risks that could affect Uganda’s fiscal space. “If we do not address these challenges, our fiscal space could shrink, and our ability to provide public services could be affected,” Mr. Vuningoma said.
He said Uganda’s natural resources have historically not been fully reflected in traditional economic measurements. “Uganda is richly endowed with natural capital, including forests, wetlands and water resources. However, traditional measures of economic performance have often failed to fully capture the value of these assets,” he said.
Mr. Vuningoma said the policy briefs provide practical options for government as Uganda seeks to expand its economy. “This is particularly important at a time when Uganda is pursuing ambitious economic transformation targets, including the goal of growing the economy tenfold and achieving a USD 500 billion economy,” he said.
Key Findings Highlight Pressure on Uganda’s Natural Resources
Presenting the highlights, Dr. Peter Babyenda, the Coordinator of CEACM, disclosed that the policy briefs highlight growing pressure on Uganda’s natural resources.
The Energy System at Crossroads brief found that traditional biomass accounts for about 87 percent of Uganda’s final energy consumption, highlighting continued dependence on firewood and charcoal.
The Wood Stock Declining Pathway brief found that Uganda’s national wood resources declined by 45 percent between 1990 and 2015, with projections warning of possible exhaustion of available wood supply between 2032 and 2040 under current trends.
The Land Natural Capital brief identified unsustainable agricultural expansion, deforestation and urbanisation as major drivers of land degradation.
The Ecosystem Services and Asset Accounts brief noted that although the monetary value of ecosystem assets increased between 1990 and 2015, natural capital value per person declined by 17.7 percent due to population growth.
The National Water Accounts brief highlighted agriculture as the largest water user, accounting for 55.4 percent of total water abstraction in 2024, while warning of increasing climate risks.
Panel Discussion: Advancing Climate-Informed Economic Policy for Sustainable Development in Africa
Moderated by Prof. Edward Bbaale, the session featured the following panellists: Dr. Ronald Kaggwa-National Planning Authority, Mr. Wilson Asiimwe-Ministry of Finance, Planning and Economic Development, Mr. Nathan Mununuzi-Ministry of Water and Environment, Mr. Godwin Kamugisha-National Environment Management Authority, and Dr. Peter Babyenda-CEACM Coordinator and member of faculty at Makerere University College of Business and Management Sciences (MakCoBAMS).
The Panelists argued that assigning monetary value to forests, wetlands, water resources, and other ecosystems would enable evidence-based budgeting, investment decisions, and environmental protection while capturing costs ignored by traditional GDP measures.
They stressed the need for stronger institutions, increased funding, enhanced research and capacity building, and closer collaboration between government, academia, and development partners.
The event, organized by CEACM, brought on board distinguished stakeholders including the Minister of State for Environment, Hon. Beatrice Atim Anywar who represented the Minister of Water and Environment, Hon. Maj. Gen. (Rtd.) Kahinda Otafiire, Makerere University Vice Chancellor, Prof. Barnabas Nawangwe, the Principal, College of Business and Management Sciences (CoBAMS), and Director CEACM, Prof. Edward Bbaale and representatives from different Ministries and Agencies such as, the Embassy of Denmark in Uganda, the Global Green Growth Institute (GGGI), Ministry of Finance, Planning and Economic Development, the Ministry of Water and Environment, the National Environment Management Authority (NEMA), the Ministry of Lands, Housing and Urban Development, Ministry of Energy and Mineral Development, and among others.
CEACM is a research and policy centre that supports African countries in integrating climate change and natural capital into economic planning through research, capacity building, and evidence-based policymaking. CEACM is one of the centres within the School of Economics at the College of Business and Management Sciences (CoBAMS) at Makerere University.
The Public Investment Management Centre of Excellence (PIM CoE) at Makerere University is set to benefit from a grant under the World Bank-supported PIM-Plus Project, an initiative aimed at strengthening Public Investment Management Systems and enhancing the capacity for effective project planning, appraisal, implementation, and monitoring in Uganda.
Through the project, the Centre is expected to receive funding of approximately USD 8 million to support the construction of a modern teaching and residential facility. The proposed infrastructure is intended to enhance the Centre’s capacity to deliver high-quality training, research and technical advisory services in Public Investment Management (PIM) to government institutions and other stakeholders across the region and beyond.
The project’s construction activities are anticipated to commence in the next financial year following the completion of the necessary preparatory processes, including feasibility studies and project design.
As part of the ongoing project preparation activities, the PIM CoE today hosted a delegation of officials from the Ministry of Finance, Planning and Economic Development (MoFPED), who visited the Centre to assess progress made towards the implementation of the PIM-Plus Project. The visit provided an opportunity for the Ministry team to review the Centre’s readiness, discuss key project milestones, and identify areas requiring further attention to ensure timely project execution.
The Ministry delegation was led by Ms. Esther Ayebare, Ag. Assistant Commissioner, Public Investments and Project Analysis Department who commended the Centre for the progress registered thus far. She emphasized the importance of adhering to the project preparation timelines and urged the PIM CoE team to expedite the completion of the feasibility studies and other prerequisite activities necessary for project approval and commencement.
Ms. Ayebare noted that the successful implementation of the project will significantly strengthen the Centre’s role as a national and regional hub for capacity building, research and knowledge dissemination in Public Investment Management. She further underscored the Government’s commitment to supporting initiatives that enhance the quality of public investments and contribute to improved service delivery and sustainable economic development.
The Director of the PIM Centre, Prof. Edward Bbaale reaffirmed the Centre’s commitment to ensuring that all project preparation requirements are completed within the stipulated timelines. He noted that the planned facility will provide a conducive environment for training, accommodation and collaborative learning thereby strengthening the Centre’s ability to support the Country in developing and managing high-quality investment projects.
Dr. John Sseruyange, the Manager of the PIM Centre of Excellence emphasized that the Centre remains committed to delivering high-quality, demand-driven training courses that respond to the evolving needs of Public Investment Management practitioners and contribute to the successful implementation of Uganda’s Public Investment Management reform agenda. He further noted that the project will enable the Centre to effectively fulfil its mandate and contribute more meaningfully to addressing PIM capacity constraints in the region. The PIM-Plus Project forms part of broader efforts by the Government of Uganda and its development partners to improve the efficiency, effectiveness and impact of public investments, ensuring that public resources are directed towards projects that deliver maximum socio-economic benefits for citizens.
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