Business & Management
Environmental Economists want a “Green Fund” Established
Published
2 years agoon
By
Jane Anyango
Environmental Economists from Makerere University and stakeholders in environment and natural resources sectors have expressed the need for Uganda to establish a Green Fund to finance green initiatives.
The dons have also proposed and re-echoed known initiatives that require mind-set change and government commitment to infrastructural developments that can reduce environmental pollution.
Environmentalists also want part of the Green Fund to come from greatest polluters in the country and the developed countries relative to the damage caused.

In addition, they want the African voice heard in the global discussion towards mitigation, commitment and transitioning to low carbon economies.
The call was made during the policy dialogue organised by the Environment for Development Initiative (EfD-Mak Centre) at the Kampala Sheraton Hotel as one of the mainstream activities. The dialogue held on December 20, 2023 brought together members of the academia, representatives of private sector, government ministries, departments and agencies, CSOs, manufacturers, and commercial banks on the theme, “Green Financing in Uganda: From Paper to Practice”.
The main aim of the workshop was to engage with the government to have a healthy debate how to finance green transitions and greening starting from the household level. The key message was that there is need to transit, but the transition is not cheap, it is expensive and requires deliberate effort.

While opening the workshop, the Principal, College of Business and Management Sciences Assoc. Prof. Eria Hisali said the engagement was hinged on twin objectives of attaining low carbon outcomes and high growth outcomes which are environmentally friendly.
As researchers and policy makers, Prof. Hisali interested participants to discuss and understand the current growth landscape, where growth is coming from, and main activities that drive growth and livelihoods.
Within that landscape, the professor advised participants to address the main concerns with regard to sustainability, the environmental concerns with regard to the current sources of growth and the status quo.

Hisali also told participants to pose a question of the disruptive effects that come along with the transitions to low carbon sources of growth; and closely related, the best options to make the transitions and finally, how the green financing strategies can be made attractive for the different actors to take them on.
Outside the green financing alone, Prof. Hisali challenged participants to debate on other options that policy makers can consider to enable the transition to low carbon sources of growth to start taking place.
The Professor also guided participants to have discussions on the framework for enforcement and auditing of the transition process itself, asking, what is it that they can do to ensure that they are tracking the progress made and whatever has been agreed upon at policy level, and ensure it is enforceable and that there are institutions and agencies to enforce that.

“The other issues we should be discussing is that what is our voice as Uganda and as the developing world in these discussions towards a low carbon economy. Do we have the voice as anyone else? Or is it that for us we should be making the transition while others are not, where is the equaliser. Are we in future for example going to talk about green imports or it is about us only ensuring that we go green and possibly some powerful nations look on and go to the extent of lip service”. Hisali asked.
In an interview, Prof. Hisali said, the discussion of the African voice in mitigation carbon emissions has picked traction at the global- level questioning whether all countries of the world have the same voice and commitment to addressing matters of environmental sustainability.
“This discussion is important because the transition to low carbon economies come with certain disruptions the way things are done and those disruptions are a cost. They disrupt livelihoods, slow growth and the only way we can be committed to that transition, is when we are sure that it is not only us but that everyone else has the same commitment. We all belong to the planet and we should have the same level of commitment,” Hisali stressed.

The Director EfD-Mak Centre Prof. Edward Bbaale noted that although there are more than one SDGs focused on the environment and green financing, many countries are not living up to the set aspiration of the SDG. Bbaale is also the Director, Directorate of Research and Graduate Training at Makerere University.
As a university, Prof. Bbaale said, they must undertake research and establish to what extent the country has achieved green energy transitions and inform government where the country is, and what should be done. Through research Bbaale said the university has done a lot to come up with innovations as solutions to the green transitions such as solar energy solutions and others.
Bbaale reported that the EfD-Mak Centre is focusing on environment and natural resources, on how to harness and manage the environment for sustainable development, satisfying the needs of the present generation without compromising the needs and the benefits of the future generation.

As the Environment for Development initiative, Bbaale said, the topic of green financing is based on the fact that the environment has been the most affected resources through deforestation, reclaiming of wetlands, and most of these have come partly through agriculture where forests have been cut unsustainably and for infrastructural developments.
Bbaale warned that most of these developments have taken place without minding about the environment adding that unlike human beings who forgive and forget, nature does not.
“Nature does not forgive and nature does not forget. Actually, at one-time nature will hit back badly. You have seen in Kampala during this season, in the last three months, floods swallowing up people, our fellow human beings dying, cars being swallowed up in a place where you least expect that you are going to meet your death.

We have seen that one being caused by the environment hitting back. Maybe because that very area was a wetland, but during the construction of the house or the building or the road, this was not catered for.” The Director decried.
It is time to protect the environment through mindset change, best practices and investment in green initiatives
Prof. Edward bbaale
Prof. Bbaale stressed that it is now time to talk about protecting the environment against greenhouse gases and, one sure way, apart from mindset change and preaching to the population on the best ways of life, one other way, is through investment.
He observed that almost 85% of Uganda’s households depend on biomass for cooking, mainly firewood and charcoal. He said, it is dangerous and leads to deforestation, pollution and respiratory diseases. The alternatives he said, can come through, for example, using LPG and electricity which are very expensive and require subsidies to make sure that an average household can afford consistently.

Bbaale called for mindset change among the citizenry and re-orientation of the country’s infrastructure to allow citizens ride bicycles to short distance workplaces to reduce on use of vehicles and pollution.
“You do not need to board a vehicle if you are coming from 1.5 kilometers away. A bicycle can do that, even 20 kilometers away. But now we need to establish the infrastructure for that. Have lanes that are for bicycles alone. And when you’re riding your bicycle, you are very safe. You will not meet your death because of riding a bicycle.
I’ve interacted with the professors elsewhere in the developed world, and the head of the university, the president of the university rides a bicycle to work. But these people are safe. So the question is, are you safe when you ride a bicycle to go to your place of work? But now, for us to re-orient, we require financing. And also how would you ensure that most of us will be riding electric motorcycles which don’t emit any gases?”. Bbaale said.

The don also welcomed the move to the manufacture and use of electric vehicles.
“Okay, how can we, all of us, ensure that we shall at one time be driving electric cars which require that they are charged to make sure that you have enough current that will take you to Mbarara. This means that as you drive to Mbarara, somewhere, there must be a point where you go and refill your current as you drive an electric car.
But now, government investment requires that the planning, programming and the budgetary processes are in view or in perspective of the need to finance these green investments.”, He added
The Director explained that some of the issues might require doing adaptation, and so need adaptation finance while some of the issues would require to finance the disaster, because,for example, the floods bring disasters, landslides and all of these. And so it requires that there is a fund for disasters that happen because people suffer through climate shocks.
Part of the Green Fund should come from the greatest polluters in the country and the Developed countries
prof. edward bbaale

Prof. Bbaale also noted that Neither Uganda as a country, nor Africa as a continent of Africa, is not solely responsible for climate issues faced.
“…Because our colleagues in the north that are already developed, America, Europe and all that, during the industrial revolution released a lot of greenhouse gases into the environment. And that’s why actually negotiations are going on that the developed countries that actually polluted the environment in the first place should pay.
So, part of the fund that I’m talking about should come from the developed countries. Part of the fund should come from China, Europe and, part of the fund must come from the United States”, Bbaale asserted.

Bbaale added that greatest polluters in the country must pay correctly for what they have damaged.
“We must map and know globally who are the greatest contributors to the climate fund. The same applies to Uganda. We have had the debates. Who are the greatest polluters? If you are running an industry and you are releasing waste products into Lake Victoria, you must pay so that government can use the money you have paid to correct what you have damaged.
…even if you were just releasing, because of your industrial activity greenhouse gases into the atmosphere, government should be in a position to compute the extent of damage you are causing and therefore you, the private investor, be able to pay for that. And so, government requires to finance activities that constitute green transitions”, Bbaale advised.

He said transiting into a green environment has two phases. Number one, is mindset change that is, what we do as human beings, and it also has to do with the real costs which is not cheap.
EfD-Mak Policy Engagement Specialist for Inclusive Green Economy (IGE) Program Dr. Peter Babyenda said, as a country, continent and globe, there is a lot on paper, but practice is lacking.
Babyenda expressed the need to involve everybody starting from the public, the academia, media, manufacturers and commercial banks among others.

“We have realized that whenever we are coming up with these policies, more so, to do with banking, the commercial banks which deal with the person are not part of the negotiations yet there is no local person who goes directly to the central bank. So we need to involve banks right away from planning to implementation”, He said.
Babyenda also said, there is need to invest in mindset change and be able to raise funds locally as a country.
“We cannot plan for green financing where 80% of the budget is from the donors So, we need to mobilise the funds locally through contributions from emitting manufacturers, people in Agriculture and fossil fuels,” He said
Babyenda also said there is need to define the products clearly starting where the green financing will go for instance investments in tree planting, subsidizing environmentally friendly technologies including the cooking among others.
Jane Anyango is the Communication Officer EfD Uganda
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Business & Management
Dissemination Workshop: Government and Regulators urged to formalize the informal sector
Published
3 hours agoon
August 29, 2025
On 29th August 2025, researchers from Makerere University College of Business and Management Sciences and the Copenhagen Business School, in partnership with Uganda Small Scale Industries Association disseminated the key findings and policy recommendations aimed at impacting both the informal and formal sectors in Uganda.
The dissemination workshop follows an intensive and participatory research project, which presents insights from a large scale study of over 1,100 small-scale firms across Uganda. Hosted at Makerere University, the dissemination workshop on Firm Formalization and Sustainable Development, brought on board key stakeholders including regulators, policy implementers, researchers, industry partners, the private sectors, manufactures, the academia, business men and women from the informal sector, and the media.
Approximately 90% of Small and Medium Enterprises (SMEs) in Sub-Saharan Africa operate in the informal sector. Uganda’s informal economy employs the majority of workers, but is characterized by low productivity and unsustainable practices. In Uganda, nearly 78% of the working population operate in the informal economy, spanning from street vendors to large unregistered businesses. Firms may choose to remain informal to hinder the accessibility of tax information, which consequently affects the government’s ability to mobilize domestic revenue. While informality provides livelihoods and informal firms may enjoy a significant degree of adaptability and flexibility, they typically face low productivity, limited worker protection, and environmentally harmful practices.
In 2022, an interdisciplinary team of scholars and practitioners embarked on research to examine the informal sector, gain a deeper understanding of the informal sector, as well as, its impact on sustainable development. The research team conducted field experiments and survey-based studies between 2022-2024 to evaluate the links between formalization and sustainable development.

Led by Prof. Marcus M. Larsen as the Principal Investigator, the research team consisted of the following the members: Prof. Faisal Buyinza-Local Principal Investigator, Dr. John Seruyange-Makerere University School of Economics, Dr. Ismail Kintu and Dr. Yusuf Kiwala-Makerere University School of Business, and Prof. Rebecca Namatovu-Copenhagen Business School. The research was funded by the Independent Research Fund Denmark.
“Our research shows that formalization can promote sustainable development, but outcomes differ by type: URA tax registration drives the most meaningful improvements in business, labour, and environmental practices, while URSB business registration mainly boosts legitimacy and local government licensing lags behind. To realize Uganda’s green and inclusive growth goals, formalization must be coupled with sustainability incentives, targeted reforms, and strong support from government, business associations, and civil society. From the policy perspective, the government needs to simplify the legitimization process through increased proximity of the registration centres for SMEs to leverage the benefits of formalization.”
Opening the dissemination workshop, the Principal of the College of Business and Management Sciences-Prof. Edward Bbaale represented by the Deputy Principal, Professor James Wokadala, emphasized the significance of the study in shaping Uganda’s development agenda. He underscored that Makerere University is committed to undertaking research with partners to drive inclusive growth and sustainable economic development. The Deputy Principal noted that the interdisciplinary research team combining the global north and global south expertise, positions the College of Business and Management Sciences at Makerere University, to produce impactful research to influence policy and practice at the national and global levels.

Unpacking the key concept in the research project, Ms. Veronica Namwanje, the Director of Uganda Small Scale Industries Association (USSIA) explained that formalization goes beyond business registration. “Formalization is about strengthening enterprises to grow sustainably,” she articulated. Commending the partnership between USSIA and the School of Economics at Makerere University, Ms. Namwanje stated that this collaborative learning experience will strengthen SME’s in Uganda. “This research will significantly impact Uganda’s economy. 75% of the labour force is employed in the non-formal sector. The research will support over 12,000 member SMEs across Uganda,” she said.
Building on the remarks from the College Principal and the Director of USSIA respectively, the Moderator of the dissemination workshop, Dr. Anthony Tibaingana called upon the project Principal Investigator, Prof. Marcus Larsen from Copenhagen Business School, to present to the audience, the gist of the research on formalization and sustainable development.

Prof. Larsen commenced his presentation by acknowledging the Local Principal Investigator, Prof. Faisal Buyinza and Makerere University researchers in Economics and Business for their commitment and dedication. “This project started in 2022. You have worked with me wholeheartedly. Thank you for being true partners,” he remarked. Prof. Larsen explained that this research exposed him to the beautiful country called Uganda, its fine weather and hospitable people. As this particular research project comes to an end, he leaves Uganda and Makerere University with good memories, of working with people, committed to the transformation of society.
Setting the pace into his presentation that provided a strong case for formalization of business given its contribution to inclusive growth and development of any country, Prof. Larsen provided a comparison between the Global north where formalization is a norm. “The Global North has zero tolerance for informal practices. In the Global North, you must be formally registered to operate a business,” he reported.
In the Global South, Prof. Larsen disclosed that the research studies proved that the number of firms under the informal sector was quite high. Through the research project, Firm Formalization and Sustainable Development in Uganda, they observed that many small scale businesses operate without any form of registration, from the Uganda Revenue Authority (URA) and the Uganda Registration Services Bureau (URSB).
With over 78% of the working population employed in the informal economy through numerous establishments (ILOSTAT, 2024), Prof. Larsen stressed that the situation in Uganda, necessitates a combined effort to ensure formalization of businesses/firms. He notified the audience about Sustainable Development Goal (SDG) 8.3, which encourages the formalization and growth of micro, small and medium sized enterprises. He also made reference to Uganda’s 4th National Development Plan, which states, and I quote: “This dual nature of informality contributes to low productivity, survival and growth of enterprises, as well as, limiting effectiveness of government policy incentives.”
Prof. Larsen argued that addressing high firm informality in the Global South through formalization can unlock growth, enable access to resources, spur sustainable development, drive inclusive growth, and contribute to the realization of Sustainable Development Goals (SDGs).
Examining SMEs and the environment, Prof. Larsen reported that the research findings indicated that that environmental issues are given less attention by SMEs. “Informal workers are particularly affected by and affect climate change. Most of the interactions proved that informal workers use environmentally unfriendly practices,” he stated. Prof. Larsen together with the research team advocated for a transition to formalization of firms, which leads to environmental sustainability with decent workers.

The research team observed that informal workers suffer from job insecurity, and in most cases, their employers do not remit their social protection funds. For instance, in Uganda, most of the workers in the informal sector did not have any contributions with the National Social Security Fund (NSSF).
Presenting the key research insights, Prof. Larsen focused on the formalization and practices, interpretation for policy makers, and SME survival and sustainability. Formalization and Practices provided hints on URSB (business registration), URA (Tax Registration) and Local Government (Trading Licenses).
Providing the interpretation for policy makers, Prof. Larsen elaborated as follows: URSB formalization mainly signals legitimacy, but has limited impact on deeper practices; URA formalization, though resisted initially, delivers the strongest and broadest improvements in business, worker and environmental practices once firms adopt it; and Local government licensing is associated with negative or weak outcomes indicating a need to reform systems to better incentivize sustainability.
On SME Survival and Sustainability, the key research insights include the following:
Financing: MSMEs that started with external financing were 12% more likely to survive than those using internal funds.
Gender: Male owned MSMEs had a higher survival rate (+13%) due to greater access to resources, though firms owned by females reported stronger sustainability orientations.
Location: Urban-based firms had 10-20% higher survival than rural firms, though rural enterprises displayed higher sustainability practices overall.
Education: Owners with university education had survival rates 17 to 24% higher than those with primary schooling.
Business associations: Female-owned MSMEs in associations had 13 to 16% higher survival rates
Registration effects: Surprisingly, longer registration with URA/URSB was associated with slightly lower survival rates (1 to 4%), pointing to burdens of compliance.
The Local Principal Investigator, Prof. Faisal Buyinza, advocated for multi-faceted policies to empower SMEs in Uganda for instance, through simplifying registration, providing green tax incentives, protection of workers and guarding against counterfeit products. Prof. Buyinza presented the following policy recommendations:
- Raising sustainability standards in business formalization
- Building green and fair fiscal systems
- Strengthening social protection and green employment
- Enhancing entrepreneurial skills for sustainability
- Promoting youth and ago-led green innovation
- Advancing women’s leadership in sustainable enterprises
- Digital transformation for green formalization
- Civil society and employer advocacy for just transition
The participants delved into an interactive question and answer session moderated by Prof. Eria Hisali, former Principal of the College of Business and Management Sciences, who provided strategic guidance and oversight at the inception of the research project.

Prof. Hisali called upon the participants and key stakeholders to contribute to the discussion, when he said: “The informal sector is not abstract. The informal sector is with us. I therefore call upon you to share lived experiences and practices on this matter.”
Taking on the form of a plenary, the following ideas were raised:
- Financial constraints are a major blow to SMEs. This is further complicated by the payments required through registration, licensing, taxation, and other formalization processes including the high cost for online operations that require access to the Internet.
- Power outages in Uganda significantly affect business operations. When power is on and off, SMEs incur losses due to the nature of their activities.
- URA has a close working relationship with Uganda Small Scale Industries Association (USSIA). This partnership should be leveraged to reach out to business owners in the informal sector.
- The government should provide tax incentives to local investors. This incentive will positively impact formalization of businesses.
- URBS should come up with tough measures on standards in order to safeguard Ugandans from counterfeit products.
- URA and URSB should note that majority of players in the informal sector are not educated, and, as such, should come up with specialized awareness programmes delivered in a language that they can understand.
- Noting that despite the benefits of formalization, entrepreneurs fear to formalize their business, those concerned should invest time and resources to identify the reasons behind this attitude.
- Create awareness by deliberately popularizing the benefits of formalizing a business, and the incentives that accrue to someone who has formalized his or her business.
- Commending the stakeholder mapping and segmentation with respect to policy recommendation, the participants requested for the involvement of the Ministry of Gender, Labour and Social Development.
- Tackling the policy recommendation on digital transformation, the participants recommended the involvement of NITA-Uganda.
- Formalization of businesses and registration is affected by the high cost of Internet services and subscriptions. The participants reported that the high costs of Internet deter online operations.
Reflecting on the ideas raised during the plenary sessions, Prof. Hisali observed differences in the level of awareness regarding business formalization. He called upon the Uganda Small Scale Industries Association and Makerere University to continue the discussion with key stakeholders to conduct periodic awareness creation and training sessions.
On a positive note, the participants and stakeholders were notified that URA was in advanced stages of according tax holidays to SMEs. Prof. Faisal Buyinza, who interacted with URA, during the course of the research project (2022-2024), highlighted that effective July 2026, start-up business up to UGX 300million, will not be taxed. Such start up business, will enjoy a tax holiday of three years.”
The submission from Prof. Faisal Buyinza was supported by officials from URA who were physically present in the dissemination workshop held in the Conference Hall, at the College of Business and Management Sciences, Makerere University.
The participants were thoroughly engaged during the dissemination workshop, which entailed remarks from the College Principal, presentation by USSIA, project purpose and findings, research presentation, policy implications, question and answer session, and final reflections.
Business & Management
Carbon Prices Too Low to Cut Emissions, Says Canadian Professor Mark Purdon at EfD-Mak Seminar
Published
2 days agoon
August 27, 2025By
Jane Anyango
Kampala, Uganda – August 27, 2025
A new study spanning a decade has revealed that the prices currently offered for carbon credits and other climate finance instruments are too low to meaningfully reduce greenhouse gas emissions in developing countries.
The findings were presented by Canadian scholar Prof. Mark Purdon during a seminar at Makerere University, where he launched his new book “The Political Economy of Climate Finance Effectiveness in Developing Countries: Carbon Markets, Climate Funds, and the State.” The event, hosted by the Environment for Development (EfD) Mak Centre, attracted graduate students and academic staff from the Schools of Economics and Agricultural Sciences.
Prof. Purdon, an Associate Professor at Université du Québec à Montréal (UQAM), based his conclusions on a comparative study conducted between 2008 and 2018 in Uganda, Tanzania, and Moldova. His research showed that while carbon markets and climate funds are theoretically designed to reduce emissions, their real-world effectiveness is constrained by the low financial incentives attached.

“Carbon prices during the period I studied were simply too low to drive meaningful emission reductions,” said Prof. Purdon. “They only worked in contexts where governments were already trying to push development initiatives-like Uganda’s forestry projects and the climate finance just helped amplify that effort.”
The research contrasts Uganda’s relatively proactive approach with Tanzania’s limited engagement, attributing the difference not to institutional capacity but to political will.
“In Tanzania, the government just wasn’t genuinely interested in these instruments -they didn’t find the financial incentives compelling. Uganda, on the other hand, saw even the modest funding as worth integrating into its broader development goals,” he added.

Interestingly, Moldova also showed effectiveness similar to Uganda, despite having different levels of state capacity. Prof. Purdon emphasized that success in utilizing climate finance depends more on political interest than institutional strength alone.
The seminar highlighted the importance of domestic commitment in making international climate finance work. According to Purdon, climate finance is unlikely to succeed in countries lacking political interest, regardless of the mechanisms in place.
The professor’s book aims to inform policymakers, development agencies, and researchers about the conditions under which climate finance can effectively contribute to emission reduction. He expressed hope that students and faculty at Makerere University would further engage with the study’s findings.

“This is how ideas turn into action – through forums like this,” he said, noting his appreciation for the strong turnout and engagement at the event.
Prof. Purdon was in Uganda to attend the International Growth Center (IGC) conference later in the week, but used the opportunity to share his latest work with the Makerere academic community.

Uganda to Launch National Climate Finance Strategy as Experts Call for Private Sector Investment in Adaptation
Uganda is set to launch its first-ever National Climate Finance Strategy on September 12, 2025, a milestone development in the country’s climate policy architecture, according to remarks made by Dr. Peter Babyenda, Policy Engagement Specialist at the EfD-Mak Centre.
Speaking on behalf of Prof. Edward Bbaale, Director of EfD-Mak Centre, Dr. Babyenda emphasized that climate finance will only be effective if private sector participation is prioritized especially in adaptation-focused investments.
“The private sector will only invest where there’s a return. We must ask how to make climate investments profitable,” Dr. Babyenda said. “Much of our climate financing currently goes toward mitigation, but Uganda’s needs are more aligned with adaptation especially in agriculture, which remains highly vulnerable.”

He cited his recent consultancy with the International Fund for Agricultural Development (IFAD), which explored strategies for increasing private sector investment in agricultural adaptation. The findings, expected to be published soon, were presented to various donor communities and could shape future financing models in Uganda.
Dr. Babyenda noted that while mitigation efforts like tree planting are easier to quantify and attract funding, adaptation remains underfunded despite its critical relevance for Uganda. He called for targeted strategies to shift this imbalance.
Highlighting the significance of Prof. Purdon’s new book, “The Political Economy of Climate Finance Effectiveness in Developing Countries”, Dr. Babyenda stressed the importance of understanding political will in determining the success of climate initiatives.

“The experiences from Uganda, Moldova, and Tanzania outlined in the book show that effectiveness is possible where there is political interest. It is not just about institutional capacity it is about commitment,” he said.
He further revealed that Uganda’s Ministry of Finance, Planning and Economic Development has already established a Climate Finance Unit, which is now leading efforts to formalize the upcoming strategy.
In addition to national developments, Dr. Babyenda warned of growing international pressure. He pointed to upcoming European Union regulations, including the Cross-Border Adjustment Mechanism (CBAM), which could restrict exports such as coffee unless exporters prove their products are deforestation-free.

“If we don’t have systems like carbon taxes or certified credits, our goods will face fines or lose market access. We must prepare for this global shift,” he warned.
Dr. Babyenda also announced that Makerere and IGC would sign a Memorandum of Understanding, solidifying their continued partnership in climate economics research and policy development.
He closed by encouraging students to engage with the issues raised during the seminar, suggesting they could form the basis of graduate research or postdoctoral work, especially with available funding in climate-related fields.

“Monies are there and these are the issues. Our roads, our crops, our lives are being affected. We need solutions rooted in evidence and action,” he said.
Book Offers Critical Insights for Evidence-Based Policy, Says Reviewer Dr. Byakagaba
Dr. Patrick Byakagaba, a leading Ugandan environmental policy expert and one of the reviewers of the launched book, praised the publication for shedding light on the political economy factors that determine the success or failure of climate finance instruments in developing countries.
Dr. Byakagaba described the work as a timely and evidence-based resource that should inform both policy and practice.
“In my opinion, this book helps us understand the political economy factors that are critical for the effectiveness of the different climate financing instruments,” Dr. Byakagaba said. “It shows what is working, what is not, and what we must do to leverage successful measures.”

He emphasized the book’s relevance not only for academics but also for practitioners and students in economics, environmental science, and natural resource management – many of whom are directly involved in projects funded by international climate finance.
Unlike many theoretical publications, Dr. Byakagaba noted that the book stands out for its field-based evidence drawn from Uganda, Tanzania, and Moldova – countries with shared democratic governance structures but differing levels of engagement in climate finance initiatives.
“This isn’t just theoretical work,” he said. “It gives us a strong theoretical foundation but also backs it up with real-world evidence. That’s exactly what we’ve been missing – research that informs policy in a tangible, practical way.”

He stressed the importance of building on this research to expand the body of evidence needed for crafting effective and locally relevant climate finance strategies.
“If we are going to adopt evidence-based policy instruments, we must continue investing in research that reveals what’s actually working on the ground,” Dr. Byakagaba urged.
The seminar highlighted the growing need to critically evaluate and adapt international climate finance mechanisms to local political and economic realities – a message echoed by both Prof. Purdon and other experts at the event.

Book summary
There is ample evidence that engaging developing countries on climate change mitigation would have significant, positive impacts on global climate efforts. There is much debate, however, on the most effective strategy for unlocking these low cost mitigation opportunities. While the Clean Development Mechanism (CDM) emerged as the main climate finance instrument for engaging developing countries under the Kyoto Protocol, the carbon market approach it embodied would largely be replaced by a new array of climate finance instruments based on climate funds.
In The Political Economy of Climate Finance Effectiveness in Developing Countries, Mark Purdon shows that the effectiveness of climate finance instruments to reduce emissions under either strategy has depended on the interaction between prevailing ideas about how to develop a nation’s economy, as well as state interests in various economic sectors.

Based on multiple field visits over a decade in three countries, the author demonstrates that climate finance instruments have been more effectively implemented when the state treats them as vehicles for addressing priority development issues. Climate finance instruments were more consistently and effectively implemented in Uganda and Moldova than Tanzania, despite differences in state capacity between countries. This pattern held for the CDM,as well as subsequent instruments largely based on climate funds such as Reducing Emissions from Deforestation and Forest Degradation (REDD+) and other national mitigation actions. Contributing to broader debates on international climate cooperation, Purdon’s findings inform international efforts to support national climate plans and catalyze low-carbon development by emphasizing the importance of domestic politics and the state.

The Political Economy of Climate Finance Effectiveness in Developing Countries: Carbon Markets, Climate Funds, and the State
By Mark Purdon
Oxford University Press 2024
Purchase Online: https://global.oup.com/academic/product/the-political-economy-of-climate-finance-effectiveness-in-developing-countries-9780197756836
Jane Anyango is the Communication Officer EfD Uganda.
Business & Management
Uganda Urged to Embrace Community-Based Conservation Approaches to Tackle Biodiversity Crisis
Published
1 week agoon
August 22, 2025By
Jane Anyango
Over 40 Ugandan government officials have been called to integrate communities into biodiversity conservation following a two-day high-level training (August 20–21, 2025) at Makerere University.
Organized by EfD Uganda, the workshop focused on biodiversity conservation, community-based natural resource management, and economic valuation of national parks. Led by renowned environmental economist Prof. Edwin Muchapondwa, the training emphasized aligning conservation efforts with community involvement for lasting impact.

“Communities must be seen not just as beneficiaries but as co-managers of biodiversity,” said Prof. Muchapondwa. “Policy frameworks need to devolve rights to local people to increase their stake in conservation outcomes.”
Participants from ministries and agencies explored Uganda’s biodiversity challenges—including habitat loss, agricultural expansion, poaching, and climate change. Sessions covered conservation principles, legal frameworks, ecosystem valuation, and regulatory tools to integrate biodiversity into national planning.

Valuing Nature to Shape Policy
A central theme was the economic valuation of ecosystems—putting monetary value on biodiversity to inform policy and investment decisions.
“When we reduce everything to a common metric, we can make objective, evidence-based decisions—especially when weighing development against conservation,” Prof. Muchapondwa said.

Officials practiced applying valuation methods like contingent valuation and payment for ecosystem services in real-world policy settings, including environmental impact assessments and Uganda’s National Development Plan III.
Despite strong conservation policies on paper, implementation remains weak. “The issue isn’t policy absence but execution,” he noted. “We must adapt successful community-based models from Southern Africa to Uganda’s context.”

Tourism and Development: A Delicate Balance– Prof. Edward Bbaale
Speaking at the opening, Prof. Edward Bbaale, Director of the EfD–Mak Centre, emphasized collaboration between academia and government to support tourism development and sustainable resource use.
He praised Prof. Muchapondwa as a “pillar of the Environment for Development network” and highlighted the urgent need for research that connects tourism, conservation, and economics.

“We’ve had little research from Makerere on tourism and natural resource valuation,” Bbaale said. “Yet this is exactly where government seeks advice.”
Bbaale underscored Uganda’s ambition to grow GDP tenfold—from $50 billion to $500 billion—through sectors like tourism, agro-industrialization, and manufacturing, urging researchers to support this growth with evidence-based insights.

“Makerere houses the highest concentration of PhDs in this country,” he said. “If this research isn’t happening here, where else should it happen?”
The event concluded with a renewed call for stronger partnerships among academia, government, and communities to ensure conservation and development go hand-in-hand.

Public Sector Must Rethink Economic Policy Through Biodiversity Lens– Dr. Peter Babyenda
Uganda risks jeopardizing its natural wealth if it continues to undervalue its ecological resources, warned Dr. Peter Babyenda, Research Fellow and Policy Engagement Specialist at EfD–Mak Centre.
“Our forests, wetlands, and ecosystems are routinely excluded from GDP calculations due to limited technical capacity and funding,” he said. “Kenya has made progress—Uganda must catch up.”

To bridge the gap, EfD–Mak Centre, with support from SIDA, has launched a training program for technical staff from ministries and agencies like the Ministry of Tourism, Uganda Wildlife Authority, and NEMA.
“These are the people who draft policy,” Dr. Babyenda said. “We’re training them to use data and evidence, not emotion, when defending policies.”

He cited recent transport policy missteps—such as a speed enforcement proposal that failed due to lack of public engagement—as an example of why community participation is essential.
“Especially with human-wildlife conflicts, you must involve locals,” he said. “Solutions like electric fencing must be safe and community-driven.”
Conservation vs. Economic Growth
Uganda’s ambitious goal to grow its economy from $50 billion to $550 billion by 2040 presents risks to biodiversity, particularly from agricultural expansion. Dr. Babyenda stressed the need to balance development with environmental preservation.
“We must promote agriculture without destroying forests and wetlands,” he said. “Our tourism sector, which depends heavily on biodiversity, must also be protected.”

He urged officials to present conservation as an economic asset. “If you show that every additional dollar invested in tourism marketing creates jobs and boosts GDP, people will listen.”
Aligning with Uganda’s National Development Plan IV, Dr. Babyenda called for cross-sector policy coherence.

“Tourism, agro-industry, and mineral development must be guided by sound, evidence-based policy,” he concluded. “Otherwise, we risk losing it all.”
Participants Reflections from the Training
Adson Tumwebaze – National Environment Management Authority (NEMA)
As someone working in the Research and Innovations Unit at NEMA, this training was a timely eye-opener. We’ve gained valuable insights into how economic valuation can be integrated into our research and planning frameworks. Understanding the tangible benefits ecosystems provide—and knowing how to quantify those benefits—equips us with the tools to make informed decisions when balancing development and conservation.
For us at NEMA, this goes beyond theory. It supports our mandate of protecting ecosystems and helps us align our work with national policies such as the National Biodiversity Action Plan and BISAP. One of my key takeaways is that you cannot talk about implementing a project on an ecosystem without understanding its value. Once we can economically define these benefits, we can also justify conservation measures, influence policy, and guide budgeting processes more effectively.
Alice Nalweera – Economic Policy Researcher
This training brought clarity to a challenge many of us are grappling with: the growing threats to biodiversity in the face of urbanization, climate change, and population pressure. As we pursue economic development and strive for goals like those outlined in the 2040 export-oriented strategy, we must ask: Can biodiversity and development coexist?
Tourism is one of Uganda’s biggest earners, and it’s entirely dependent on biodiversity—the parks, wildlife, flora, and fauna. Without protecting these resources, our economic aspirations could collapse. What struck me most is the urgent need for accurate data. We can’t conserve what we haven’t identified or valued. Accounting for our natural resources is not optional—it’s essential.
Arthur Ebong – National Planning Authority
From the national planning perspective, this training helped bridge a crucial gap between policy and implementation. While NDP III and NDP IV highlight biodiversity mainstreaming, they often lack depth in practical conservation measures. We used to insert the term “biodiversity” into plans, but lacked the tools to truly value and integrate it.
Learning about valuation methods like hedonic pricing and travel cost analysis opened new avenues for making biodiversity count—literally—in our national plans. And beyond the technical tools, this session also promoted inter-agency collaboration. With stakeholders like NEMA, UWA, and the Ministry of Water in the same room, we can now work more cohesively toward a shared goal.
The training has also inspired curriculum reviews. If we want future planners and policymakers to value biodiversity, we must train them early—through revised academic programs and capacity-building initiatives. This is not just about today’s policies, but the long-term socio-economic transformation of Uganda.
Gertrude Kirabo – Uganda Wildlife Authority (UWA)
At UWA, we face the challenge of balancing conservation with increasing economic pressure around protected areas. This training has been invaluable in helping us understand how to defend conservation efforts using data-driven economic valuation.
Previously, arguments for protecting a forest or wetland often sounded emotional or abstract. Now, we can present facts—cost-benefit analyses that compare the long-term value of ecosystem services with short-term economic gains. This also supports practical decisions like adjusting park permit fees or advocating for higher conservation budgets.
Personally, this training served as a wake-up call. It made me realize how often we’ve given away resources without truly valuing them. I strongly recommend that more field officers and institutional planners go through this kind of training. It’s one thing to learn these concepts in school, and another to see their real-world application. It’s time we started backing conservation with data and strong economic logic.
Jane Anyango is the Communication Officer EfD Uganda.
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