Business & Management
Exploring Africa’s Growth and Global Challenges: Participants rallied on effective utilization of resources, and adoption of green economy strategies
By Ritah Namisango and Monica Meeme
On 19th August 2025, the College of Business and Management Sciences (CoBAMS) at Makerere University, hosted a public presentation titled “Africa’s Growth Trends and Prospects in Light of Evolving Global Challenges.”
Dr. Paul Mpuga, a visiting Scholar and Division Manager for Microeconomic Policy, Debt Sustainability, and Forecasting in the Economic Governance and Knowledge Management Vice-Presidency of the African Development Bank Group, delivered the presentation, which attracted both physical and virtual participants, comprising researchers, teaching staff, graduate, and undergraduate students.
The presentation covered critical topics including: Regional differences in growth performance and outlook, Inflation in Africa, Opportunities and Challenges to growth, emerging risks, and key policy recommendations.
The presentation provided valuable insights into the current economic challenges and opportunities facing Africa. His analysis highlighted the importance of sound policies, economic integration, and investment in key sectors such as education, infrastructure, and green growth. The discussion emphasized the need for collaboration among governments, the private sector, and academia to drive sustainable development and inclusive growth across the continent.
Welcoming the participants, Associate Professor Faisal Buyinza, the Acting Dean of the School of Economics, emphasized that Dr. Mpuga’s work is significant not only for his academic contributions, but also for his role as a mentor, having taught and influenced many of the current faculty members.
“His impressive career journey, which began at the World Bank’s Kampala office and later took him to Ethiopia and other countries, reflects his deep expertise in key economic roles across the continent,” said Associate Professor Buyinza. He disclosed that Dr. Mpuga’s extensive experience has significantly contributed to the development of macroeconomic design and policy skills, an asset particularly crucial as Uganda navigates current economic challenges.
In addition to his professional achievements, the Acting Dean of the School of Economics commended the humanitarian spirit of Dr. Mpuga, recalling how he used to share meals with street children in Uganda, reflecting his compassion and values beyond academia.
In his address, the College Principal, Prof. Edward Bbaale welcomed Prof. Mpuga back to Makerere University. “Dr. Mpuga is a former Lecturer. Today, he returns to the School of Economics, his academic home, to share with us, his versatile knowledge, experience and expertise on a topic crucial for Africa’s transformation,” said the Principal. He commended Dr. Mpuga’s decision to deliver the presentation, highlighting that such academic engagements are vital and should become a regular part of the College’s culture.
Reiterating the role of knowledge sharing and mentorship within the academic community, the Principal shared his personal testimony, acknowledging Dr. Mpuga’s pivotal role in his own academic journey. He recounted how Dr. Mpuga mentored him early in his career by including his name on a research project—an opportunity that opened doors to numerous collaborations, professional growth, and academic advancement.
The Principal called upon the staff and students present to embrace a culture of regular academic public presentations, such as lunch-hour sessions across the School of Economics, School of Business, and the School of Statistics and Planning. He noted the close connections between the disciplines, highlighting the potential for cross-disciplinary learning and collaboration. The Principal emphasized that as Makerere University implements its research agenda, sustained academic engagement is a key defining aspect of this identity.
Prof. Bbaale affirmed the College’s support for such initiatives, including modest research grants that have already enabled the publication of around 70 research papers, soon to be compiled under the CoBAMS Working Paper Series.
Expressing the commitment to this strategic approach, the College Principal used the opportunity to introduce Dr. Peter Babyenda, a Lecturer at the School of Economics, who was appointed as the College’s Policy Engagement Coordinator to support academic activities. Prof. Bbaale assured all in attendance of the maximum support for this initiative and encouraged active participation from everyone.
Beginning his presentation, Dr. Paul Mpuga, Division Manager at the African Development Bank, offered a comprehensive overview of Africa’s economic realities, challenges, and opportunities. He emphasized that economic progress is not driven by sentiment, but by certainty, sound policies, and strategic investment.
Using a simple analogy, Dr. Mpuga explained that a baker doesn’t bake bread unless they are sure it will sell. In the same way, investors and entrepreneurs, will only take risks in economies where policy certainty and confidence are assured. He underscored the urgent need for policy coherence and economic stability, both globally and within African nations.
Reiterating the importance of Domestic Revenue Mobilization, Dr. Mpuga noted that Africa’s average tax-to-GDP ratio stands at just 17%—significantly lower than the 25–28% seen in more advanced economies such as South Africa and Botswana. These countries are able to finance up to 90% of their expenditures through domestic revenues, a target that many others on the continent still struggle to achieve.
He underscored the urgent need for reforms in tax systems and public finance management to reduce the over-reliance on external borrowing. “Africa requires an estimated $150–$170 billion annually for infrastructure development, yet currently mobilizes only about $80 billion, leaving a funding gap of $70–$100 billion,” he stated.
Dr. Mpuga emphasized that infrastructure such as roads, energy, water systems, and transport is not a luxury, but a necessity for connecting production to markets and driving sustainable development.
He stated that youth unemployment remains alarmingly high, with 30–40% of African youth (aged 15–34) unemployed in some countries. “Many young people are not in education, employment, or training, leading to wasted talent and increasing social risks,” he highlighted. He emphasized the need for greater investment in skills development and education, noting that sustainable economic transformation depends on a well-equipped and empowered workforce.
Dr. Mpuga pointed out that economic integration and managed migration are strategies that can boost GDP growth, enhance policy stability, and reduce export concentration.
He noted that, despite being one of the regions most affected by climate change, Africa has made limited progress in green growth investments. “The continent is rich in natural resources, yet underutilized in terms of climate-smart development,” he stated.
He indicated a major opportunity gap, when he disclosed that the global green economy is valued at an estimated $3 trillion, but Africa’s private sector participation stands at only 14%.
He advocated for greater private sector involvement, the adoption of green infrastructure practices, and natural capital accounting to help African countries value, protect, and benefit from their resources.
For Africa to realise inclusive growth, Dr. Mpuga highlighted the following practical policy recommendations:
- Improving fiscal transparency and efficiency
- Strengthening tax administration using digital tools
- Aligning monetary and fiscal policy, especially around inflation targeting
- Building foreign reserves to cushion against shocks
- Ensuring debt is used for productive investments such as energy and infrastructure
- Accelerating structural reforms and economic diversification
- Promoting integrated infrastructure planning (for instance roads with energy and ICT links)
- Investing in value addition and agro-processing to uplift rural economies
Using a humorous reference to Uganda’s famous grasshopper delicacies, Dr. Mpuga illustrated the need for economic transformation, saying, “We need to move beyond traditional activities and create value chains that can package and export even local foods globally. We shouldn’t be running to donors every day when we sit on so much wealth,” he noted. “Let us value what we have, manage it well, and build a prosperous, united, and green Africa.”
Responding to the questions, Dr. Mpuga emphasized the importance of formalizing economies, strengthening trade links, and building public confidence through sound policy frameworks such as inflation targeting and social contracts. He cautioned against excessive reliance on Artificial Intelligence in academic and professional settings. “AI can be useful for checking work or assisting with calculations, but it cannot replace human thought, creativity, or critical reasoning,” he advised.
Dr. Mpuga mentioned the need for better monitoring and maintenance systems, such as ensuring broken streetlights are tracked and fixed, drawing attention to practical governance concerns that affect everyday life.
Monica Meeme contributed to this story as a Guest Writer
A new study led by scientists from Makerere University School of Public Health has demonstrated that short-term climate variability plays a significant role in malaria transmission in Yumbe District, West Nile sub-region of Uganda. The study, Climate variability and malaria incidence trends in Yumbe District, West Nile Sub-region of Uganda (2017–2021), by Lesley Rose Ninsiima, Rogers Musiitwa, Zaitune Nanyunja, James Muleme, Chris Maasaba, Twahiri Anule, and David Musoke, was published in February 2026 in Malaria Journal through Springer Nature Link.
Today, malaria remains a major public health burden in Uganda, where environmental conditions support sustained transmission. Despite persistent outbreaks in northern Uganda, limited local evidence exists on how the changing climate patterns influence malaria trends. This study addressed that gap by examining five years of malaria surveillance data alongside district-level rainfall and temperature records.
Using routine health facility reports from the District Health Information System (DHIS) and climate data from the Uganda National Meteorological Authority (UNMA), the researchers applied time-series analysis to assess seasonal patterns and delayed climate effects on malaria incidence. Between 2017 and 2021, Yumbe District recorded 2,066,711 malaria cases, with transmission showing clear seasonal peaks between May and July and September and November, aligning with rainy periods.
Their analysis showed that rainfall was the strongest climatic driver of malaria transmission. Increased rainfall was associated with higher malaria cases approximately one month later, reflecting the time needed for mosquito breeding and transmission cycles. In contrast, higher minimum temperatures were linked to reduced malaria incidence, while maximum temperature showed no significant effect. Together, rainfall and minimum temperature explained a substantial proportion of variation in malaria cases, highlighting malaria’s sensitivity to short-term climate fluctuations.
The study findings underscore the value of integrating climate information into malaria surveillance and early warning systems to anticipate transmission peaks and guide timely interventions. Strengthening collaboration between public health and meteorological sectors, the researchers argue, could improve preparedness and support climate-informed malaria control strategies in high-burden settings.
Further details: https://link.springer.com/article/10.1186/s12936-026-05824-0
Agriculture & Environment
Mak hosts First African Symposium on Natural Capital Accounting and Climate-Sensitive Macroeconomic Modelling
African economies are increasingly exposed to climate-related shocks that threaten development gains, fiscal sustainability, and macroeconomic stability. From extreme weather events and biodiversity loss to the depletion of natural capital, climate risks are reshaping economic realities across the continent. Yet many macroeconomic frameworks used in public finance and planning continue to overlook climate and nature-related risks and the long-term benefits of resilience and adaptation investments.
To address this emerging reality, over 250 participants from Africa, Europe and beyond, convened at Makerere University – Kampala, on the 12th and 13th of February 2026, to participate in the First African Symposium on Natural Capital Accounting and Climate-Sensitive Macroeconomic Modelling.
Following the theme, “Climate-Sensitive Macroeconomics: Rethinking Growth in Africa’s Natural Resource Base, the hybrid symposium organized by Makerere University through the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM) within the School of Economics, under the College of Business and Management Sciences (CoBAMS), the Environment for Development Initiative (EfD), and the Ministry of Finance, Planning and Economic Development (MoFPED) in Uganda, brought onboard ministers, leading economists and planners, researchers, policy makers, the academia, development partners, climate change experts and the media.
The Symposium being the first of its kind on the continent, reflected Africa’s growing determination to work collectively in confronting shared development challenges, building on recent momentum such as the formation of Pan-African Finance Ministers Forum for Climate Action (PAFMCA).
Featuring speeches and presentations from notable speakers and partners, a keynote address on Natura Capital Accounting and Climate Change Nexus in Africa and their impact on Fiscal Policy, panel discussions, expert opinions, and exhibition kiosks (World Café), the symposium presented a platform to strengthen Africa’s analytical and institutional capacity to integrate climate and natural capital considerations into macroeconomic and fiscal policy.
Vice Chancellor underscores the role of universities
Welcoming the delegates to Makerere University, the Vice Chancellor-Prof. Barnabas Nawangwe emphasized that universities must lead innovation and collaborative research efforts to support collective climate change mitigation across the continent.
In the same vein, he advocated for strong collaboration between universities in Africa and government Ministries. “Makerere’s collaboration with the Ministry of Finance, Planning and Economic Development, stands as a shining example of how academia and government can strengthen economic management,” he said.
Prof. Nawangwe revealed that the collaboration between Makerere University and the Ministry, has strengthened macroeconomic modelling, fiscal policy analysis, and technical capacity within government. In addition, the partnership led to the establishment of the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling, bridging academic scholarship with real-world policy application.
“We have jointly established the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling. The Centre (established in August 2025) is anchored within the School of Economics in the Department of Policy and Development Economics, under the Master of Science in Economic Policy and Investment Modelling, a program jointly facilitated by Makerere University, the Ministry of Finance, Planning and Economic Development and the Bank of Uganda,” he mentioned.
Climate and Economic transformation are inseparable
The Vice Chancellor highlighted the critical intersection between economic transformation and environmental sustainability, noting that economies in Africa, heavily dependent on natural resources, face unprecedented pressures from climate shocks, biodiversity loss, and environmental degradation. Convinced that economic growth cannot be pursued in isolation from climate and environmental realities, he stressed the importance of integrating natural capital accounting and climate considerations into national development strategies.
Prof. Nawangwe advocated for shared responsibility of universities, research institutions, and policymakers to develop innovative analytical tools, responsive policy frameworks, and strong institutional capacities that promote sustainable growth while safeguarding environmental assets for future generations.
The Vice Chancellor commended UN PAGE and the Global Green Growth Institute (GGGI) for funding the symposium, as well as, other stakeholders namely the European Union and the Coalition of Finance Ministers for Climate Action (CoFMCA), Ministry of Water and Environment (MoWE), National Planning Authority (NPA), Uganda Bureau of Statistics (UBOS), the National Environment Management Authority (NEMA) for being reliable partners.
Integrating Climate into Fiscal Policy
During the opening ceremony, the Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija underscored the urgency of embedding climate considerations into economic planning.
“As Ministers of Finance, we are often confronted with difficult trade-offs. Our task is to balance the needs of today with sustainability for future generations,” said Hon. Kasaija, in a speech read by Hon. Henry Musasizi, the Minister of State for Finance (General Duties).
The Minister guided that traditional macroeconomic models focusing only on growth, inflation, and fiscal balance are inadequate in an era of climate shocks. He affirmed that African economies are facing interconnected challenges which directly impact economic growth. He stressed that traditional macroeconomic frameworks must evolve to systematically incorporate environmental degradation and climate shocks, whose consequences can no longer be ignored in policy analysis.
“For countries such as Uganda, whose development prospects are closely linked to natural resources and the climate-sensitive sectors, these challenges are not abstract. They affect livelihoods, public finances and long-term economic resilience,” he mentioned.
The Minister emphasized that natural capital accounting and climate-sensitive macroeconomic modelling are vital for valuing natural assets, assessing environmental costs, and guiding sound investment decisions.
Protecting Africa’s Natural Capital
Hon. Beatrice Atim Anywar, Minister of State for Environment, emphasized the urgent need to protect Africa’s ecosystems. “Africa stands at a defining crossroads. Our economies remain anchored in natural capital—forests, water resources, biodiversity, land, and ecosystems—which sustain life, generate fiscal revenue, and underpin development,” she said.
She warned that climate-related shocks are already undermining growth and public investment. “Floods, droughts, land degradation, biodiversity loss, and water stress are no longer distant risks. They are present realities, already affecting productivity and macroeconomic stability,” she said.
She emphasized the need for improved economic models that account for environmental and climate risks: “Traditional macroeconomic frameworks have not adequately captured climate risks or the long-term economic benefits of resilience and adaptation. This limits our ability to make informed policy decisions as Africa pursues economic transformation, energy security, and fiscal stability,” she stated.
Hon. Anywar highlighted collaboration with GIZ, Makerere University, and government ministries, which led to the development of the MONCAP (Model for Natural Capital Policy Assessment). “This tool is being used to assess natural capital assets for climate change, energy transition, and their linkages to the macroeconomy. It supports budgeting by estimating the cost of depleted natural capital assets,” she said.
“Water security, forest conservation, ecosystem restoration, and climate adaptation are not costs. They are investments in Uganda’s long-term economic stability, productivity, and prosperity.”
Stakeholders urged to transform climate threats into opportunities
Adam Sparre Spliid, the Deputy Head of Mission, Danish Embassy said: “Integrating climate risk and natural capital into our macroeconomics frameworks is not only academic exercise, it is a massive de-risking strategy for private investment. By bridging the gap between government policy and planning, academia and research, and the private markets, we transform climate threats into tangible opportunities.”
Sustainability includes youth, jobs and human well-being
Dr. Steven Stone, Chair of the UN PAGE Management Board, emphasized that sustainability extends beyond the environment to encompass youth, jobs, economic growth, and human well-being. “While the environment is Africa’s foundational source of wealth, sustainable development requires balancing ecological stewardship with economic progress, including income and employment for the youth which are critical priorities for countries such as Uganda.”
Dr. Stone highlighted that UN PAGE, originating from the Rio+20 Conference, supports climate-sensitive economic policy in Africa, emphasizing that dialogue, scenario-building, cross-sector collaboration, and strong partnerships are key to advancing sustainable, inclusive, and climate-resilient development.
Africa’s Wealth Declining
In the keynote address titled, Natural Capital Accounting and Climate Change Nexus in Africa and their Impact on Fiscal Policy, Paul Jonathan Martin, Manager of Environmental Operations at the World Bank for Eastern and Southern Africa, and a specialist with over 30 years in climate and natural resources, warned that Africa’s overall wealth is under threat due to declining renewable natural capital.
“Produced capital has increased by 20%, human capital by a third, but renewable capital has declined by 30%,” Martin said. “When combined, Africa’s overall wealth trajectory has been weakening since 2010.”
He stressed that natural resources must be treated as economic assets requiring systematic accounting: “Africa’s rich natural resources are fundamental for sustainable development,” he said.
Citing examples from Ethiopia and Kenya, he highlighted successful integration of natural capital into public investment and budget decisions. “In Ethiopia, there are payments for ecosystems and investment prioritization tools. In Kenya, natural capital accounting integration into budgets has strengthened public investments. Climate change has deep, cascading effects across sectors, but Africa has major potential to lead climate solutions,” he said.
Martin also highlighted the economic benefits of climate adaptation: “From 2020–2050, the cumulative effect of adaptation on Uganda’s GDP is positive. Without action, under a dry/hot climate future, GDP could significantly deviate from projected growth paths.”
Drawing on insights from over 70 country climate and development reports produced by the World Bank, the keynote speaker highlighted the profound macroeconomic impacts of climate change across Africa. He stressed the importance of integrating climate and natural capital into macroeconomic planning. He noted that Africa’s forests, water systems, and biodiversity are vital for sustainable development but face growing threats from climate change, environmental degradation, and climate-related disasters that undermine productivity, public investment, and economic stability.
He observed that traditional macroeconomic models often fail to capture the value of natural assets and regulating ecosystem services, which are critical to both economic stability and resilience but are largely excluded from GDP calculations.
Africa-Led Solutions
Prof. Edward Bbaale, Principal, College of Business and Management Sciences (CoBAMS), stressed the importance of developing African-led solutions. “We need to champion the Africa-led model. We need approaches that fit our unique context. Africa is not here to take in other frameworks blindly,” he said.
By supporting research, training, policy dialogue and modelling innovation, the Centre of Excellence for Africa Climate Sensitive Macroeconomic Modelling (CEACM) positions Makerere University as a regional hub for advancing climate-sensitive macroeconomic policy across Africa.
He highlighted CEACM’s capacity-building programs: “Our goal is to ensure African Ministries of Finance have home-grown expertise to integrate climate and natural capital considerations into fiscal and macroeconomic policy. This is critical for long-term resilience and sustainable development,” he said.
The Principal explained that establishment of independent research centres enables Makerere University to go beyond traditional academic instruction and focus deeply on societal challenges, particularly those related to climate change, environmental degradation, and biodiversity loss.
He reported that the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling is structured to advance methodological innovation, develop new data systems, and strengthen climate-sensitive macroeconomic tools that are tailored to the African context.
MONCAP Model for Policy Assessment
Dr. Peter Babyenda, a member of faculty at CoBAMS, demonstrated MONCAP (Model for Natural Capital Policy Assessment), which integrates climate and natural capital variables into fiscal and macroeconomic planning.
“MONCAP allows policymakers to estimate the economic cost of depleting natural assets such as forests, wetlands, and water resources. It helps simulate policy options and determine how investments in natural capital yield long-term benefits,” Babyenda said. “We came up with this model to aid the Ministry of Water and Environment. This model is open—you can extend it,” he added.
He highlighted capacity-building initiatives, including short courses and the Master of Science in Macroeconomic and Investment Modelling, designed to train economists to incorporate natural capital and climate into policy planning.
International Perspectives
Sweetman Liam, Ireland’s Finance Minister, highlighted the economic value of ecosystems: “There is a deeper value of landscapes in flood prevention and biodiversity. Decision-making was informed, and people started understanding economic value,” he said.
Prof. Chukwuone Nnaemeka of the University of Nigeria emphasized collaboration with national statistical agencies: “We coordinate with the National Bureau of Statistics to develop natural capital accounting metrics. Increase the use of Natural Capital Accounting in decision-making,” he stated.
Technical and Parallel Sessions
The afternoon session featured three parallel sessions focusing on Natural Capital Accounting Methodologies and Best Practices, Climate-Sensitive Fiscal and Economic Modelling, and Natural Capital Accounting and Model Uptake and Use.
Drawing on diverse expertise, the panels highlighted innovative approaches and demonstrated that natural capital is not an environmental afterthought, but a central pillar of sustainable economic and policy planning.
The first day of the African Symposium drew to a close with interactive exhibitions at the World Café, where case studies and practical demonstrations highlighted innovative approaches to integrating climate and natural capital into economic planning. Participants actively engaged in discussions and networking, forging collaborations that promise to advance climate-sensitive fiscal and development strategies across Africa, setting a strong and optimistic tone for the days ahead.
Business & Management
First African Symposium underscores the role of the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling
During the First African Symposium on Natural Capital Accounting and Climate-Sensitive Macroeconomic Modelling held on 12th and 13th February 2026 at Makerere University-Kampala, notable speakers and experts urged government ministries and universities to initiate institutionalized approaches and frameworks to mitigate the natural capital account threats in Africa.
The discourse centred on the theme, Climate-Sensitive Macroeconomics: Rethinking Growth in Africa’s Natural Resource Base, which explored innovative approaches to integrate natural capital and climate risks into economic planning. The symposium highlighted that Africa’s economic transformation must be climate-informed and resilience-driven.
Committed to African-led capacity building, Makerere University is taking the lead in engaging other African universities to support fiscal policy in climate change modelling and analysis.
The participants and stakeholders across the globe lauded Makerere University, for partnering with the Ministry of Finance, Planning and Economic Development (MoFPED), and the Environment for Development Initiative (EfD), to establish the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM).
Highlights about the CEACM
During the symposium, the Vice Chancellor of Makerere University-Prof. Barnabas Nawangwe, the Principal, College of Business and Management Sciences-Prof. Edward Bbaale, the Dean of the School of Economics-Associate Professor Ibrahim Mike Okumu, Dr. Peter Babyenda, Dr. Wilson Asiimwe and other members of faculty, articulated the mandate of the CEACM.
Situated at Makerere University, CEACM is anchored within the School of Economics in the Department of Policy and Development Economics, under the College of Business and Management Sciences. It is aligned with the Master of Science in Economic Policy and Investment Modelling, a program jointly facilitated by Makerere University, the Ministry of Finance, Planning and Economic Development and the Bank of Uganda.
Promotion of Africa-led Modelling
Addressing the participants, the University leadership and faculty, highlighted the Centre’s strong commitment to Africa-led modelling, as its key distinguishing feature.
According to Prof. Nawangwe, the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling-is a strategic initiative addressing Africa’s climate, environmental, and fiscal challenges.
Citing Africa’s unique economic realities such as heavy reliance on natural capital, widespread informality and heightened vulnerability to climate shocks, the Centre prioritizes the development of analytical frameworks that are rooted in local contexts rather than merely adapting externally developed models. This approach ensures that policy interventions, recommendations, and investment strategies are firmly grounded in the specific economic, environmental, and social dynamics of African countries.
University-Government collaboration to safeguard Africa
The Vice Chancellor stated that the Centre builds on a strong partnership between Makerere University and the Ministry of Finance, Planning and Economic Development (MoFPED), creating a direct bridge between academic training and real-world policy application. Through this structure, the Centre is preparing a new generation of economists equipped to embed climate considerations into macroeconomic analysis and public financial management.
“Our collaboration with the Ministry stands as an example of how academia and government can work together to strengthen economic management. This partnership has advanced macroeconomic modelling capacity, supported fiscal policy analysis, strengthened public investment management systems and enhanced training for economists and planners across government institutions,” he said.
Prof. Nawangwe observed that African economies remain deeply dependent on natural resources for livelihoods, public revenues and structural transformation, yet these resources are under increasing stress from climate shocks and ecological decline. In this context, he noted that economic transformation can no longer be pursued in isolation from environmental sustainability. The Centre was therefore established to strengthen analytical tools, policy frameworks and institutional capacities that integrate climate risks, natural capital accounting and long-term fiscal resilience into macroeconomic modelling.
He noted that the Centre strengthens Uganda’s contribution to continental and global climate finance and policy platforms, including the Coalition of Finance Ministers for Climate Action (CFMCA) and the Pan-African Coalition of Finance Ministers on Climate Action (PAFMCA). By supporting research, training, policy dialogue and modelling innovation, the Centre positions Makerere University as a regional hub for advancing climate-sensitive macroeconomic policy across Africa.
Capacity-Building Support for Climate and Nature-Resilient Economic Policies
Tackling the role of universities in Climate Fiscal Policy, Prof. Bbaale commended the strong collaboration between Makerere University and government through the Ministry of Finance, Planning and Economic Development, which provides a platform for academia-policy interface.
Additionally, the partnership of Makerere University, the College of Business and Management Sciences (CoBAMS), the Environment for Development Initiative (EfD), the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM), with the Ministry of Finance, Planning and Economic Development (MoFPED), positions the University, as an active technical partner to the Coalition of Finance Ministers for Climate Action (CFMCA).
Academic training, research and policy engagement
Firmly grounded in Makerere University’s three core pillars of academic training, research, and policy engagement, the Centre brings these pillars to life by equipping students and practitioners with robust analytical skills, producing rigorous and policy-relevant research, and translating evidence into actionable insights that directly inform decisions shaping economies and communities across Africa.
Prof. Bbaale noted that the establishment of independent research centres enables Makerere University to go beyond traditional academic instruction and focus deeply on societal challenges, particularly those related to climate change, environmental degradation, and biodiversity loss.
He reported that the Centre is structured to advance methodological innovation, develop new data systems, and strengthen climate-sensitive macroeconomic tools that are tailored to the African context.
Interventions on Climate issues in Africa
Prof. Bbaale outlined the following interventions being undertaken by Makerere University to address climate issues in Africa.
- Academic anchoring through the Master of Science in Macroeconomic and Investment Modelling at the School of Economics
- Establishment of the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling, which serves as a capacity building arm for PAFMCA
- Research that integrates Natural Capital Assets into National Policy and Fiscal planning
- Capacity building through short term courses at CEACM
- Publications featuring the MoFPED and Makerere University CEACM research efforts
Prof. Bbaale informed the audience that in collaboration with the respective government ministries and sectors, Makerere University is taking the lead in drafting fiscal policy briefs using existing Natural Capital Accounts (NCA) to inform Macro-Fiscal Policies.
CEACM Shaping Uganda’s Policy landscape
Building on to Prof. Bbaale’s presentation, Dr. Peter Babyenda- a member of faculty at the School of Economics, presented the Model for Natural Capital Policy Assessment (MONCAP). With support from GIZ Uganda, the EfD Centre at Makerere University, and the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling, developed the MONCAP model for the Ministry of Water and Environment (MoWE) in collaboration with MoFPED, Uganda Bureau of Statistics (UBOS), National Planning Authority (NPA) among other stakeholders. The MONCAP model represents a holistic government approach to embedding environmental sustainability within national economic planning frameworks.
Dr. Babyenda explained that the model was developed in response to Uganda’s ambitious development trajectory, particularly the country’s 10-fold growth strategy under the National Development Plan. The model integrates natural capital accounting into macroeconomic analysis, thereby enabling policymakers to quantify environmental assets, assess climate risks and emissions, and evaluate how economic activities impact the country’s natural resource base.
Beyond tool development, Dr. Babyenda underscored the Centre’s commitment to capacity building through trainings, short courses, in addition to the Master of Science in Macroeconomic and Investment Modelling, which started this academic year (August 2025).
“To ensure capacity and produce more modellers, we are offering short courses on integrating climate and natural capital into macro models, as well as, the Master of Science in Macroeconomic and Investment Modelling. We call for continuous collaboration between policymakers, academia, and development partners so that we can develop more of these models,” he submitted.
Integrating data into macroeconomic models
Dr. Wilson Asiimwe, Senior Lecturer at the School of Economics, stressed the importance of integrating climate and natural capital data directly into macroeconomic models. He explained how forests, water, fisheries and land, which are vital for GDP and carbon sequestration, can be systematically incorporated into tools such as multiplier and CGE models using an Environmental Social Accounting Matrix.
“The first step is preparing the Social Accounting Matrix that captures all economic transactions in an economy—the demand and supply relationships among all economic agents. To integrate climate issues into CGE or multiplier models, you must map climate and natural capital data onto the existing Social Accounting Matrix of the country,” he said.
He elaborated that these models allow policymakers to simulate policy scenarios from forestry investments and infrastructure development to energy transitions, linking environmental outcomes to GDP, employment, revenue, and sectoral performance. By capturing emissions, resource use, and climate risks, Dr. Asiimwe emphasized that this approach provides actionable insights for sustainable growth, green investment, and climate-resilient planning in Uganda.
Symposium Outlook
By hosting the inaugural African Symposium on Natural Capital Accounting and Climate-Sensitive Macroeconomic Modelling, the Centre of Excellence for Africa Climate-Sensitive Macroeconomic Modelling (CEACM-established in August 2025) reinforced its role as a continental hub for research, training, and policy dialogue. The symposium was supported by the Global Green Growth Institute (GGGI) and the Partnership for Action on Green Economy (UN PAGE), with thanks to the generous contribution of its funding partners -European Union, Germany, Finland, Norway, Korea, Sweden, Denmark, and Switzerland.
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