Makerere University on Wednesday hosted a high-level policy dialogue bringing together researchers from the Environment for Development (EfD-Mak) Centre, representatives from the Green Gas + Reforestation +Offset (GRO)  and  Bank of Uganda, to explore alternative financing mechanisms for climate action and sustainable development.

The roundtable, held ahead of the Tumusiime-Mutebile Annual Public Lecture, focused on “Building Capacity and Market Readiness for Green and SDG-Linked Financing Mechanisms through Private Sector Mobilisation Towards Achieving the 10-Fold Economic Transformation (ATMS).”

Discussions highlighted Uganda’s urgent need to expand climate financing, build capacity among financial institutions, and strengthen evidence-based policymaking as climate shocks increasingly affect productivity and inflation.

Partnership With GRO Will Build Capacity for Climate Finance Access – Peter Babyenda

EfD-Mak Policy Engagement Specialist and Research Fellow Peter Babyenda said the centre is implementing an Inclusive Green Economy capacity-building program, with this year’s focus on climate-smart agriculture—an area that requires substantial financing for farmers and enterprises.

“For you to promote climate-smart agriculture, you need people who can provide finances for farmers to buy the technologies,” he said.

Babyenda explained that EfD-Mak’s collaboration with GRO is aimed at equipping the private sector and financial institutions with the capacity to mobilize and access climate finance, especially for climate-smart investments.

He added that EfD-Mak has recently partnered with the Ministry of Finance to provide evidence for climate action and stands ready to support GRO through stakeholder linkages, technical training and policy research.

“This roundtable is the start of our collaboration with GRO,” he noted, emphasizing that both institutions are aligned in scaling capacity and readiness for climate financing.

Uganda Must Mobilize Private Capital to Meet Climate and Growth Goals– Prof. Bbaale

Delivering the keynote address, Prof. Edward Bbaale, Principal of CoBAMS and Director of EfD-Mak Centre, warned that abnormal weather patterns such as the extreme heat recorded in November underscore Uganda’s growing climate vulnerability.

“When 26th November feels like January or July, then something is not working well with our environment,” Bbaale said.

He stressed that Uganda’s ambition to achieve a ten-fold economic transformation requires a financing ecosystem that supports sustainability, innovation and private sector participation. He noted that Uganda needs US$228 billion to implement its Nationally Determined Contributions (NDCs), yet climate finance access remains constrained.

“The question is not whether we can participate in the global green financing momentum, but how quickly and effectively we can mobilize the private sector and strengthen institutional capacity,” he said.

Bbaale Reaffirms EfD-Mak’s Readiness to Build Capacity and Partner Across Sectors

Prof. Bbaale placed strong emphasis on capacity building as a cornerstone of Uganda’s transition to a green economy. He highlighted EfD-Mak’s ongoing regional program that trains senior civil servants from five East African countries on using fiscal policy to spur green transformation.

“At the EfD-Mak Centre we believe that knowledge, evidence and partnerships are essential ingredients for real transformation,” he said. “We are ready to collaborate with government, with GRO, with international partners to build the capacity needed to advance climate-responsive and SDG-aligned economic planning.”

He underscored that Makerere University has become more open to partnerships and is pursuing a research-led, innovation-driven agenda, adding that such collaboration is central to the university’s strategic plan.

“Makerere is now more collaborative than ever before. As a research-led university, our success depends on partnerships, knowledge-sharing and internationalisation,” he said.

Bbaale Stresses Need for Evidence to Guide Policy, Fiscal and Monetary Decisions

Bbaale highlighted that researchers must generate real-time evidence to support government and financial sector decisions, especially as climate shocks begin to influence macroeconomic indicators such as inflation.

He noted that changing weather patterns have altered harvest cycles, with crops maturing earlier and reducing food availability—factors that directly affect inflation and complicate the Bank of Uganda’s monetary policy operations.

“If the environment is hitting output and therefore inflation, then monetary policy must speak to environmental shocks,” he said.

Bbaale also pointed to the critical need for natural capital accounting, fiscal policy reforms, and institutional strengthening to enable Uganda to unlock climate finance and achieve sustainable economic growth.

Prof. Bbaale urged participants to use the roundtable to diagnose gaps in market readiness, strengthen networks, and advance financial innovations that complement public funding.

“Let us approach today not just as an event, but as part of a broader national commitment to building resilient, green and inclusive economies,” he said.

He encouraged active engagement throughout the session and assured stakeholders that EfD-Mak would continue to support national, regional and global climate initiatives—including the Coalition of Finance Ministers for Climate Action, where Uganda currently serves as co-chair.

GRO Foundation Pledges to Mobilise $1 Billion Annually as Uganda Ramps Up Green and SDG-Linked Financing

Executive Director of the GRO Foundation Laban Joshua Musinguzi, announced that the organisation is committing to mobilising US$1 billion every year for the next five years to support Uganda’s climate finance ambitions, alternative financing mechanisms and the country’s broader goal of economic transformation.

Musinguzi described the session as both a tribute to the legacy of the late Governor Emmanuel Tumusiime-Mutebile and a call to accelerate Uganda’s readiness for innovative and market-based climate finance.

He opened his remarks by honouring the late Mutebile as a pioneer of macroeconomic stability, institutional reforms and private-sector-led growth.

“Today is memorable because we are here to honour a legacy and inspire the future,” he said. “Mutebile’s vision for resilient financial ecosystems still runs in the blood of young economists and statisticians. I am one of them—I studied here, so I am back home.”

He added that Mutebile’s emphasis on private sector participation remains central to Uganda’s ability to mobilise the financing needed for green growth.

Mr. Musinguzi explained that the GRO Foundation—Greenhouse Gas Reforestation Offsets is a social enterprise committed to alleviating poverty by unlocking climate finance through innovative financial instruments.

“We unlock climate finance by creating financial instruments,” he said.
“These include green bonds, carbon certificates, sustainability bonds and commodity-backed bonds.”

He highlighted that GRO is an “interesting space open to disruptive technology,” and reaffirmed the foundation’s willingness to deepen its partnership with Makerere’s EfD-Mak Centre, financial institutions and government agencies.

The foundation works under the “Fantastic Four framework”—forestation and deforestation, food security, water security, education and skilling, and green jobs—with the current engagement at Makerere falling under the education and skilling pillar.

Musinguzi said Uganda aims to transform its economy to US$500 billion by 2040, but global shifts are demanding new sources of capital, including green financing, SDG-linked financing and capital markets.

“COP30 reinforced alternative financing as key for developing economies,” he said, adding that Uganda made commitments at the global climate conference to accelerate green bonds and SDG-linked bonds.

Uganda is currently implementing five climate finance strategies—among them the green taxonomy and the climate financing vehicle but Musinguzi  stressed that implementation now matters more than awareness.

“We are in the last phase of the SDG agenda. We have no time for awareness—we have time for implementation,” he said.

Gaps in Uganda’s Readiness: ESG Integration Still Below 20%

Musinguzi  outlined several gaps affecting Uganda’s readiness to access global climate finance: Only 30–40 financial institutions have internal ESG reporting frameworks; Less than 20% of climate risk guidelines have been integrated into credit products; Commercial banks lack clarity on what qualifies as a “green loan” and that Uganda’s regulatory frameworks have not evolved at the pace of technological disruption

He added that Uganda’s first carbon revenue—about US$40 million took nearly a decade to materialise, underscoring how delays in documentation, data and compliance slow financing.

“We must demonstrate institutional capacity through monitoring, reporting and evaluation systems to unlock financing,” he said.“We must be ready for this money.”

GRO’s Track Record: $1.5 Billion Already Mobilised, New Target of $10 Billion

Musinguzi reported that GRO has already mobilised US$1.5 billion, a commitment made at COP Azerbaijan and later presented during Uganda’s National SDG Conference and the Ministry of Water and Environment’s annual reports.

For 2025–2026, the foundation has set a more ambitious target: “We aim to mobilise US$10 billion next financial year.” He emphasised that when GRO says “mobilise,” it means actualinflow, not mere pledges.

“We mobilise, not promise,” he said. “By the time we call it mobilising, we have already brought the money into the country.”

These funds will support Climate finance business windows, Carbon certification schemes (100 million certificates already registered), Private-public-community partnership models and Clean energy, food security, waste management and youth skilling programmes

Concluding his remarks, Musinguzi  urged policymakers, academia, financial institutions and development actors to treat climate finance readiness as a national priority.

“The conversation begins here,” he said. “If not now, then when? And if not us, then who?”

He reaffirmed GRO Foundation’s commitment: “We are ready to mobilise US$1 billion every year for Uganda for the next five years.”

Bank of Uganda Positions Sustainability at Core of Financial Sector Reform

The Bank of Uganda (BoU) has intensified efforts to embed sustainability and Environmental, Social and Governance (ESG) standards across the country’s financial system, describing sustainable development as a “strategic imperative” for Uganda’s long-term economic resilience.

Prisca Ampumuza Rwamare, BoU’s Director of Strategy and Innovation, said Uganda cannot achieve its development goals or meet global commitments without a stable, forward-looking financial sector that is prepared for climate shocks, demographic shifts and resource pressures.

“Sustainable development is no longer optional. It is central to building long-term economic resilience,” Ampumuza said, noting that Mutebile himself consistently emphasised the impact of financial institutions on society.

She revealed that the Bank has redefined its purpose and mission under the 2022–2027 strategic plan to reflect its commitment to socioeconomic transformation. “We had to rethink our business model and strategy,” she said. BoU has integrated sustainability into monetary policy operations, financial stability oversight, payment systems modernisation and risk management frameworks.

The central bank has also signed up for the Sustainability Standards Certification Initiative and revised its corporate social responsibility policy to align with ESG priorities.

Ampumuza highlighted several regulatory steps already underway. In partnership with the Uganda Bankers Association, BoU co-developed an ESG framework for the banking sector, launched in June 2024, with commercial banks now reporting quarterly on progress. BoU has also issued guidelines for managing climate-related financial risks and is reviewing its micro- and macro-prudential supervisory tools to enforce ESG compliance.

A key concern, she said, is preventing “greenwashing” in the financial sector. “We take this very seriously,” she noted, warning against superficial sustainability claims that do not reflect real environmental or social impact.

Innovation, Culture Shift and Collaboration Critical

According to Ampumuza, sustainable finance cannot be achieved through policy updates or digital systems alone. She stressed the need for institutional culture change, data-driven supervision and innovative solutions. That week she said the Bank launched an ambitious Innovation Strategy to support this transformation.

She noted that BoU is undergoing a culture change programme to empower its young workforce over 100 newly recruited staff to champion SDGs and sustainable finance within a traditionally cautious institution.

BoU is also collaborating with international partners including the World Bank, IMF, IFC and the global Network for Greening the Financial System (NGFS) to strengthen policy frameworks and build capacity.

Despite progress, Ampumuza said banks continue to struggle with implementing sustainable finance principles due to capacity gaps, absence of baseline ESG data and limited availability of bankable green projects. She revealed that BoU, the Uganda Bankers Association and the Institute of Bankers recently completed a curriculum on sustainable finance to support sector-wide training.

Ampumuza concluded that sustainability is now fully integrated into BoU’s internal operations. A dedicated department and ESG coordination division have been established, and all projects across currency management, logistics and infrastructure must demonstrate compliance with environmental and social standards. “If this is replicated across the banking sector, we will make significant impact,” she said.

Participants Chart Path to Green and SDG-Linked Financing

A panel, moderated by Canary Mugume, comprising Dr. Peter Babyenda, a climate finance economist from Makerere University, Ms. Elizabeth Mwerinde, Head of Commercial Banking at Ecobank, and Dr. John Sseruyange, an environmental economist at Makerere University examined Uganda’s readiness for green and SDG-linked financing, with a special focus on institutional perspectives and market preparedness.

The discussion underscored that sustainable development is no longer optional for Uganda—it is a strategic imperative for economic transformation. Global financial shifts are creating new opportunities through green finance networks, SDG-linked instruments, and carbon markets. Yet, while Uganda’s macroeconomic fundamentals are strong, the greening component of its economy remains weak.

Speakers emphasized the strategic role of diverse actors in mobilizing green finance. Academia, the private sector, financial institutions, and government all share responsibility, but partnerships must also reach beyond traditional stakeholders to include religious and cultural leaders who can influence public awareness and mindsets. The private sector, in particular, was identified as the engine for Uganda’s ambitious economic transformation.

Despite the potential, persistent challenges remain. Low institutional awareness, limited readiness among financial institutions, and the absence of a strong pipeline of bankable green projects hinder progress. Critical data gaps were highlighted, with Uganda possessing “data sets, not databases,” and research outputs were said to insufficiently inform policy and decision-making.

Panelists stressed the need for evidence-based approaches: different sectors require tailored policy instruments, and academia and think tanks have a vital role in guiding government policies, investment design, and risk assessment. Institutions must deepen their understanding of green financing mechanisms, climate risks, and ESG compliance, while reporting standards and transparency must be strengthened across all levels of the financial system.

Innovations and ongoing initiatives offer a glimpse of progress. The launch of a Sustainable Finance Curriculum for financial institutions and platforms like the monthly “Carbon Tuesdays” at Kati Kati are building capacity and creating space for innovative ideas on carbon markets and climate finance. Meanwhile, the government’s deliberate role in shaping regulatory frameworks and deploying policy instruments—including incentives, guarantees, blended finance, and public-private partnerships—was highlighted as essential.

Mobilizing private capital was presented not as a replacement for public finance, but as a critical complement, expanding Uganda’s financing capacity. The country’s credibility, transparency, and demonstrated ability to manage large-scale investments are key to attracting private investors, alongside a clear pipeline of viable instruments.

The roundtable concluded with a call for a renewed strategy: Uganda must return to the drawing board, scale up bankable green projects, and strengthen institutional capacity. Success, panelists agreed, will depend on partnerships, credible data, strong governance, and unified commitment across sectors—a holistic approach to greening Uganda’s economy and advancing sustainable development.

Jane Anyango is the Communication Officer, EfD-Mak Centre