aBi Finance, together with key sector partners, has launched two transformative initiatives to strengthen sustainability standards across Uganda’s financial sector. The IFRS S1, S2, and GRI Capacity Building Programme and the Tier IV ESG Framework Development Project mark a significant milestone in the collective effort to institutionalise environmental, social, and governance (ESG) principles within financial systems.
The launch event, held on Wednesday, 29 April 2026, at Four Points by Sheraton Kampala was presided over by the Governor Bank of Uganda- Dr. Michael Atingi-Ego.
Two Projects Launched
The newly launched projects are designed to address critical gaps in sustainability reporting and ESG integration across financial institutions:
- IFRS S1 & S2 and GRI Capacity Building Programme (in partnership with the Uganda Bankers Association — UBA): This initiative will strengthen the capacity of financial institutions to report on climate-related risks and sustainability performance, aligning Uganda’s banking sector with globally recognised disclosure standards.
- Tier IV ESG Framework Development Project (in partnership with the Association of Microfinance Institutions of Uganda — AMFIU): This project will support microfinance institutions in mainstreaming ESG principles into their operations, enhancing their ability to sustainably serve vulnerable and underserved communities.
Speaking at the launch, Dr. Atingi-Ego emphasised that the two initiatives mark a critical step in aligning Uganda’s financial sector with global sustainability standards while strengthening resilience, transparency, and inclusive growth.
“IFRS S1 and S2 mark a fundamental shift in how our financial sector understands and manages risk, as it requires institutions to go beyond traditional financial reporting and integrate climate and sustainability considerations into governance, strategy, and decision-making. This positions Uganda to strengthen transparency and attract credible, long-term investment, including climate finance,” he said.
“As Tier IV institutions continue to formalise, integrating ESG principles is essential to building strong and trusted financial systems. The Tier IV ESG Framework provides a practical foundation for improving governance, enhancing transparency, and expanding access to funding, while ensuring these institutions can sustainably serve their communities and contribute to broader financial inclusion,” he added.
Alongside the project launches, aBi Finance recognised key sector partners — the Uganda Bankers Association, the Association of Microfinance Institutions of Uganda, the Economic Policy Research Centre, the Uganda Cooperative and Savings Union, the Financial Technology Service Providers Association, and the Uganda Institute of Banking and Financial Services.
Ronald Ocheng, Senior Research Officer at the Uganda Bankers Association, pointed to critical gaps in ESG implementation and the need to strengthen institutional capacity ahead of new regulatory requirements.
“Many institutions perform better in governance than in environmental and social areas, and in some cases lack sufficient evidence to support reported ESG performance, raising concerns about credibility,” he said
“This programme is designed will build practical capacity across institutions while supporting compliance with upcoming reporting requirements and strengthening the sector as a whole,” he added.
Jackline Mbabazi, Executive Director of the Association of Microfinance Institutions of Uganda, highlighted the importance of tailoring ESG approaches to the realities of Tier IV institutions, noting that the new framework will strengthen governance, promote responsible lending, and embed environmental stewardship across community-based financial systems.
“Tier IV ESG Framework will provide a practical and context-specific approach that reflects the capacity and operational realities of Tier IV institutions, while reinforcing governance, promoting responsible lending, and strengthening environmental stewardship,” Mbabazi said.
H.E. Signe Winding Albjerg, Danish Ambassador to Uganda, stated the importance of long-term partnerships and coordinated action in addressing interconnected challenges such as climate change, financial inclusion, and sustainable growth, highlighting Denmark’s continued commitment to supporting Uganda through institutions like aBi Finance.
“No single institution or partner can address today’s interconnected challenges alone. Through long-term partnerships, we have demonstrated that patient and well-structured finance can unlock investment, expand inclusion, and improve livelihoods, and these new initiatives are an important step in strengthening a more sustainable and resilient financial system,” she said.
Through the signing of memoranda of understanding, the partners reaffirmed a shared commitment to collaboration, with a common goal of promoting sustainability and mainstreaming ESG practices across Uganda’s financial sector.
“At aBi Finance, we remain committed to being a partner to the sector, supporting innovation, building capacity, and driving inclusive growth and sustainability,” said Mona Muguma Ssebuliba, Chief Executive Officer of aBi Finance.
Building on a Decade of Partnership
These initiatives build on more than 10 years of investment by aBi Finance and its partners to align Uganda’s financial sector with sustainable finance principles. This work has focused on expanding access to green and inclusive finance for smallholder farmers, women, youth, refugees, and agribusinesses.
To date, these efforts have reached over 2.2 million farmers across the country. Of these beneficiaries, over 70% are women, 42% are youth, and outreach in Northern and Eastern Uganda has significantly expanded — from less than 15% to 37%. In the process, over 300,000 jobs have been created.
Supporting Uganda’s Economic Vision
The two initiatives directly contribute to Uganda’s ambition of growing its economy to USD 500 billion by 2040, driven by agro-industrialisation, inclusive finance, and sustainable investment.
