aBi Finance and UIBFS equip small financial institutions with crucial ESG skills
This capacity-building initiative targeted top management and board members of Savings and Credit Cooperative Organisations [SACCOs] and microfinance institutions, particularly Tier 4 financial institutions, which currently operate without defined ESG frameworks
FORT PORTAL CITY, May 23, 2025 –– In a move to strengthen sustainability in Uganda’s financial sector, aBi Finance Limited, in partnership with the Uganda Institute of Banking and Financial Services [UIBFS)], has equipped leaders of smaller financial institutions with essential Environmental, Social, and Governance [ESG] skills.
This capacity-building initiative targeted top management and board members of Savings and Credit Cooperative Organisations [SACCOs] and microfinance institutions, particularly Tier 4 financial institutions, which currently operate without defined ESG frameworks.
The training was held yesterday at Kalya Courts in Fort Portal City.
David Kaweesi, Investment Manager for Financial Services at aBi Finance, emphasised the importance of focusing on SACCOs and microfinance institutions due to their proximity to smallholder farmers.
“These are the institutions closest to the grassroots, and smallholder farmers rely on them for financial services,” Kaweesi noted. He added, “Unlike larger financial institutions regulated by the Bank of Uganda, many of these smaller entities operate without structured ESG guidelines.”
Kaweesi highlighted pressing challenges such as climate-induced losses, loan defaults linked to environmental disruptions, and job security issues driven by artificial intelligence. He stressed that ESG is not an abstract concept but a practical tool to help financial institutions align with sustainable practices.
“The core objectives of ESG are to ensure that as financial institutions develop and offer products, they promote environmental protection and social responsibility,” he explained.
Participants in the training explored topics such as promoting social inclusion, enhancing governance to reduce loan defaults, and addressing environmental sustainability. Discussions also included innovative green financing products, such as solar loans.
Henry Segawa from UIBFS expressed optimism that the initiative would empower institutions to effectively adopt and implement ESG strategies.
“We want to see financial institutions not just survive but thrive sustainably. Green energy products and sustainable policies will be key going forward,” he said.
Participants shared key insights from the session. Wilberforce Lugemwa, Chairperson of Bagez SACCO in Mubende district, admitted that while elements of social and governance practices had been implemented, the environmental aspect was largely overlooked.
“One of the key lessons for us is to avoid financing activities that harm the environment and to begin formulating policies that fully embrace ESG principles,” Lugemwa stated.
Susan Mbambu, Manager of Karambi SACCO in Kasese district, shared how climate change has significantly affected agricultural productivity in her region.
“Our farmers have been battling droughts and floods, which has impacted loan repayment rates,” she said. “This training has inspired me to raise awareness among our members about environmental conservation and sustainability.”
aBi Finance continues to support agricultural finance through lines of credit, loan guarantees, and institutional capacity building. With ESG now on the agenda, Uganda’s small financial institutions are being empowered to grow responsibly while safeguarding the environment and the communities they serve.
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