aBi Finance, UIBFS Launch Nationwide ESG Training Programme for Small Financial Institutions
KAMPALA, May 6, 2025 — aBi Finance in partnership with the Uganda Institute of Banking and Financial Services [UIBFS] have commenced an extensive training programme to equip smaller financial institutions across Uganda with essential Environmental, Social, and Governance [ESG] skills.
The initiative, the first of 18 planned sessions, kicked off at the Fairway Hotel in Kampala on Monday. The programme targets Tier 4 financial institutions, which currently operate without a specific ESG framework unlike their larger counterparts regulated by the Bank of Uganda [BoU].
Noah Owomugisha, Head of Impact and Sustainability at aBi Finance, stressed the urgency of addressing ESG factors, citing climate-related losses, loan defaults linked to environmental changes, and the impact of artificial intelligence as pressing concerns.
“ESG and sustainability are not some distant concern,” Owomugisha said. “You are already experiencing the impacts – losses due to climate-related events, bad loan portfolios affected by environmental changes, and even job security concerns related to AI. These are real issues we need to address.”
aBi Finance offers lines of credit, guarantees on agricultural loans, and comprehensive capacity building. The current nationwide engagement focuses on this capacity-building arm.
The programme will cover topics including supporting branch expansion into unbanked areas like refugee settlements, promoting social inclusion, ensuring good governance to minimise loan defaults, and addressing environmental sustainability.
Owomugisha highlighted the inclusion of media representatives in the training. “Our capacity building efforts are comprehensive,” he said. “For example, if you identify unbanked but critical populations, such as refugees, we can discuss supporting your branch expansion into those areas.”
He added, ”We also train your staff on aspects beyond basic credit, including social inclusion, good governance to minimize loan defaults, and the critical issue of environmental sustainability in light of climate change. Our goal is to ensure responsible and impactful financing.”
Moses Bwire, an Investment Manager overseeing Green Growth and Business Development Services at aBi Finance Limited, emphasised the training’s core objective.
“The core idea of ESG is to ensure that as financial institutions develop and offer products, they encourage environmental protection,” Bwire told reporters. “Sustainability, in this context, means that as financial institutions generate profits, they must also prioritise the well-being of the environment, the people they serve, and ensure sound governance practices.”
Bwire noted the absence of an ESG framework for Tier 4 institutions, unlike the guidelines followed by Tier 1-3 institutions through bodies like the Uganda Bankers Association [UBA]. “This training seeks to bridge a crucial knowledge gap,” he said. “We’ve identified a knowledge gap, particularly within Tier 4 institutions, which is why we’ve invited them from across the country for this training.”
Addressing financial constraints, Bwire pointed to growing interest from funders in organizations with strong sustainability credentials. He emphasised that the sessions aim to equip board and executive committee members with the knowledge to embed ESG principles into their operations and governance.
Participants shared their perspectives on integrating ESG. William Atalyeba Ateenyi, Director of Operations at Wazalendo SACCO [WSACCO], said his organisation has begun integrating ESG. “At Wazalendo SACCO, we’ve already taken initial steps towards ESG integration. Firstly, we included ESG as a strategic priority in our strategic plan. Secondly, we allocated 0.5 percent of our surplus from the last financial year, 2024, specifically for ESG implementation,” Ateenyi said, expressing confidence the training would provide valuable guidance.
Roger Mugisha Kashillingi, Head of Corporate Affairs at Letshego Uganda Limited, stressed the importance of ESG for long-term viability. “ESG isn’t just a reporting tool; it’s a way to future-proof our business,” Mugisha said, urging wider adoption of these principles.
The comprehensive programme includes 12 sessions for leaders of Tier 4 financial institutions and six for media professionals, held across Uganda from Monday through May 23. This initiative by aBi Finance and the UIBFS aims to strengthen sustainability practices in smaller financial institutions, contributing to a more robust and responsible financial sector.
https://thecooperator.news/abi-finance-injects-shs-120bln-in-green-agribusiness/
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