Major sustainability drive launched in Kampala to align financial sector with global standards
The IFRS S1 and S2 Capacity Building Project, alongside a Tier IV ESG Framework was launched at the aBi Finance Partners’ Breakfast Meeting in Kampala
KAMPALA, April 29, 2026— The Governor of the Bank of Uganda [BoU], Michael Atingi-Ego, has unveiled a major sustainability initiative aimed at aligning Uganda’s financial sector with global environmental, social and governance [ESG] standards, marking a significant step towards climate-resilient and inclusive economic growth.
The IFRS S1 and S2 Capacity Building Project, alongside a Tier IV ESG Framework was launched at the aBi Finance Partners’ Breakfast Meeting in Kampala. The initiatives are being implemented in partnership with the Uganda Bankers’ Association [UBA] and the Association of Microfinance Institutions of Uganda [AMFIU], respectively.
In his keynote address, the BoU top executive emphasised the strategic importance of the new standards, describing IFRS S1 and S2 as tools that translate environmental and social impact into actionable financial decision-making.
He noted that the move would enable investors, regulators and the public to better understand how financial institutions are navigating the transition to a low-carbon economy.
“The launch of this project ensures Uganda’s financial sector will not only comply with global standards but also play a leading role in shaping sustainable finance for the future,” he said.
The Governor also commended UBA and AMFIU for their commitment to advancing sustainable finance, highlighting the collaborative effort required to drive meaningful change across the sector.
Atingi-Ego further outlined the central bank’s approach to bringing large Savings and Credit Cooperative Organisations [SACCOs] under its supervisory framework. Acknowledging their deep community roots, he said many SACCOs lack the formal systems required under central bank oversight.
“We have adopted what we would call a nurturing regulatory posture,” he explained. “This includes customised licensing requirements, targeted training, and hands-on support to help SACCOs strengthen risk management, financial controls and governance structures.”
He added that formalisation would unlock substantial benefits for SACCOs, including access to regulatory guidance, improved financial reporting systems, and deposit protection of up to UGX 10 million through the Deposit Protection Fund of Uganda. Additional advantages include integration into the Credit Reference Bureau ecosystem and access to subsidised funding through facilities such as the Agricultural Credit Facility and the Small Business Fund.
“These are structural enhancements that can catalyse growth and deepen financial inclusion,” he said.
Also speaking at the event, aBi Finance Chief Executive Officer Mona Muguma Sebuliba urged stakeholders to prioritise progress over perfection in implementing sustainability initiatives.
“We cannot afford to wait for perfection. You just must focus on progress,” she said, stressing that incremental steps often attract the right partnerships and momentum over time.
Sebuliba underscored the central role of partnerships in aBi Finance’s work, noting that collaboration has been key to advancing a sustainable and inclusive agribusiness sector in Uganda. She highlighted several milestones achieved with partners, including the development of green taxonomies, the launch of a Green Finance Fund, and the training of over 2,000 credit staff across 120 financial institutions.
Over the past 16 years, aBi Finance’s partnerships have enabled more than 2.2 million smallholder farmers, 70 per cent of them women, to access finance. The initiative has also contributed to the creation of over 300,000 jobs and unlocked nearly US$ 1.4 billion in additional lending to the agricultural sector, traditionally viewed as high-risk by banks.
The Breakfast Meeting brought together financial institutions, regulators and development partners, signalling a shift from broad sustainability discussions to concrete, structured implementation across Uganda’s financial sector.
With the launch of the IFRS S1 and S2 project and the expansion of ESG frameworks, Uganda is positioning itself to integrate sustainability into the core of its financial system, reinforcing both resilience and inclusive growth.
IFRS [International Financial Reporting Standards] is a set of accounting rules used by companies to prepare and present their financial statements in a consistent, transparent, and comparable way across countries.
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