The Bank of Uganda (BoU) and the European Investment Bank (EIB) have signed a technical assistance agreement to strengthen the national financial sector's ability to assess climate risks and channel credit toward sustainable investments.
The agreement, structured under the Greening Financial Systems Programme, was formally signed at the Kampala Serena Hotel with Bank of Uganda Deputy Governor Prof. Augustus Nuwagaba presiding over the ceremony.
Under the partnership, EIB Global will provide advisory support to help the central bank guide commercial banks and supervised financial institutions in identifying, evaluating, managing, and disclosing climate-related physical and transition risks.
Speaking at the signing ceremony, Prof. Nuwagaba explained that developing a climate-resilient financial framework is essential to unlocking the estimated US$28.1 billion in private and international capital required to finance Uganda’s Nationally Determined Contributions (NDCs) by 2030.
He emphasized that regulatory interventions must balance systemic environmental safeguards with uninterrupted private sector credit flow.
“We must strengthen resilience without unnecessarily constraining access to finance,” Prof. Nuwagaba said. “Our objective is a financial system that understands emerging risks, allocates capital into sustainable projects, and continues to finance productive activity.”
He commended EIB Global, the European Union, and donor governments, including Germany and Luxembourg, for funding the initiative in coordination with the NDC Partnership.
With this agreement, Uganda joins Kenya, Rwanda, Nigeria, and Ethiopia among African economies participating in the Greening Financial Systems Programme.
The initiative will help establish standardized green taxonomies, enhance regulatory disclosure guidelines, and support commercial lenders in issuing green bonds and expanding financing for renewable energy, sustainable agriculture, and climate adaptation projects.
