Makerere University hosted a high-level roundtable bringing together researchers from the EfD Uganda, representatives from the GRO Foundation, and the Bank of Uganda to explore alternative financing mechanisms for climate action and sustainable development.
GRO is an acronym for Greehouse Gas+Reforestation+Offset established as a national affiliate to GRO Foundation. GRO Uganda is a social impact organisation that alleviates poverty at the grassroot level through unlocking climate finance. It creates a financial product for national, regional and international markets which are carbon certificates.
The roundtable discussion focused on Building Capacity and Market Readiness for Green and SDG-Linked Financing Mechanisms through Private Sector Mobilisation Towards Achieving the 10-Fold Economic Transformation (ATMS) and highlighted Uganda’s urgent need to expand climate financing, build institutional capacity, and strengthen evidence-based policymaking amid growing climate and economic challenges.
Need for building capacity on climate finance
EfD-Mak Research Fellow, Peter Babyenda, highlighted the center’s ongoing work in advancing climate-smart agriculture through the Inclusive Green Economy program. He emphasized that significant financing is required to help farmers and enterprises adopt climate-resilient technologies. The partnership between EfD-Mak and the GRO Foundation aims to support financial institutions and private sector actors in mobilizing and accessing climate finance for such investments.
Peter Babyenda stressed that capacity-building initiatives are central to scaling green investments. He noted that EfD-Mak has partnered with the Ministry of Finance to provide evidence supporting climate action, with a focus on technical training, stakeholder linkages, and policy research. The roundtable serves as the initial step in a deeper collaboration between EfD-Mak and GRO to strengthen Uganda’s climate finance readiness.
He underscored the importance of aligning institutional efforts for effective climate investment.
“For you to promote climate-smart agriculture, you need people who can provide finances for farmers to buy the technologies,” he said.
Mobilizing private capital for green growth
Professor Edward Bbaale, Principal of the College of Business and Management Sciences and Director of EfD-Mak, highlighted Uganda’s growing climate vulnerability, citing abnormal weather patterns as evidence. He stressed that achieving Uganda’s ten-fold economic transformation, which the government is aiming for, requires a robust financing ecosystem that promotes sustainability, innovation, and private sector involvement. He estimated that US$228 billion is needed to implement the country’s NDCs, but highlighted the existing barriers in accessing climate finance.
Edward Bbaale emphasized capacity building as a cornerstone for Uganda’s green economic transition. Partnerships with government, GRO, and international actors are essential for generating evidence-based policies and supporting climate-responsive planning.
He also stressed the need for data-driven decisions in policy and finance.
“If the environment is hitting output and therefore inflation, then monetary policy must speak to environmental shocks,” Bbaale said, highlighting the direct impact of climate change on economic indicators and the importance of natural capital accounting, fiscal reforms, and institutional strengthening.
GRO Foundation pledges $1 billion annually
The Executive Director of GRO Foundation, Laban Joshua Musinguzi, pledged to mobilize US$1 billion per year over the next five years to support Uganda’s climate finance ambitions and economic transformation goals. He described the roundtable as both a tribute to the late Governor Emmanuel Tumusiime-Mutebile and a call to accelerate Uganda’s readiness for market-based climate finance. The foundation focuses on innovative financial instruments, such as green bonds, carbon certificates, and sustainability bonds, to unlock climate finance.
Laban Joshua Musinguzi highlighted Uganda’s current challenges in accessing global climate finance, including limited ESG (Environmental, Social, and Governance) integration and delays in documentation, reporting, and compliance. He stressed the importance of institutional capacity, stating that climate finance is not just about awareness but effective implementation. He also outlined GRO’s “Fantastic Four framework,” which focuses on forests, food and water security, education, skilling, and green jobs, aligning the foundation’s work with national development priorities.
“Today is memorable because we are here to honour a legacy and inspire the future,” Laban Joshua Musinguzi said, paying tribute to Mutebile’s vision for resilient financial ecosystems. He reaffirmed GRO Foundation’s commitment to mobilizing actual inflows, not just pledges, emphasizing the foundation’s track record of US$1.5 billion mobilized and the ambition to reach US$10 billion in the coming year.
Embedding sustainability in Uganda’s financial sector
Bank of Uganda’s Director of Strategy and Innovation, Prisca Ampumuza Rwamare, detailed how the Bank of Uganda is integrating sustainability and ESG standards (Environmental, Social, and Governance) into its financial system to strengthen resilience and support national development goals. She noted that stable financial institutions prepared for climate shocks are crucial for achieving Uganda’s SDG and economic transformation ambitions. Under BoU’s 2022–2027 strategic plan, sustainability has become central to monetary policy, financial stability oversight, and risk management frameworks.
Prisca Ampumuza Rwamare highlighted regulatory and operational reforms, including an ESG framework for the banking sector, climate-related financial risk guidelines, and sector-wide training programs. She emphasized that sustainable finance requires more than policy updates. It needs cultural change, innovation, and capacity building within institutions. BoU is collaborating with international partners to improve supervision, knowledge, and tools to meet global ESG standards.
“Sustainable development is no longer optional. It is central to building long-term economic resilience,” she said, reinforcing the Bank’s commitment to ensuring that environmental and social standards are embedded in all operations. She concluded that sustainability is now fully integrated into BoU’s functions, setting a precedent for replication across Uganda’s financial sector to achieve meaningful impact.
Participants chart path to green and SDG-linked financing
A panel moderated by Canary Mugume, including Dr. Peter Babyenda (Climate Finance Economist, Makerere University), Ms. Elizabeth Mwerinde (Head of Commercial Banking, Ecobank), and Dr. John Sseruyange (Environmental Economist, Makerere University), examined Uganda’s readiness for green and SDG-linked financing, focusing on institutional perspectives and market preparedness.
Speakers emphasized that sustainable development is no longer optional for Uganda. It is a strategic imperative for economic transformation. While the country’s macroeconomic fundamentals remain strong, the green component of the economy is underdeveloped. Global shifts are creating new opportunities through green finance networks, SDG-linked instruments, and carbon markets, but Uganda must build capacity to leverage these opportunities fully.
The panel highlighted the strategic role of diverse actors in mobilizing green finance. Academia, the private sector, financial institutions, and government all share responsibility, and partnerships should extend to religious and cultural leaders to influence public awareness. The private sector was identified as the main driver for Uganda’s economic transformation.
Despite potential, several challenges persist. Low institutional awareness, limited readiness among financial institutions, and a weak pipeline of bankable green projects hinder progress. Critical data gaps were noted, with Uganda having “data sets, not databases,” and research outputs often failing to sufficiently inform policy or investment decisions.
Panelists stressed the need for evidence-based approaches. Different sectors require tailored policy instruments, and academia and think tanks play a vital role in guiding government policies, investment design, and risk assessment. Institutions must deepen their understanding of green financing mechanisms, climate risks, and ESG compliance, while transparency and reporting standards must be strengthened across the financial system.
Innovations and ongoing initiatives provide a glimpse of progress. The launch of a Sustainable Finance Curriculum for financial institutions and platforms such as the monthly “Carbon Tuesdays” at Kati Kati are building capacity and fostering innovative ideas on carbon markets and climate finance. The government’s role in shaping regulatory frameworks, deploying incentives, guarantees, blended finance, and public-private partnerships was highlighted as essential.
Mobilizing private capital was presented not as a substitute for public finance, but as a critical complement that expands Uganda’s financing capacity. The country’s credibility, transparency, and ability to manage large-scale investments are key to attracting private investors, alongside a clear pipeline of viable green instruments.
The roundtable concluded with a call for a renewed strategy. Uganda must scale up bankable green projects, strengthen institutional capacity, and ensure that partnerships, credible data, strong governance, and unified sectoral commitment guide the transition to a green economy and sustainable development.
By Jane Anyango