Uganda unveils climate finance facility

Uganda Development Bank (UDB), has launched the UDB Climate Finance Facility (CFF) to promote climate-smart agriculture, ensure climate resilient infrastructure and low carbon industries.

Managing Director UDB Ms. Patricia Ojangole said on Wednesday; “The increasing threat of climate change and environmental degradation has the potential to present high socio-economic risks to the economy.

“As the impacts continue to manifest through floods, drought, landslides, animal and crop epidemics among other signs in different parts of the country, they are more deleterious to the poor and marginalized who depend largely on natural resources for their livelihoods.”

“The vulnerability of Uganda’s population requires the urgent need to adapt and maintain future economic growth opportunities by transitioning to a low carbon (green) economy.

“This will require massive investment in green technologies. Green finance will be central to providing the flows of capital required. This is primarily driven by the fact that most green technologies are characterized by high capital intensity and consequently high upfront financing requirements,” Ojangole explained while at the high-level launch held at Mestil Hotel in Kampala.

As a financial intermediary, the Bank will stimulate green economic growth by coordinating green financing options, mobilizing and increasing access to green finance by structuring and providing tailored products to address market gaps including risk mitigation products, and providing the right products to address investment demand in the green sector.

“I would like to thank UDB for this intervention. Without appropriate funding, we cannot build the capacity to adapt to these impacts, to mitigate these impacts, or even build resilience. Am delighted that financial institutions are starting to realize their role in the climate change agenda and strategically getting involved,” Ramadhan Ggoobi, Permanent Secretary/Secretary to the Treasury said at the launch.

The initiative will foster climate-conscious change in investments with a clear objective of building climate resilience among the businesses supported.

The facility will target climate change mitigation and adaptation initiatives that are aligned with the Bank’s priority sectors.

The facility will provide opportunities along value chains and supply chains that target to combat climate change impacts through evidence-based and innovative climate-smart technologies.