Conservation
aBi Finance Pushes ESG Integration across Uganda’s Grassroots Financial Sector
In a move to raise Environmental, Social, and Governance (ESG) awareness and integrate governance across the grassroots financial sector, the Agricultural Business Initiative (aBi) is empowering board members and top executives from Tier 4 Financial Institutions with hands-on knowledge and practical approaches for embedding sustainability into their institutional frameworks and decision-making processes.
David Kaweesi, the Investment Manager at aBi Finance, emphasized the urgency of incorporating ESG into everyday financial operations. “We understand that the world today is not the world it was a hundred years ago, If our actions do not change and stakeholders are not involved, it will not be the world we see right now in the next fifty years,” he said
Kaweesi explained that while Uganda’s financial institutions have made commendable strides in governance mainly due to strict regulatory compliance, there is a need for balanced progress across all ESG dimensions.
“We might be doing well socially or environmentally, but we need to take a holistic approach. We must demystify ESG from being a foreign topic or subject, and actually live it out.”
Kaweesi also urged financial institutions to recognize the long-term risks of ignoring environmental issues. “It is easy to think that ‘if I lose my customer who is coming in the charcoal business, I’m losing my portfolio.’ But what happens when floods block all the roads and the car that you financed is spoiled? We must be at the forefront of environmental assessment,” he emphasized
Bangi David, CEO of Uganda Microcredit Foundation (UMF), outlined how his institution has embraced the ESG movement. “Today we have been engaging in the ESG campaign as a microfinance. We started this campaign in 2024 and were able to come up with an ESG policy,” he said.
He explained that UMF has already integrated ESG into its three-year business strategy and invested in capacity-building for its staff to support grassroots implementation. “We have developed green loans aimed at promoting ESG, including loans for tree planting and green energy like solar. We are also supporting customers in sanitation and clean water efforts, and we’ve created awareness across our staff and board,”
Recognizing the relatively recent introduction of ESG in Uganda, Bangi acknowledged that institutions are at varying stages of adoption and such training helps them come together to harmonize their approaches and also get guidance on how to grow ESG implementation from small steps to a fully embedded practice.
Mercy Sande Ainomugisha, Chief Executive Officer of Vision Fund Uganda, highlighted the importance of mainstreaming ESG in microfinance institutions. “ESG is not just a framework-it must be part of our DNA. One of my key takeaways from this training is the need to develop a specific ESG policy, align it with our strategic plan, and ensure staff are fully on board,” she said
Jane Aik, an ESG Consultant, explained the responsibility of financial leaders in promoting ESG principles
ESG isn’t just about frameworks, it is about trust. Clients trust us with their money, and that trust must be earned through transparency, inclusion, and integrity. It starts with each one of us, not just the boardrooms. If we don’t uphold these values ourselves, how can we expect the institutions we lead to follow?” she said
Musasira Cassius, an ESG Consultant, emphasized that ESG is not a foreign or imported concept, but one deeply embedded in African values and community life.
“When we care for our people, lead with integrity, and support our communities, this is already ESG in practice. It’s not just theory. It’s happening when you plant a tree, switch to clean energy, or empower youth and women. That’s ESG rooted in our culture,” he said
He also emphasized the importance of recognizing and scaling what is already being done at local levels.
“Let’s stop thinking ESG is only for big banks or international investors. Whether you’re supporting farmers, holding transparent AGMs, or running financial literacy sessions-that’s ESG. It’s ours. We just need to formalize it,” he added.
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