aBi Finance Ltd has partnered with the Uganda Institute of Banking and Financial Services(UIBFS) to train bankers on how to identify and fund green projects.
Speaking during the training session for Kampala held at Silver Spring Hotel in Bugoloobi, a climate finance professional from the UIBFS, it is high time the financial sector is made alive to the global issue of climate change which is threatening mankind.
"We are all alive to what is going on in the world. The climate crisis ravaged our lives and economies. A significant percentage of our GDP is lost to this crisis through droughts and floods. We therefore need the banking system and bankers to understand the challenges brought about by climate change and how to mitigate them by integrate it within their product offerings,"
"If they can embrace the green economy to reduce carbon emissions, it will go a long way in helping everyone slow down the effect of climate change."
He explained that the banking system as the biggest component of the financial system can do a lot to integrate the green or sustainable elements within their loan facilities.
"Maybe they have not been trained to report whatever they do as green but also how to streamline whatever they do to lead to a sustainable life. What we are trying to show them now is that unless we join hands in creating a sustainable environment, we shall all lose out. This is characteristic of agriculture and tourism among others and the banking sector is the net funder of these sectors and therefore ought to appreciate and implement funding green project in these sectors."
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Last year, aBi Finance Limited released shs120 billion to over 30 financial institutions around the country to support environmentally friendly projects aimed at mitigating climate change.
Speaking on Wednesday, Noah Owomugisha, the head of green growth and business development services at aBi Finance Limited, the training is aimed at preparing bankers to mind environmental, social, and governance aspects in their operations.
"Ee want to build capacities of financial institutions staff to be able to handle green financing which is relatively new. There is need for literacy creation and preparation for financial institutions to be able to deliver it to the agribusiness sector,"Owomugisha said.
"Green financing is important since it takes care of doing business in a way that protects the environment, socially inclusive and one that is well governed and this is what leads to sustainability. Green financing looks at investing in projects which give profits, socially inclusive leaving no one behind but don't have negative footprint on the environment. This is something new, unlike before."
According to officials, aBi-funded trainings are targeting financial institutions that signed up to implement the Green Financing, with a hope that others that are not part of it will also get on board through different initiatives.
The training sessions will initially target lower and middle-level managers including loans officers and branch managers.
