Uganda and EIB Global team up to help banks finance green growth

EIB Global will help the BoU develop a roadmap for greening the financial sector, strengthen its climate-risk disclosure framework and improve reporting by financial institutions.

Uganda's banks are being asked to pay closer attention to how climate change could affect the loans they make and the stability of the wider financial system. A new cooperation agreement between the Bank of Uganda (BoU) and EIB Global will give the central bank technical support to help make that work practical.

The partnership is part of a wider push to bring more money into green and climate-resilient investment. It will help Uganda's financial sector build the tools and know-how to identify climate risks, report them clearly and make informed decisions about where capital goes.

Turning climate rules into everyday practice

EIB Global will help the BoU develop a roadmap for greening the financial sector, strengthen its climate-risk disclosure framework and improve reporting by financial institutions. The work will also support the practical use of Uganda's National Green Taxonomy, launched in 2025 to give businesses and lenders a shared definition of environmentally sustainable activities.

The central bank will receive support to supervise climate-related financial risks and help lenders meet regulatory requirements. EIB Global will also work with selected Ugandan commercial banks on risk management, disclosure and the policies and processes needed to expand green lending. Housing Finance Bank is the first local lender set to receive this assistance.

"Banks can't manage a risk they can't see," said EIB Vice-President Marko Primorac. "Our partnership with the Bank of Uganda will help the country's financial sector identify and manage climate risk, so banks can lend to green projects with more confidence. That confidence helps attract the private capital Uganda needs for stronger climate action."

Support backed by international partners

The assistance comes through the EIB Group's Greening Financial Systems technical assistance programme, managed by EIB Advisory. Germany and Luxembourg finance the programme through the Greening Financial Systems Fund, in close coordination with the NDC Partnership, a global coalition of more than 270 countries and institutions working to advance the Paris Agreement.

Uganda joins Albania, Armenia, Bosnia and Herzegovina, Ethiopia, Georgia, Jordan, Kenya, Nigeria, North Macedonia, Rwanda and Vietnam among the countries receiving support through the programme.

"Mobilizing climate finance at the scale required depends on strong institutions and financial systems equipped to manage climate-related risks," said Pablo Vieira, Global Director of the NDC Partnership. He said stronger risk management can help Uganda attract investment that meets its climate and development priorities.

Building resilience and attracting investment

The partnership reflects the BoU's view that climate change poses a core threat to Uganda's macroeconomic stability and financial system. The government estimates the country needs $28.1 billion for climate action by 2030. Its National Climate Finance Strategy 2025–2030 calls for a resilient, transparent financial system that can attract more foreign direct investment.

Deputy Governor Prof. Augustus Nuwagaba said the country needs to strengthen resilience without unnecessarily restricting access to finance. He described the goal as a financial system that understands emerging risks, directs capital effectively and continues to support productive activity, a task that will require technical expertise, reliable information and sustained cooperation across sectors.

The agreement also supports the European Union's green-transition agenda in Uganda. Through its Global Gateway strategy, the EU and its Member States combine technical assistance, grants, loans and guarantees to improve investment conditions and help mobilise public and private funding for sustainable infrastructure and climate action.

EU Ambassador to Uganda Jan Sadek said the financial sector has an essential role in directing resources towards climate-friendly solutions, helping turn climate commitments into changes that protect people's livelihoods and future generations.