Uganda's BoU launches ESG and climate disclosure initiatives

Michael Atingi-Ego, Governor of the Bank of Uganda, launched two transformative initiatives at a Partners' Breakfast Meeting on April 29, 2026. These projects aim to fundamentally reshape how Uganda's financial sector measures, manages, and reports on sustainability.

Global standards, local capacity

The first initiative focuses on IFRS S1 and S2 Capacity Building, implemented in partnership with the Uganda Bankers' Association.

These International Financial Reporting Standards, adopted via a roadmap in September 2024, require institutions to disclose how sustainability and climate-related risks shape their business models and strategic commitments.

The Bank of Uganda (BoU) issued supervisory guidance in November 2025, mandating adherence to these standards for accounting periods beginning on or after January 1, 2028.

This aligns with Uganda's National Climate Finance Strategy and National Green Taxonomy, both launched in 2025.

The capacity-building project is crucial to close technical gaps, ensuring the financial sector is competent, not just compliant, by 2028.

As Governor Atingi-Ego stated, 'The financial system does not exist apart from the social and environmental systems within which it operates.

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Nurturing microfinance ESG

The second initiative introduces the Tier IV ESG Framework, developed with the Association of Microfinance Institutions of Uganda.

This targets Savings and Credit Cooperative Societies (SACCOs), brought under Bank of Uganda supervision in June 2023.

SACCOs meeting financial thresholds must apply for licensing by September 30, 2026.

The BoU supports this transition with a 'nurturing regulatory posture,' offering training and assistance to build robust risk management and governance.

Formalisation provides licensed SACCOs with deposit protection, credit information access, and funding.

This framework aims to integrate sustainability reporting across all financial tiers, enhancing data quality and unlocking new funding avenues for microfinance institutions, aligning with their community focus.

A systemic shift

These initiatives signify a fundamental cultural transformation, integrating sustainability into Uganda's financial system beyond mere compliance.

By fostering transparency and long-term stewardship, the nation positions its sector to lead in the global transition to sustainable finance.

This proactive approach is crucial for effectively managing climate and sustainability risks, now recognized as core financial risks.