Overview:
Ms Mona B M Ssebuliba, the Chief Executive Officer of aBi Finance, said the Fund intends to cushion farmers who are facing vagaries of bad weather caused by climate change.
Agricultural Business Initiative (aBi) Finance Limited has launched the Green Finance Fund that is intended to help farmers navigate through climate change effects by practicing sustainable agriculture.
Speaking at the launch in Kampala on Tuesday, 06 December 2022, Ms Mona B M Ssebuliba, the Chief Executive Officer of aBi Finance, said the Fund intends to cushion farmers who are facing vagaries of bad weather caused by climate change.
“Smallholder farmers and agribusinesses continue to suffer from climate change vagaries evidenced by changing rainfall patterns, drought, and temperature rise,” Ms Ssebuliba said.
“So this is a call to Tier 1, 2,3 and 4 financial institutions, to apply for the Green Lines of Credit, and Financial Services Development support – a capacity building so that together, we can contribute to a competitive, profitable and sustainable agriculture & agribusiness sector,” she added.
Ms Ssebuliba urged individuals and companies to visit the aBi Finance website http://abi.co.ug and download a copy of the green agribusiness taxonomy.
Ms Charity Ekudu, an aBi Finance Board Member, said the country is paying a heavy price due to climate change and that it is time for various stakeholders to act.
“We are taxed on the environmental side and we need to pay our dues. We have had various ups and downs because of climate change. We are here to offer Green Finance Fund to address challenges in climate,” Ms Ekudu said.
Ms. Jacqueline Mbabazi, the CEO of Association of Microfinance Institutions of Uganda, welcomed the new initiative.
“The issue of climate change affects us as financial institutions. Our biggest stakeholders are the small holder farmers and are the most affected by climate change. With this therefore, there is need for climate change mitigation interventions through the Green Finance Fund,” Ms Mbabazi said.
Speaking at the event, Danish Ambassador Signe Winding Albjerg said: “In 2010, we co-founded aBi. We have since supported more than 1.2m farmers many of whom are women. We are pleased with the launch of the Green Finance Fund.”
She added: “As the Royal Danish Embassy, we shall continue to support all interventions of the Green Finance Fund. We extend gratitude to the government of Uganda for the good policies that enable us operate. I would like congratulate the Board of aBi for the launch of the Green Finance Fund.”
Deputy Governor Dr. Michael Atingi-Ego welcomed the fund, saying it is in line with their Central Bank’s strategy of promoting and funding green investments.
“I would like to thank aBi for promoting ESG through an inclusive approach that brings all the stakeholders, such as development partners, MDAs, apex bodies, FIs, research and training institutions,” he said.
“BoU will continue supporting aBi green initiatives that are helping to alleviate negative effects of climate change which is causing risks for smallholder farmers, agribusinesses and financial institutions. Through sustainable climate change interventions, we are enhancing livelihoods of 70 percent of Uganda,” he said.
The Deputy Governor further said Uganda’s inflation for November, which stood at 10.6% was largely driven by food inflation.
“How are we going to address this if we still rely on the prevailing circumstances? The Bank is moving towards supporting Agriculture more. We are partners in this process of Green Finance Fund,” he said.
Mr. Wilbrod Owor from the Uganda Bankers Association also said: “I salute aBi Finance for walking this journey of the Green Finance Fund along the agribusiness chain. We would like to thank BU for prioritizing green investments and embracing this direction.”
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