The seventh annual bankers’ conference, hosted by the Uganda Bankers Association (UBA) on June 19th at the Kampala Serena Hotel, buzzed with discussions on Environmental Social and Governance (ESG) issues, reflecting a growing global trend among businesses.
Under the theme “Navigating the Future of Banking: ESG, Sustainability, and Digital Transformation,” the event highlighted the strategic importance of ESG in shaping a dynamic business environment. Julius Kakeeto, Chairperson of the UBA and Managing Director of Post Bank, emphasized the rapidly evolving regulatory landscape designed to foster a sustainable future and tackle emerging challenges.
Dr. Tumubweine Twinemanzi, Executive Director of Supervision at the Bank of Uganda (BOU), praised the conference’s timing, coinciding with the adoption of global climate reporting standards. He noted BOU’s collaboration with UBA on an ESG framework, highlighting that Uganda’s approach has been driven by industry rather than imposed regulations. He also stressed the importance of governance in ESG, citing the recent closure of Mercantile Credit Bank due to undercapitalization as an example.
Keynote speaker Martin Oduor-Otieno, Chairman and CEO of Leadership Group Limited and former CEO of KCB, underscored the significance of ESG by linking it to recent climate-related disasters in East Africa. He encouraged banks to integrate ESG into their organizational purpose to promote sustainability, advocating for a holistic approach that involves boards, executives, and staff. Oduor-Otieno also highlighted ESG as a catalyst for innovation and a means to achieve Sustainable Development Goals (SDGs).
Oduor-Otieno shared insights from Kenya, where banks are mandated to report climate risks, underlining the potential costs of non-compliance. He mentioned Kenya’s Sustainability Financing Initiative, a comprehensive training program for bank boards, management, and staff, and cited the issuance of a $43 million green bond by the Acorn Group as a pioneering move in East Africa.
The conference also saw contributions from Ramathan Ggoobi, Permanent Secretary in the Ministry of Finance, who discussed the government’s progress on the fourth National Development Plan and the establishment of a climate-financing unit to attract investments.
During a panel discussion, Dr. Twinemanzi reiterated the crucial role of governance in ESG, highlighting that effective environmental strategies require robust governance structures. Winnie Tarinyeba Kiryabwire, Chair of the Board at dfcu Bank, showcased the bank’s ‘Women in Business’ program, which has empowered 42,000 women through financial inclusion and credit training since 2007.