Prototypes for the Green Finance Strategy 2021-2030, Uganda
Policy Brief | Uganda, 2022
Green finance is urgently required to transition Uganda to a green economy and must involve the private sector, particularly micro, small and medium enterprises (MSMEs). The National Planning Authority is developing a Green Finance Strategy with the goal to achieve the green finance objectives of the Uganda Green Growth Development Strategy (UGGDS) that is to drive sustainable economic growth, eradicate poverty, create decent jobs and conserve natural ecosystems.
At the same time, Green MSMEs are well positioned to absorb green finance and deliver on the UGGDS goals due to their social-environmental-economic focus but face challenges of their own including lack of capacity and access to finance. At the Practitioner Labs for Policy Prototyping in Uganda, participants co-created three prototypes that serve as inputs to the Green Finance Strategy. The prototypes aim to accelerate green finance flows in the Ugandan economy in a way that benefits green finance suppliers (better financial returns) and clients (opportunities for green investments).
Four key factors are recurring in the solutions: i) Multi-stakeholder partnerships, ii) Tailored
green finance offerings, iii) Combination of non-financial support with financing, and iv)
Sensitisation and mass information sharing.