By Charles Katabalwa
5th April 2023
At least three percent (3%) of Uganda’s Gross Domestic Product (GDP) which is equivalent to USD 900 million Approximately Sh3.7 trillion is lost due to climate change according to the government.
Ramathan Ggoobi, the Secretary to the Treasury and also the Permanent Secretary for the Finance Ministry says that losses are registered whenever floods and drought occur due to climate change.
He adds that these disasters affect food production, reduce soil fertility, increase pest invasion, and destroy grazing land which affects agro businesses and agriculture production which are the direct contributors of Uganda’s GDP.
Ggoobi further revealed that climate change is currently a big challenge responsible for food insecurity, threatening human settlement and collapsing of businesses among others and called upon all Ugandans to be vigilant on issues of mitigating climate change.
It is upon this background that the Uganda Development Bank (UDB) has launched a new project dubbed Climate Finance Facility (CFF) worth UGX50 billion to promote Green Economy and to mobilize capital from domestic and external sources for low-carbon and climate-resilient investments in the country.
The CFF is a strategic Fund that will make available affordable finance that aims to promote climate-smart agriculture and ensure climate-resilient infrastructure and low-carbon industries.
During the launch of this Climate Finance Facility at Mestil Hotel Nsambya in Makindye division on Wednesday, Ramathan Ggoobi, the Secretary to the Treasury applauded UDB for coming up with this strategy saying CFF is very strategic and timely as Uganda and the world at large, more than ever, commit to devise mechanisms to address the threat of climate change.
Patricia Ojangole, the Managing Director of UDB said that the vulnerability of Uganda’s population requires urgency in adopting and maintaining future economic growth opportunities by transitioning to a low carbon economy which is the reason behind the establishment of this Green Economy Project.
Target initiatives will include Climate Smart Agriculture and Agribusiness, Low carbon industry, Climate Resilient infrastructure, Eco-Tourism Clean energy and Sustainable waste management.
The beneficiaries will also be exposed to the Bank’s Green Investment Advisory as well as the Project Preparation Support to make them bankable but more importantly, grow them to become viable green businesses. Investments shall demonstrate compliance with environmental sustainability and climate action.
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