29 SEPTEMBER 2021 | KAMPALA
Opportunity Bank Limited in partnership with the Uganda Green Enterprise Finance Accelerator (UGEFA) takes a major step in expanding their green finance portfolio during the official partnership launch on Monday, 29th September 2021 at the Serena Hotel from 07:30 – 09:30AM EAT.
As a UGEFA Partner Bank, Opportunity Bank will benefit from privileged access to the UGEFA pipeline of 200+ finance-ready, green businesses graduating from the 6-month finance-focused UGEFA Catalyser programme for business development. Opportunity Bank, alongside other UGEFA Partner Banks, will deliver 6.1 million USD in debt financing by 2023 to green SMEs across sectors.
The African Development Bank (AfDB) estimates that Africa’s financial requirements to adapt to climate change range from $20–$30 billion per year until 2030, but they can be met through diversification of both finance mechanisms and funding sources (Mindy Hauman and Tallat Hussain, 2018). For the African continent to recuperate post Covid -19, a green framework, in which green finance mechanisms are employed, is key. In addition to the government improving regulatory and policy environment to attract the private sector to climate smart programmes, green financing initiatives will help African countries to tap into an investor base that understands the value of green assets, including of small- and medium-sized enterprises.
This partnership between Opportunity Bank and UGEFA affirms the role of banking institutions in supporting green enterprises in Uganda. The partnership will boost green financing in the domestic green SME ecosystem.
“The partnership with UGEFA is aligned with our purpose to make lives of people and communities better, and foster the sustainable development goals on poverty and climate action. Uganda, as a result of the COVID 19, is dealing with the largest economic disruption in history. Businesses have been devastated because they are unable to meet their financial obligations. The program is designed to give businesses relief during this period, and will support climate smart businesses to thrive amidst these hard-economic times,” John Robert Okware, Chief Relations Officer, Opportunity Bank.
"UGEFA is proud to partner with Opportunity Bank to provide Green loans to green SMEs across Uganda. The African Development Bank notes an annual funding gap of USD 27 billion for Climate finance. Our partnership with Opportunity bank is a step in bridging the funding needs of the climate smart SMEs in Uganda," - Eddie Sembatya, Programme Lead, UGEFA.
The Uganda Enterprise Finance Accelerator (UGEFA) is funded fully by the European Union Delegation to Uganda. UGEFA is implemented by Finding XY, a Ugandan-based non-profit, innovation centre and business advisory firm; and adelphi Research gGmbH, a leading global independent think and do tank on environment and development.