The newly elected executive of the Uganda Bankers Association (UBA) has announced that they will prioritize Environmental, Social, and Governance (ESG) matters to enhance the banking sector's responsibility towards society, its customers, and other stakeholders.
This strategic direction was confirmed by Julius Kakeeto, the newly elected UBA Chairman, during an interview following his election at the association’s Annual General Meeting (AGM) held on May 17 in Kampala.
"We are living in an era where business sustainability is a priority," Kakeeto stated emphatically.
Kakeeto, who also serves as the Chief Executive Officer of PostBank Uganda, emphasized that the focus on ESG is not merely a trend but a critical component of the financial sector's future. His leadership marks a significant shift towards integrating sustainability into the core functions of Uganda's banking institutions.
Kakeeto’s election comes at a time when global and local pressures are mounting for businesses to adopt more sustainable and socially responsible practices. The concept of ESG encompasses a broad range of issues including environmental protection, social equity, and governance practices that ensure ethical management and compliance with the law.
By prioritizing these areas, the UBA aims to foster a more resilient and inclusive banking environment.
Under Kakeeto’s leadership, the UBA plans to implement policies that will guide member banks in adopting ESG principles. This includes encouraging green financing initiatives, promoting financial inclusion, and ensuring robust governance frameworks.
The move is expected to not only enhance the reputation of Uganda's banking sector but also attract investment from global entities that are increasingly prioritizing ESG criteria in their One of the primary areas of focus will be environmental sustainability.
The UBA under Kakeeto's leadership will encourage banks to finance projects that contribute to environmental conservation. This includes renewable energy projects, sustainable agriculture, and other green initiatives. The goal is to reduce the carbon footprint of the banking sector and support Uganda’s broader environmental goals.
On the social front, the UBA aims to enhance financial inclusion and support community development. This includes extending banking services to underserved populations and investing in community-based projects that improve livelihoods.
Financial literacy programs will also be a key component, helping individuals and businesses make informed financial decisions.
Good governance will form the bedrock of the new executive's strategy. The UBA will advocate for transparency, accountability, and ethical behavior within its member banks. By strengthening governance practices, the association aims to build trust with stakeholders and ensure compliance with both local and international regulatory standards.
Kakeeto’s vision has received widespread support from the banking community in Uganda. Members of the UBA have expressed their commitment to the new strategy, recognizing that sustainable practices are essential for long-term success.
The AGM in Kampala saw robust discussions on how banks can integrate ESG principles into their operations and the potential benefits this could bring.
The shift towards sustainability is seen as a way to future-proof the sector against various risks, including regulatory changes and market pressures. It also aligns Uganda’s banking sector with global trends, where ESG considerations are becoming increasingly important for investors and consumers alike.
As the UBA embarks on this new chapter, the focus on ESG is expected to bring about significant positive changes in the banking sector. By embedding sustainability into their core operations, Ugandan banks can contribute to a more sustainable economy and society.
Julius Kakeeto’s leadership promises a forward-thinking approach that not only addresses current challenges but also positions the banking sector for future growth and resilience. The commitment to ESG principles underscores a broader recognition that the financial sector plays a crucial role in driving sustainable development.
The Uganda Bankers Association’s renewed focus on sustainability under its new executive leadership marks a pivotal moment for the industry. By embracing ESG principles, the UBA is set to enhance the sector’s contribution to societal well-being and environmental stewardship, paving the way for a more sustainable future.
