Prime
Climate change could wipe out $3.2b worth of GDP
Mr Noah Owomugisha, the aBi Finance head of investments, speaks during a financial institutions training in Ntungamo District early this week. Photo / Courtesy
What you need to know:
- The frequency of rising temperatures has increased, thereby reducing the availability of water for people, crops and animals
Climate change effects could wipe off a significant percentage of Uganda’s Gross Domestic Product (GDP) if government does not implement several adaptation measures, experts have warned.
Mr Henry Ssegawa, a financial expert with Uganda Institute of Banking and Financial Services, said during the green finance capacity building training for financial institutions in Ntungamo Municipality that the frequency of rising temperatures had increased, thereby reducing the availability of water for people, crops and animals, not only in Uganda but across East African.
This, he said, undermines agricultural production, which contributes greatly to Uganda’s economy.
Quoting data from the Climate Change Department of the Ministry of Water, Mr Ssegawa said Uganda’s climate change annual costs could be in the range of $3.2b to $5.9b by 2025, with the biggest impact being on water, energy, agriculture and infrastructure.
“That’s a great loss that we want to avert through products that do climate change mitigation and climate change adaptation,” he said.
The financial institutions, which include banks and microfinance institutions, were being trained on how to assess businesses and projects that promote green financing and renewable energy for possible funding.
The training is being conducted by aBi Finance, and Uganda Institute of Banking and Financial Services.
Mr Noah Owomugisha, the aBi head of investments – green growth and business development services, said equipping financial institutions with the necessary knowledge on green finance is needed to deal with climate challenges.
“We are trying to build capacities of financial institutions to offer green finance to agribusinesses and smallholder farmers. If we continue to invest the old way, then time is going to come when our soils are no longer productive and when can longer get enough harvest to support our households. Green financing enables you to do that,” he said.
