Gov’t targets Shs1.86 trillion in inaugural sovereign green bond next year

What the report says

Uganda’s government is preparing to launch its first sovereign green bond early next year, with a target of up to $500 million, or about Shs1.865 trillion, according to The Independent Uganda. The planned issue is intended to raise money for climate-related projects and help address a major shortfall in climate financing. Dennis Muggaga, who heads the Climate Finance Unit at the Ministry of Finance, said the framework for the bond is being finalised and could be ready by the end of this month, setting up investor roadshows before issuance.

The bond would work like a Treasury bond, but the proceeds would be reserved for projects with environmental benefits such as clean energy, climate-resilient farming, flood-resistant infrastructure and water systems. The ministry is also considering a mix of shilling- and dollar-denominated tranches to attract both domestic and foreign investors. The article says the European Union is supporting the process through its Global Green Bond Initiative, including technical help and a subsidy meant to lower borrowing costs.

Officials and experts cited in the report said Uganda will need a strong pipeline of eligible projects and clear reporting standards to reassure investors. Muggaga said several projects have already been vetted, while the Global Green Growth Institute’s Lamin Trawally stressed the need for credible readiness across sectors including energy, roads, water, environment and land.

The move comes as Uganda seeks to close a wide gap between climate funding needs and the money it has mobilised so far. More broadly, green bonds are being used in several African countries to finance climate adaptation and low-carbon development, though the continent still receives only a small share of global sustainable bond issuance.