Equity Bank, UGEFA renew green finance partnership

September 18, 2025 in Business, Companies, Finance, Land & Agriculture, Trade & Industry by Editor

Equity Bank Uganda and the Uganda Green Enterprise Finance Accelerator (UGEFA) have renewed their partnership to expand financing for businesses developing climate-friendly solutions.

The collaboration, now in its second phase, builds on work that saw more than 100 small and medium-sized enterprises (SMEs) access credit in the first round. Supported by the European Union and implemented by German development organisation adelphi, UGEFA combines advisory support with tailored loan products provided through banks such as Equity.

The programme targets SMEs in sectors including renewable energy, green manufacturing, sustainable tourism, waste management, and e-mobility. At a launch ceremony in Kampala, the partners also announced a fresh call for applications from enterprises seeking both business development assistance and financing.

Christine Meyer, UGEFA’s project lead, said the next phase is designed to reach more companies. “We are building on a foundation that has proven SMEs can be both commercially viable and environmentally impactful,” she said.

Catherine Psomgen, Equity Bank’s Director of Public Sector and Social Investment, outlined the bank’s role in the initiative. She noted that in Phase I, Equity financed 85 businesses with loans worth over UGX 27 billion. The investments went into enterprises working in renewable energy, sustainable agriculture, waste management and related sectors.

“Phase II presents even greater opportunities. With more than 300 enterprises in the pipeline, new financial facilitation mechanisms, and technical assistance, we see a real chance to scale up green lending while addressing challenges such as collateral gaps, cash flow constraints, and access to long-term capital,” Psomgen said.

The EU delegation in Uganda described the programme as an example of how financial institutions can help bridge gaps in green finance, while Equity framed it as part of a broader effort to grow its green loan book and strengthen its position in sustainable finance.

Applications for the second intake are open on the UGEFA platform, with selected enterprises expected to benefit from both advisory services and access to credit.