- all financial institutions operating in Uganda mandated to align their operations with sustainability
- beginning of an era in which financial resources are mobilized and deployed with a very clear purpose of bringing happiness
- The SSCI model shows that the financial sector must evolve to offer better solutions
Development Finance stakeholders are calling for the quick adoption of the Finance 4.0 as a revolutionary tool in mobilization and deployment of funds to radically accelerate national development in countries and financial institutions.
This they say will close the funding gaps and transform finance into a force for good.
Their remarks were made during the World Development Finance Forum, held in Kampala under the theme, “financing the Post-Coronavirus Era,” organized by the Ministry of Finance and the Uganda Development Bank (UDB)
Representing President Yoweri Museveni, Finance minister Matia Kasaija, in his statement, noted that all financial institutions operating in Uganda are mandated to align their operations with sustainability to also make sure profits are not made at the cost of livelihoods of Ugandans.
While launching the forum, Kasaija said that there should be innovative solutions to address global challenges.
Recently 200 countries gathered in Glasgow, Scotland for the COP26 summit, where they were urged to finance the zero-carbon target that requires hundreds of billions of dollars to transform economies to achieve the goal of 1.5 degrees Celsius.
According to Kasaija, fighting poverty, creating decent jobs, developing infrastructure and other national goals coupled with climate smart practices is a huge mountain to climb that can only be achieved through Financing 4.0
While unveiling Finance 4.0 ,Arshad Rab , Chairman, International Council of sustainability standards for value-driven financial institutions, said that the model was a state-of-the-art 21st century solution for mobilizing and deploying capital on a massive scale for achieving high social, environmental and economic returns for making the 4th industrial revolution work for all.
“It is the beginning of an era in which financial resources are mobilised and deployed with a very clear purpose of bringing happiness, delivering and opening the path to prosperity for all the people and doing so in a way that our natural environment remains intact.”Rab said.
Tom Hoyem, Ex-Cabinet Minister, Kingdom of Denmark and member of the city council of Karlsruhe, Germany and Board Member EOSD, International Council of sustainability standards for value-driven financial institutions, said that mobilizing funds and most importantly how they will be used is important adding that they aim to share sustainability among financial institutions and how they are impacting the world.
Executive Chair, National Planning Authority Pamela Mbabazi, noted that purposeful mobilization and deployment of capital is what is needed to ensure sustainable financing in Africa especially now in the post pandemic era.
“We also need to be mindful of exploiting our resources sustainably. There is need for planning to clearly articulate the development purpose that is needed to create the necessary impetus for domestic capital mobilization which should form the backbone for our development finance.”Mbabazi said.
Thabo Thamane, Chairman of the World Federation of Development Finance Institutions (WFDFI) remarked that there was need to accelerate efforts and ideas that will guarantee economies to achieve sustainable development and finding solutions and developing mechanisms for such.
Uganda Development Bank (UDB) Managing Director, Patricia Ojangole, revealed that UDB, was admitted to the sustainability standards and value-driven certification for financial institutions and the process was still continuing adding that Uganda Development Bank had received an award for exceptional leadership under the Sustainability Standards. Certification Initiative (SSCI), through creating social, economic, and environmental values.
Over 400 delegates from 45 nations have for the past two days been exploring new approaches and solutions including collective actions to mobilize capital to finance the transition to a zero-carbon inclusive and sustainable economy, hosted for the second time in Uganda.
In his closing remarks, the Deputy governor Bank of Uganda, Dr. Michael Ating-Ego noted that sustainability is best utilized by balancing the different values of the financial sector rather than focusing on one. “The SSCI model shows that the financial sector must evolve to offer better solutions” he added.