Advancing Sustainable WASH Finance: A New Era of Collaboration in Uganda

Kampala, Uganda – On June 17th, 2025, the Ministry of Water and Environment (MWE) and the Uganda Bankers' Association (UBA) spearheaded a groundbreaking dialogue to address one of Uganda's most critical challenges: achieving Sustainable Development Goal 6 (SDG 6) for clean water and sanitation. The event, titled "Advancing Sustainable WASH Finance," brought together leaders from Uganda's financial and water sectors to chart a new course for sustainable financing.

Bridging the Funding Gap

Uganda faces a significant annual funding gap of approximately US$206 million for water supply and US$32.2 million for sanitation and hygiene. The country's population growth, which is not being met by a corresponding expansion of WASH facilities, exacerbates this issue. Currently, only 19% of the population has access to safely managed water and 18% to safely managed sanitation. During the dialogue, Dr. Callist Tindimugaya, Commissioner for Water Resources Planning at the MWE, highlighted the urgent need for innovative financing solutions. He noted that the estimated cost to bridge the existing gap over the next decade is over UGX 30 trillion, which requires a tripling of the current annual sector funding. The MWE has committed to prioritizing partnerships with banking institutions and leveraging instruments like blue and green funds to meet these targets.

The Role of ESG in Sustainable Finance

The dialogue focused on leveraging the recently launched Environmental, Social, and Governance (ESG) Framework to integrate sustainable financing into commercial banking practices. Ronald Ocheng, Senior Research Officer and Coordinator of the ESG Framework Implementation at the UBA, presented key findings, noting that while governance structures in member banks are strong, the area of sustainable financing remains a significant challenge. This collaboration with the water sector aims to provide the technical expertise needed to close this gap.

Ms. Patricia Amito, Head of Communications at the UBA, emphasized the banking sector's readiness to engage, stating, "A Sustainable Financing Framework for WASH in Uganda could be achieved by combining the partners' technical guidance with the financial expertise of the banking association."

Key Outcomes and a Way Forward

The discussions led to several actionable steps and key outcomes, highlighting a shared commitment to a formal partnership. These included:

• Formalizing Collaboration: The MWE and UBA intend to formalize their partnership through a Memorandum of Understanding (MOU).
• Breaking Down the Challenge: The UGX 30 trillion funding need will be broken down into tangible, bankable projects to make it more accessible for financial institutions.
• Adapting Lending Rules: There is a need to adapt lending rules to better support small and medium-sized WASH businesses.
• Developing Measurement Guidelines: New guidelines will be created to measure the success of WASH projects, allowing banks to track their investments' impact.
• Capacity Building: A central resource center will be established to provide information and ESG education for financial institutions and WASH sector players.

The dialogue concluded with a sense of optimism and a clear path forward. By combining the MWE's technical expertise with the financial power of the banking sector, Uganda is poised to make significant strides toward ensuring that every citizen has access to safe and sustainable water and sanitation services.
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