aBi Finance and ASA Microfinance launch UGX 2 Billion SPROUT project to expand green finance in Northern and Eastern Uganda

18 August 2026, 5:40 pm

Byamukama Alozious

aBi Finance and ASA Microfinance Uganda have launched a two-year, more than UGX 2 billion project aimed at expanding access to green and inclusive finance for farmers, women entrepreneurs and agribusinesses in Northern and Eastern Uganda.

The Sustainable Pathways for Rural Outreach and Upward Transition into Nature-positive Growth (SPROUT) Project will focus on communities that remain underserved by formal financial services, while helping farmers and businesses invest in climate-smart activities and build resilience to climate change.

The project was launched in Ntinda-Kampala on Tuesday, August 18, 2026, with aBi Finance saying the initiative will help address some of the financial challenges limiting agricultural growth in the country.

Mona Muguma Ssebuliba, Chief Executive Officer of aBi Finance, said access to finance should go beyond simply giving people loans.

“Financial inclusion is about far more than opening accounts. It is about enabling people to invest, adapt to climate change, build sustainable businesses and improve their livelihoods,” Ssebuliba said.

Under SPROUT, aBi Finance and ASA Microfinance will work to bring financial services closer to communities in Northern and Eastern Uganda, where many farmers and small businesses continue to face difficulties accessing affordable and appropriate financing.

The project will support the establishment of 10 new ASA branches, introduce a USSD-based mobile banking platform and develop three agribusiness lending products designed to better respond to the needs of farmers and businesses.

The partners also aim to provide more than 10,000 green loans worth approximately UGX 10 billion.

The financing will support climate-smart investments such as solar-powered irrigation, improved seed varieties, efficient processing equipment and other sustainable farming practices.

Noah Owonugisha, Head of Impact and Sustainability at aBi Finance, said climate change is making it increasingly important for financial institutions to prepare both their staff and customers to understand and use green finance.

He said the partnership will also help financial institutions direct more financing towards agribusiness while helping businesses become better prepared to operate in changing climate and market conditions.

The project is particularly targeting women, who play a major role in Uganda’s agricultural economy but continue to face challenges accessing formal credit.

According to aBi Finance, 73 percent of loans deployed through its partners in 2025 went to women farmers and agribusinesses, while 39 percent reached borrowers in Northern and Eastern Uganda. The institution also reported that 23 percent of loans deployed through its partners were classified as green.

SPROUT aims to train 5,000 women-owned agribusinesses in financial management, responsible borrowing and green finance. At least 30 percent of those trained are expected to take up green loans.

The project will also train about 320 ASA Microfinance staff so they can better assess green investments and support customers using climate-responsive financial products.

Irene Maberi, Chief Executive Officer of ASA Microfinance Uganda, said many smallholder farmers and women entrepreneurs want to grow their businesses but often find that existing financing does not fit their business cycles.

“Every day, we see smallholder farmers and women entrepreneurs striving to grow their businesses. Yet often financing options don’t align with their realities, whether it’s the timing of returns, investments in equipment, or business cycles,” Maberi said.

She said SPROUT will help ASA understand these needs and improve its products so that financial services become more practical, responsible and accessible, including green finance.

The project will also expand ASA’s services in Northern and Eastern Uganda, reducing the distance customers have to travel to access financial services.

Its USSD platform will allow customers using basic mobile phones to access services without needing smartphones or reliable internet connectivity. The platform is expected to support at least 90,000 transactions.

The focus on Northern and Eastern Uganda comes as concerns remain about uneven development and limited access to financial services in some parts of the country.

The partners say government and the private sector cannot achieve Uganda’s agricultural transformation alone, making partnerships between financial institutions and development partners important in mobilising resources for farmers and businesses.

The project is expected to generate at least 6,000 new loans through the new branches, while about 2,500 women-owned agribusinesses are expected to graduate to larger loan facilities.

aBi Finance says the partnership builds on its wider goal of increasing financing for women farmers and agribusinesses while supporting climate adaptation, mitigation and biodiversity conservation.

The project is supported by the Embassy of Denmark, Impact Fund Denmark and the European Union and is expected to provide a model that can be expanded to other parts of Uganda. For Northern and Eastern Uganda, the partners say the goal is not only to increase the number of loans available, but to make finance more useful to farmers and businesses as they respond