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What Ugandans Need to Know About Green Financing

As of March 2025, they are drafting a policy to guide banks on financing projects.

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As Uganda faces the impacts of climate change such as floods, droughts, and deforestation, green financing is emerging as a powerful tool for building a sustainable future. For everyday Ugandans, from farmers in Lamwo to business owners in Kampala, understanding green financing could mean access to new opportunities, improved livelihoods, and a healthier environment. Here’s what you need to know about this growing movement and how it is taking shape in Uganda.

Green financing refers to directing funds toward projects that protect the environment and combat climate change. This includes loans, investments, or funds for initiatives like solar power plants, energy-efficient buildings, and tree-planting projects. It is not just charity; it’s a way to make money work for both profit and the planet. In Uganda, this could involve financing cleaner cooking solutions or sustainable farming practices instead of activities like charcoal burning that harm forests.

The Bank of Uganda (BoU) is taking action. As of March 2025, they are drafting a policy to guide banks on financing projects. The main goal is to support eco-friendly ventures while making it more difficult for harmful ones to receive funding. For example, if you plan to borrow money to start a charcoal business, expect higher loan costs or stricter conditions. Why? Charcoal production contributes to deforestation and carbon emissions, exacerbating Uganda’s environmental crisis. Instead, the BoU aims for banks to back projects like renewable energy or agroforestry, consider solar panels for rural homes or coffee farms that also serve as carbon sinks.

This initiative is not entirely new. In 2024, the BoU collaborated with the Uganda Bankers Association to launch an ESG Framework which is short for Environmental, Social, and Governance. This framework serves as a roadmap for banks to prioritize sustainability, aligning with Uganda’s objectives for responsible growth. Green financing is a crucial aspect of this strategy.

For Ugandans, green financing is more than just policy, it has practical implications. If you are a farmer, it could provide access to cheaper loans for drip irrigation systems that conserve water. If you run a small business, energy-efficient upgrades could lower your utility bills and qualify you for better funding. Even households stand to benefit, imagine a green mortgage that rewards you for building a home with solar panels or good insulation.

Beyond individual benefits, the broader picture is crucial. Uganda is losing its forests rapidly being over 2% each year which contributes to climate instability. Green financing aims to reverse this trend, creating jobs in clean industries while improving air and water quality for everyone. Experts globally estimate that we need trillions of dollars to address climate change, and Uganda is part of that movement.

The BoU’s efforts may attract global investors. Countries like the UK are investing billions into green funds aimed at supporting Uganda, helping us build resilience against climate shocks. This presents an opportunity to leapfrog to cleaner technology, bypassing the dirty energy path that others have followed.

The transition to green financing will not be without challenges. Some concerns revolve around “greenwashing” where projects are marketed as environmentally friendly but fail to deliver real benefits. For instance, a solar company might promise significant savings but end up installing faulty panels, wasting money and eroding trust. Additionally, not every bank or business is prepared; some may resist change if it means short-term losses. For rural Ugandans, accessing these funds could be challenging if banks do not reach them or if the application process becomes overly complex.

There is also the issue of balance. Making charcoal loans more expensive could adversely impact small producers, especially those with limited alternatives. The BoU will need to pair this effort with support, such as training or funding for cleaner options, to avoid leaving vulnerable populations behind.

Green financing is part of a global shift known as ESG, which began decades ago when investors started avoiding harmful industries like tobacco. By the 2000s, it evolved into a system for assessing businesses based on their environmental impact, treatment of employees, and ethical leadership. Uganda is now catching up as climate pressures increase and global investments shift toward sustainability.

Keep an eye on the BoU’s policy, which is still in development as of March 2025. Inquire at your local bank about green loans or incentives for sustainable projects. If you are a community leader, advocate for awareness so rural areas are not overlooked. And if you are a student or entrepreneur, consider exploring green initiatives for there is a growing demand for innovators who can blend profit with purpose.

Green financing is not a magic solution, but it offers Uganda a chance to grow smarter. It is about investing in a future where the Rwenzori glaciers don’t vanish and where Lake Kyoga thrives.

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What Ugandan Artists on Bandcamp Need to Know

The US has introduced new tariffs following the expiration of the de minimis exemption, which previously allowed duty-free imports for shipments under $800

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As a Ugandan artist on Bandcamp, you may have received a recent email regarding new US tariffs impacting global shipping. Announced on August 28, 2025, these changes affect the shipment of physical merchandise from Uganda to the United States, an important market for independent artists. This guide explains what the tariffs mean for you, how they may impact your sales, and steps you can take to continue reaching US fans.

The US has introduced new tariffs following the expiration of the de minimis exemption, which previously allowed duty-free imports for shipments under $800. This shift means many physical goods shipped from Uganda to the US now face import duties. Additionally, the uncertainty around these tariffs has led many global mail carriers to suspend deliveries to the US, creating challenges even for tariff-exempt items. Here’s how this affects you:

  • Tariffs Hit Physical Merch, Not Digital Sales
    Apparel and other goods like shirts, hoodies, hats, and totes are now subject to tariffs, which could increase costs for your US buyers. Digital sales; your MP3s, FLAC files, or streaming revenue are unaffected, offering a safe haven for part of your income.
  • Exemption for Music and Media
    Good news: “informational media” like vinyl records, CDs, cassettes, books, and sheet music are exempt from these tariffs. However, many international carriers are halting all shipments to the US, even for exempt items, due to the tariff confusion.
  • Shipping Disruptions
    With global carriers suspending US deliveries, even exempt items such as vinyl or CDs may not reach American fans at this time. These disruptions could delay orders, impact customer satisfaction, and affect your sales if not addressed proactively.

The US is a vital market for Ugandan artists on Bandcamp, where fans frequently purchase physical releases and merchandise. These tariffs and shipping suspensions may disrupt this important connection.

  • Higher Costs for Fans
    US buyers may face unexpected import duties on non-exempt items like apparel, making your merch less affordable. If you choose to cover these costs (via Delivered Duty Paid shipping), your profit margins could shrink.
  • Limited Local Options
    Uganda’s manufacturing scene for high-quality vinyl or custom apparel is limited, meaning many artists rely on international suppliers or direct exports. Tariffs and shipping issues complicate this, potentially raising costs or delaying production.
  • Fan Trust at Risk
    Unexpected fees or undelivered orders may cause confusion or dissatisfaction among US fans. Clear communication is essential to maintain audience loyalty, particularly in genres where Ugandan artists have established strong followings.

Bandcamp and industry insights offer several ways for Ugandan artists to navigate these changes:

  1. Pause US Merch Sales (If Needed)
    Bandcamp now lets you disable US shipping for physical goods from specific origins. Head to Edit Profile > Physical Goods > Shipping from in your account to temporarily pause sales. This can prevent headaches from undeliverable orders or unexpected fees while carriers sort out their US routes.
  1. Focus on Exempt Items
    Prioritize selling tariff-exempt products like vinyl, CDs, or cassettes. Double-check with your postal carrier (e.g., Uganda Post or couriers like DHL) to see if they’re still shipping these to the US. Use accurate HS Codes on labels to ensure customs recognizes the exemption.
  2. Talk to Your Fans
    Use Bandcamp’s Community messaging feature to update US buyers about potential delays or tariff costs. Explain that these are government-imposed fees, not your doing, to keep fans supportive. A quick message can go a long way in preserving trust.
  3. Consider Delivered Duty Paid (DDP) Shipping
    For non-exempt items like apparel, DDP shipping lets you prepay tariffs and include them in the price, giving US fans cost certainty. This requires upfront calculations and may cut into profits, so weigh the pros and cons.
  4. Lean into Digital Sales
    Digital releases are tariff-free and immune to shipping woes. Promote your albums, singles, or virtual events to US fans to maintain revenue. For inspiration, look at how Ugandan artists like those on The Ugandan Rite use digital releases to reach global audiences.
  5. Stay Updated
    Check Bandcamp’s Help Center (https://get.bandcamp.help) for the latest on tariffs and shipping. Reach out to your postal carrier for updates on when US deliveries might resume. If you’re dealing with complex orders, consider consulting a trade expert for advice.

These tariffs and shipping disruptions could challenge Ugandan artists’ ability to reach US fans, a critical audience for Bandcamp sales. While digital sales offer a workaround, physical merch like vinyl or apparel is a big part of many artists’ income and cultural impact. In the long term, you might consider exploring regional markets in East Africa or pursuing digital collaborations to diversify your revenue, although these may not match the scale of the US market.

The new US tariffs are a hurdle, but Ugandan artists are no strangers to creativity and adaptability. By focusing on exempt items, pausing US shipping when needed, and keeping fans in the loop, you can minimize disruptions. Lean on Bandcamp’s tools and community to stay connected with your audience, and keep an eye on the Help Center for updates. Your music and merch are worth it; keep shining!

For more details, visit https://get.bandcamp.help or contact Bandcamp support.

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Uganda’s Kitgum-Kidepo Road Upgrade

Following the reintegration of the Uganda National Roads Authority (UNRA) into the MoWT in 2024, the ministry has taken full responsibility for delivering this vital project.

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In a landmark decision, Uganda’s Parliament has authorized the government to secure a loan of €110.5 million (approximately Shs 450 billion) from Standard Chartered Bank. This funding will go towards upgrading the 115.8-kilometer Kitgum-Kidepo Road, a crucial infrastructure project that will connect the Kitgum and Kaabong districts in northern Uganda. The project aims to enhance tourism, improve regional connectivity, and address the socioeconomic challenges faced by the impoverished Karamoja subregion.

The Kitgum-Kidepo Road Project, led by the Ministry of Works and Transport (MoWT), involves rehabilitating an existing gravel road that extends from Kitgum town to the outskirts of Kidepo Valley National Park. Following the reintegration of the Uganda National Roads Authority (UNRA) into the MoWT in 2024, the ministry has taken full responsibility for delivering this vital project. The upgrade will transform the current Class C1 gravel road, which suffers from potholes, ruts, and poor drainage, into a high-quality, paved road. The project also includes widening the carriageway, improving drainage systems, and constructing two bridges to ensure year-round accessibility.

The road’s strategic location makes it crucial for unlocking agricultural productivity in Kitgum and Karenga districts, facilitating trade with South Sudan and Kenya, and promoting tourism by improving access to Kidepo Valley National Park, one of Uganda’s premier wildlife destinations.

On April 30, 2024, during a plenary session presided over by Speaker Anita Among, Hon. Henry Musasizi, the Minister of State for Finance, advocated for the loan’s approval. He emphasized the road’s importance in addressing the Karamoja subregion’s low road density, only 5.9 kilometers of paved roads per 1,000 square kilometers, and its potential to drive economic growth. “This road is critical for tourism and regional development,” he stated, pointing out that poor infrastructure has hindered Uganda’s ability to fully realize its tourism potential.

Despite broad support for the loan, the approval process faced scrutiny. Legislators, including the Leader of the Opposition, Hon. Joel Senyonyi, raised concerns about skipping a report from the House Committee on National Economy and the lack of transparency regarding the loan’s terms, such as interest rates and repayment schedules. Senyonyi warned about the risks of approving loans without thorough vetting, citing past problematic agreements. A motion by Government Chief Whip Hon. Denis Hamson Obua to waive the committee report requirement ultimately prevailed, reflecting Parliament’s commitment to addressing infrastructure deficits. The government has pledged that the loan will align with Uganda’s fiscal sustainability goals, with further details available through the Ministry of Finance.

An Environmental and Social Impact Assessment (ESIA) conducted in June 2024 ensures compliance with national and international standards, including the IFC’s Performance Standards and Equator Principles IV. The project will traverse open woodlands and semi-arid vegetation, avoiding critical habitats but will result in the loss of 14.4 hectares of natural habitat in the Nyangea-Napore Forest Reserve. Mitigation measures will address vegetation clearance, waste management, and dust emissions. The project will impact 59 culturally significant shea butter trees, which are valued for their spiritual, medicinal, and economic importance, as well as archaeological sites, including Iron Age pottery. Mitigation strategies include documentation, selective rerouting where feasible, and community consultations to preserve cultural heritage.

Socioeconomically, the project will benefit 158,549 individuals across the Kitgum and Karenga districts by improving access to markets, schools, and health facilities. Extensive stakeholder engagement, including focus groups with women, youth, and community leaders, has helped shape the project’s design. A grievance redress mechanism will ensure ongoing community feedback and conflict resolution. Challenges such as involuntary resettlement and gender-based violence will be mitigated through cash compensation, livelihood restoration initiatives, and community sensitization, with special attention given to vulnerable groups.

The upgraded Kitgum-Kidepo Road is poised to deliver transformative benefits, including:

  • Tourism Boost: Improved access to Kidepo Valley National Park is expected to increase visitor numbers, supporting Uganda’s Vision 2040 goal of promoting tourism and potentially boosting regional tourism revenue.
  • Economic Growth: Enhanced connectivity will facilitate domestic and cross-border trade, unlocking agricultural potential and creating hundreds of local jobs during construction, with further economic impact assessments underway.
  • Social Impact: Year-round, safe passage will improve access to education, healthcare, and markets while reducing travel times. The upgrade will introduce speed bumps, signage, and pedestrian crossings to address current safety gaps, such as the low helmet usage (17%) among bodaboda cyclists and inadequate road markings.
  • Environmental Benefits: A sealed road will reduce dust emissions, improving air quality and public health.

While the project holds immense promise, it faces challenges, including managing construction-related disruptions and ensuring equitable benefits. Mitigation measures include dust suppression, community sensitization on road safety, and adherence to a Resettlement Action Plan to support affected individuals. The road’s climate-resilient design, featuring elevated embankments, stormwater management, and a Climate Risk Monitoring Framework, will mitigate flood risks in a region with bimodal rainfall. The Ministry of Works and Transport (MoWT) will implement a robust monitoring framework to track environmental, social, and economic outcomes, with regular community feedback to ensure accountability.

The approval of the Kitgum-Kidepo Road upgrade marks a pivotal moment for Uganda’s northeastern region. By addressing infrastructure deficiencies, the project aligns with national development goals and sets the stage for economic and social transformation. As implementation progresses, stakeholders must ensure transparent execution and robust mitigation to maximize benefits for communities, businesses, and tourists. A map of the road’s route is available through the MoWT’s project documentation.

This historic investment in Uganda’s infrastructure underscores the government’s dedication to fostering inclusive growth and unlocking the potential of one of its most underserved regions. The Kitgum-Kidepo Road is not just a pathway; it is a gateway to a brighter future.

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Uganda Tourism Board Intensifies Crackdown on Unlicensed Accommodation Facilities

Starting May 6, 2025, UTB teams are revisiting these facilities to confirm adherence to licensing standards.

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UTB

The Uganda Tourism Board (UTB) has heightened its efforts to enforce compliance with licensing requirements for tourist accommodation facilities. Inspections resumed today across the Kampala Metropolitan Area following a six-month grace period granted to facility owners after an initial announcement on November 18, 2024. This warning indicated potential closures for unlicensed operations. Non-compliant facilities now face immediate closure, demonstrating UTB’s commitment to elevating standards within Uganda’s tourism sector.

This latest phase of enforcement follows inspections conducted in late 2024, during which UTB, in collaboration with the Uganda Police, targeted unlicensed accommodation facilities across Kampala’s 19 policing divisions, including Kawempe, Kamwokya, Rubaga, Wandegeya, Nansana, and the Central Business District. At that time, fewer than 200 of Uganda’s estimated 4,000 accommodation facilities held licenses. Consequently, UTB issued compliance notices and allowed owners time to fulfill the requirements outlined in the Uganda Tourism Act of 2008.

Starting May 6, 2025, UTB teams are revisiting these facilities to confirm adherence to licensing standards. “Non-compliant facilities will be closed,” UTB declared in a public notice, emphasizing that quality service at hotels, lodges, guesthouses, and other accommodations directly affects the experiences of tourists visiting Uganda. The board’s actions reaffirm its mission to ensure world-class standards under the “Explore Uganda – The Pearl of Africa” brand.

The Uganda Tourism Act mandates that all tourist accommodation facilities, ranging from hotels and serviced apartments to hostels and tented camps, obtain a valid tourism operating license. To qualify, owners must submit the following documents: Certificate of Incorporation, TIN Registration Certificate, Valid Operating Certificates, Approved Building Plan or Occupation Permit.

Registration is facilitated through UTB’s Quality Assurance System, and payments are processed via the Uganda Revenue Authority. The registration and inspection fee is 100,000 Ugandan Shillings, with an annual licensing fee of 200,000 Shillings, though these fees are currently under review.

The enforcement campaign has encountered challenges. In November 2024, some hotel owners criticized UTB’s approach, citing a lack of adequate prior consultation and awareness. Some critics, argued that the crackdown could negatively impact the sector and urged UTB to focus on awareness rather than punitive measures. In response, UTB spokesperson Gesa John Simplicious defended the initiative, stating that extensive stakeholder engagement had taken place and that enforcing standards is a legal obligation. The extent of non-compliance—over 95% of facilities were unlicensed in 2024, highlights gaps in awareness and instances of deliberate non-compliance. To address this, UTB has combined enforcement efforts with sensitization campaigns, offering a 48-hour grace period for unlicensed but compliant facilities to apply for licenses, and a 24-hour period for non-compliant facilities to relocate guests to licensed alternatives.

Tourism serves as a cornerstone of Uganda’s economy, significantly contributing to foreign exchange earnings. Poor service standards at unlicensed facilities could tarnish the country’s global reputation, making UTB’s crackdown a vital step toward sustainable growth. The initiative aligns with broader efforts, including hotel grading, classification, and partnerships with global brands like Emirates Airline and Absa Bank Uganda for events such as the KH3-Hills Marathon.

By enforcing licensing, UTB aims to create a conducive environment for stakeholders while ensuring tourists enjoy safe, hygienic, and high-quality accommodations. This phased enforcement, beginning in Kampala and set to expand nationwide, reflects a strategic approach to overcoming logistical challenges posed by the scale of the sector.

UTB urges accommodation owners to take immediate action to avoid closure: Register promptly through the UTB Quality Assurance System, Submit all required documentation, Ensure facilities meet minimum standards for safety, hygiene, and structural integrity, Seek assistance at +256-414-342-196/7 or qualityassurance@utb.go.ug.

As UTB continues its inspections, the tourism sector is at a pivotal juncture. The board’s commitment to enhancing hospitality standards is evident, but its success will depend on striking a balance between enforcement and stakeholder cooperation. For now, facility owners are on notice: comply or face closure.

For more information, visit www.utb.go.ug or www.qasystem.utb.go.ug. Uganda’s tourism industry is poised for transformation, and UTB’s actions signal a bold step toward a brighter, more competitive future.

Contact: Uganda Tourism Board, +256-414-342-196/7, qualityassurance@utb.go.ug

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