Study on Uganda’s Climate Change Adaptation Ecosystem Diagnostic Analysis

01/04/202221/04/2022

FSD Uganda

The most pressing agricultural risks in Uganda are directly related to climate change (CC): droughts, floods, crop/ livestock pest diseases, post harvest loss, hailstorms and thunderstorms, and other natural risks such as landslides

The lack of ownership and control over land and resources, and their disproportionate burden of unpaid care work, restricts access to finance, extension services and technological innovation to Ugandan women. They predominantly prefer VSLAs to formal financial institutions for savings and credit. Enhancing opportunities for women constitutes an efficient strategy for climate adaptation

The bulk of the climate change adaptation funding to Uganda is funded via bilaterals 87 with only 8 via multilaterals, and 4 via climate change funds. This suggests an unmet opportunity for Uganda to access a larger proportion of international climate finance through climate funds

- Lack of knowledge of the ecosystem across different actors and how to apply for funds were commonly cited as reasons that explain the gap

So far, the commercial financial sector has had a limited scope in enhancing climate change adaptation due to persistent challenges that also explain the lack of financial inclusion:

- The majority of farmers depend on rainfed agriculture with minimal use of irrigation. Most have poor access to information, high risk, low bankability and are located in areas that are not well connected areas,
  poor access to information, high risk, low bankability
- Farmers rely heavily on local materials with minimum use of external inputs (improved seed, inorganic fertilizers and agrochemicals) to improve crop production.
- There is a lack of awareness and knowledge of CC risks and information both for farmers and commercial sector end.