Africa-Press – Uganda. The Deputy Governor of the Bank of Uganda (BoU) Prof. Augustus Nuwagaba has underscored that Uganda’s long-term economic growth will depend on how effectively global leaders implement the Sevilla Commitment — a landmark agreement on sustainable financing adopted earlier this year.
Speaking about the outcomes of the 4th International Conference on Financing for Development, held in Seville, Spain, from June 30 to July 3, 2025, Nuwagaba highlighted that the commitment offers a realistic framework to address the persistent financial and debt challenges that hinder growth in developing economies.
The Seville conference brought together world leaders, development experts, and financial institutions, culminating in a historic consensus to close the global funding gap for the Sustainable Development Goals (SDGs).
According to the conference findings, developing nations require at least Shs 15,200 trillion (USD 4 trillion) annually to achieve their 2030 development targets.
“Debt sustainability remains one of the biggest obstacles to growth in developing economies. Innovations such as debt-for-development swaps and blended finance platforms can help redirect debt repayments toward projects that directly improve livelihoods,” Nuwagaba said.
He explained that debt-for-development swaps enable governments to convert part of their sovereign debt into investments in critical social sectors such as health, education, and climate resilience. Meanwhile, blended finance mechanisms combine public, private, and philanthropic capital to reduce investment risk and attract long-term funding into key development projects.
Nuwagaba further noted that the Sevilla Commitment introduces several innovative tools to ease global debt pressures, including a “Debt Pause Clause”, an expansion of multilateral development banks’ lending capacity, and measures to strengthen domestic revenue mobilization.
Nuwagaba emphasized that taxation will play a pivotal role in sustainable financing, referencing ongoing proposals for a global tax on financial transactions and carbon emissions to raise additional revenue for climate action and development initiatives.
“Financing sustainable development is not just a moral obligation — it is an economic necessity. We must reform the global financial system to ensure developing countries like Uganda can access affordable, long-term capital,” he said.
Nuwagaba also called on the private sector to play a central role in implementing the Sevilla framework, urging businesses to integrate Environmental, Social, and Governance (ESG) principles into their investment decisions. By doing so, he said, Uganda can unlock new opportunities for inclusive and sustainable growth.
“The private sector’s engagement is crucial. Integrating ESG principles is not only good for the planet but also a smart business strategy that aligns profit with purpose,” he said.
Nuwagaba argued that the success of the Sevilla Commitment will depend on strong governance, transparency, and collaboration among governments, civil society, and international development partners.
“The time for action is now. We must seize this opportunity to reform the financial system and mobilize resources for sustainable development. Together, we can build a more equitable global economy,” he said.
Adopted by 193 countries, the Sevilla Commitment is set to guide global financing and debt management reforms over the next decade. For Uganda, it presents a unique opportunity to ease debt pressure, attract new investment, and advance inclusive, sustainable economic growth.
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