1. Uganda’s experience with the UNDP
Biodiversity Finance Initiative (BIOFIN):
Manage for better results when
mainstreaming biodiversity
Angella Rwabutomize Matsiko
Ministry of Finance, Planning and Economic Development
OECD: Biodiversity and Development Workshop
Paris, France
18th February 2015

2. A. Facts about Biodiversity in Uganda: Tourism sector
B. Bionfin approach in Uganda
C. Other Biodiversity funding mechanisms
D. Mainstreaming process
E. Challenges in mainstreaming
F. Opportunities
Outline of the presentation

3. A. Facts about Biodiversity in Uganda

4. A. Facts about Biodiversity in Uganda
 Uganda (241,000 Sq km: over 36 million people) is a natural
resource based economy that highly depends on biodiversity based
sectors like agriculture, tourism, forestry and water resources.
 Biodiversity plays a key role in national development by providing
material for various sectors of the economy.
 As a result, the above sectors remarkably contribute in terms of
employment, food security, total GDP, foreign exchange, security
and poverty alleviation.

5. Tourism contribution
Total contribution of travel and tourism to GDP:
UGX 5,495 billion ($ 2.11 m: 7.9% of GDP) in 2013 from UGX 4,994
billion in 2012 ($1.92m)

6. Uganda’s path to development Vs
Biodiversity conservation…

7. This is a fairly new concept that requires building of a business case
for increased investment in the management of ecosystems and
biodiversity: Resources towards this initiative to date: US$ 468,000
 Uganda is in the inception phase and currently a consultant is
being procured to help in understanding the concept
 However, Uganda has had to make initial steps/entry point into
adopting the approach:Take stock of where we have come from;
where we are; where we want to go; the challenges and
opportunities
BIOFIN in Uganda

8.  Review existing biodiversity policies, institutional set up and
capacity and the expenditures to date
o Policy and drivers of biodiversity and ecosystem changes: identify
policies and practices that lead to biodiversity loss (Policy on Oil
and Gas that is not explicit on conservation of biodiversity; Bush
burning)
o Institutions and overlapping mandates (NEMA and Ministry of
Water and Environment: who is the implementor)
o Public and private expenditure needed disaggregated over a
specified period of time: Government funding and the private
sector funding
Entry point for BIOFIN in Uganda…

9.  Development/review of the National Biodiversity Strategy and Action
Plan (2015 – 2025)
The 3rd NBSAP revision process involved:
o Identification of relevant biodiversity institutions
o Formulation of 4 Thematic areas to look at Policy, legislature and institutional
framework; Aquatic and terrestrial biodiversity; Biotechnology and Biosafety;
and Biodiversity and National Development
o Thematic Working Groups (TWGs) formed
o Consultants were hired to collate the information from the TWGs
Entry point for BIOFIN in Uganda…

10. Entry point for BIOFIN in Uganda…
Defining the costs of
implementing National
Biodiversity Strategies and
Action Plan
o Biodiversity Strategies, Actions
and Costs: The cost of
implementing the NBSAP is
estimated at USD 119,320,000.
o Overall costs, projected
expenditures and finance gaps
o Uganda has developed Guidelines
and an action plan for financing
biodiversity conservation
(September 2014)
 Developing a strategy to mobilise
resources for biodiversity finance:
scheduled for this year 2015
o Potential finance actors, mechanisms,
revenue and feasibility: Funds allocated
and/or proposed by government, donors
and trusts will represent a core source of
funding for the Action Plan.
Explore other innovative financing
mechanisms
o Integrated and operational resource
mobilization plan
 Initiate implementation of the Resource
Mobilisation Strategy:
Received funding for this 4th component
from the US$176,336 from the Government
of Germany

11. B. Other Biodiversity Funding
Mechanisms
Traditional Financing
Mechanisms
o Financial disbursements to
the Central Government
Departments and Agencies
o Budget support allocations
from donors
o Trust funds
 Innovative financing mechanisms
o Payments for ecosystem services,
o Biodiversity offsets (how do we
compensate for any residual significant,
adverse impacts that cannot be avoided,
minimized and/or rehabilitated or
restored: for example developers of large
infrastructure projects like hydro electric
power, oil and gas to use these offsets)
o Environmental fiscal reforms
(taxation/subsidies: on pollution or
harmful emissions like cement),
o Green markets (like ecotourism) through
natural resource trade and value chains,
o Climate finance
o Global Environment Facility (GEF) and
other donor-funded programmes

12. Within the national
context: This has been
mainstreamed into the
2nd NDP mainly on
ecosystem restoration –
wetlands and forests:
Cabinet recently passed a
resolution to cancel all
titles in wetlands
Growth in infrastructure
projects like Hydropower, oil
and gas, mining, transport
and works have
mainstreamed biodiversity
concerns.
Potential impacts of road
construction like loss of
trees, should be followed
with planned and costed
mitigation measures like
planting trees, grassing
Biodivesity issues have
been integrated into
the EIA processes
spearheaded by
National Environment
Management
Authority
Energy being an emerging sector in
terms of oil and gas exploration has
included aspects of biodiversity.
MoFPED, OPM, MWE and NEMA have
developed a checklist for mainstreaming
environment into the Budget Framework
papers and this is used for funding a
project and M&E and appraisal
D. Mainstreaming process…

13.  Poverty continues to bite thus encroachment on biodiversity
Population increase (1 woman = 7.2 children)
Limited/inadequate financing for implementation of mitigation
aspects
Lack of data/information to guide proper decision making
Political will Vs the demands of voters
Physical Infrastructure Vs natural resource infrastructure is high on
Uganda’s development agenda (physical infrastructure budget not
marched with resources for mitigation)
Weak institutional collaboration
E. Challenges in mainstreaming…

14. Value addition to biodiversity products
Improved market access for biodiversity products
Employment opportunities
Use of biodiversity resources to alleviate poverty
Valuation of biodiversity and ecosystem services and their linkage
to national development
Policy, legal and institutional framework in places
Funding of REDD-plus and the development of the REDD strategy
in place
F. Opportunities

15. ASANTE SANA
THANK YOU
MERCI