The Uganda Development Bank (UDB) witnessed a significant surge in its outstanding loan portfolio to Ugandan enterprises, reaching Shs 1.6 trillion in 2023, marking a 24% increase. The year saw a 21% rise in total loan disbursements, with an impressive Shs 691 billion approved for lending to 201 various projects, as per the bank’s unaudited performance statement for the same period.
Out of the approved applications, Shs 610 billion was disbursed to diverse projects nationwide, while debt collection efforts resulted in recovering Shs 466.5 billion, reinvested to fund additional disbursements throughout the year.
Industry, encompassing agro-industry and manufacturing, claimed the lion’s share of the funding, amounting to 59% or Shs 409 billion, aligning with the bank’s strategy to bolster key sectors. Primary agriculture activities secured Shs 19 billion, and Shs 223 billion was earmarked for infrastructure development.
Anticipated outcomes from the approved projects include the creation of 18,558 jobs, Shs 11.39 trillion in additional output value, Shs 615.96 billion in tax revenue for the government, and Shs 3.3 trillion in foreign revenue earnings.
To address developmental gaps in underserved segments such as SMEs, youth, and women, the bank implemented tailored strategies, including special programs. During the reporting period, Shs 22 billion was approved to support 118 enterprises in the SMEs, women, and youth category, with Shs 17 billion disbursed. The bank also invested Shs 9.9 billion through its first private equity and venture capital initiative in December 2022, approving an additional Shs 25.3 billion for impactful startups in sub-sectors like vaccine manufacturing, electric mobility, local paint production, leather value addition, and eco-friendly building materials.
Acknowledging challenges faced by small enterprises, UDB focused on initiatives like the Business Accelerator for Successful Entrepreneurship (BASE) program, offering business training to over 500 enterprises in 2023. Under this program, 40 projects across various sectors received support, representing about 5,000 businesses benefiting from advisory services to catalyze growth.
In efforts to enhance financial inclusion, the bank partnered with Ensibuuko, a local fintech, to digitize over 112 farmer groups, enabling more than 700 beneficiaries to access digital microloans ranging from half a million to Shs 3.5 million. The bank allocated Shs 50 billion towards the capitalization of the Climate Finance Facility, focusing on green sectors and financial inclusion.
UDB’s expansion plan includes the establishment of regional offices, starting with Gulu City in 2023, serving as a liaison point for northern Uganda districts, followed by offices in Mbale, Hoima, Arua, and Mbarara to further extend its presence across the country.
