Uganda Development Bank (UDB), the national development finance institution, has pledged to enhance its interventions with the allocation of UGX 85 billion from the 2023/24 national budget. This funding will specifically target medium and large enterprises.
Currently, UDB’s capitalization from the government stands at UGX 1.22 trillion, and it is expected to increase further with the additional allocation in the upcoming financial year.
Patricia Ojangole, Managing Director of UDB, highlights that Uganda is experiencing a steady recovery and demonstrating positive progress in various macroeconomic indicators. As the country’s development finance institution mandated to drive socio-economic development, UDB is committed to expanding its interventions aimed at improving the quality of life for Ugandans. This includes building a sustainable agri-food system, promoting sustainable industrialization, and developing a sustainable services sector.
In the previous budget of 2022/23, UDB received an allocation of Shs 103 billion, which, combined with resources from funding partners, enabled significant support to private enterprises. This resulted in a 52% increase in the gross loan portfolio, reaching Shs 1,298 billion by December 2022, compared to Shs 851 billion in December 2021.
UDB’s disbursements amounted to UGX 776.6 billion in 2022, contributing to the bank’s robust growth. Additionally, the bank recorded an unaudited post-tax profit of Shs 45 billion, surpassing the previous year’s figure of Shs 38.83 billion.
Ojangole highlights that UDB’s total assets currently stand at UGX 1.58 trillion, marking a 19% growth since the beginning of 2022. This growth is largely attributed to increased funding from government capital allocations and credit lines from funding partners, enabling the bank to provide credit. As of April 2023, the bank’s gross loan portfolio stands at Shs 1.384 trillion.
The investments made in 2022 generated an output value of Shs 3,358 billion, compared to Shs 2,445 billion in 2021.
Ojangole expresses appreciation to the government for its unwavering support in capitalizing UDB, noting that the bank’s continuous growth is fueled by government funding and credit facilities from various funding partners.
