Uganda government has allocated an additional shs1 trillion into Uganda Development Bank this financial year, to bolster the bank’s ability to fund large-scale private sector projects.
Prime Minister Robinah Nabbanja announced the capital during a graduation ceremony for bank employees at the National Leadership Institute.
She said the investment is part of a broader strategy by President Yoweri Museveni to ensure the private sector has access to the “cheap and affordable money” necessary to drive industrialization and job creation.
“We recognize the need to further expand the bank’s loan portfolio and are committed to strengthening its liquidity capacity,” Nabbanja said. She noted that the 1 trillion shilling boost would allow the bank to better fulfill its mandate of supporting commercial agriculture, manufacturing, and tourism.
The new funding follows a period of significant growth for the state-owned lender. To date, the bank has disbursed 2.45 trillion shillings to 607 businesses. Nabbanja reported that these loans have helped generate 55,553 jobs and contributed 944.2 billion shillings in tax revenue.
Nabbanja emphasized that reducing the “cost of money” is as critical to the economy as lowering the costs of electricity and transport. By recapitalizing the bank, the government aims to keep interest rates low, which she described as a prerequisite for the country’s socioeconomic transformation.
The managing director of the bank, Patricia Ojangole, said the additional capital arrives as the institution refocuses its staff on national development goals. The recent training for employees was designed to ensure that the bank’s expansion is managed with a “patriotic lens” and a focus on service delivery.
In addition to the development bank, Nabbanja noted that the government continues to support other state-linked financial institutions, including the Uganda Development Corporation and Pearl Bank, to ensure a robust multiplier effecThe
UDB is the national Development Finance Institution (DFI) of Uganda, established in 1972 to promote and finance sustainable socio-economic development. It accelerates growth by investing in high-impact private sector projects in key sectors like agriculture, manufacturing, and tourism, aiming for job creation, tax contribution, and foreign exchange generation, aligned with the National Development Plan (NDP III)t across the economy.
