The Uganda Development Bank (UDB) has continued to exhibit exceptional performance each time that passes by. This was witnessed during the release of the 2023 performance report that that saw an 8% growth in assets from UGX1.52 trillion in 2022 to UGX1.64 trillion last year.
According to the UDB Managing Director Patricia Ojangole said At least UGX466.5 billion was collected in loan repayments and reinvested to fund disbursements to various enterprises during the year.
The Bank approved funding amounting to UGX691 billion to support 201 projects spread across the country.
“Consistent with UDB’s strategy to support the key sectors of the economy, the bulk of this approved funding, i.e. 59%, targeted the industry sector (agro-industrialization and manufacturing) with UGX409 billion approved to this sector alone. A sum of UGX19 billion was allocated to fund primary agriculture activities while UGX223 billion was approved to boost the infrastructure sector.” She revealed. Adding that when it comes to actual funds disbursed to projects, 2023 saw a total of UGX610 billion disbursed to various projects across the country. The highest amounts of funds were disbursed to the primary agriculture, agro-processing and manufacturing sectors.
UDB has continued to make significant strides towards facilitating Uganda’s socio-economic development. On this front, 18,558 jobs are expected to be created through the approved projects on top of generating UGX 11.39 trillion in additional output value, UGX 615.96 billion in tax revenue to the Government and UGX 3.3 trillion foreign revenue earnings.
To enhance development in the underserved segments of the country to include the SMEs, Youth and Women, the Bank continues to effectively implement several strategies dubbed special programs, specifically tailor-made to support their development.
During the reporting period, the Bank approved UGX22 billion to support 118 enterprises in this segment and disbursed an additional UGX17 billion to these segments.
Following its first deployment of Private Equity and Venture capital in December 2022, UDB invested another UGX9.9 billion (with an additional UGX25.3 billion approved) to innovative startups with high impact in sub-sectors like vaccine manufacture, electric-mobility, local paint manufacture, leather value addition, and eco-friendly building materials.
The Bank has to-date committed UGX5.066 billion towards the preparation of various projects and targeted funding initiatives,” Ms. Ojangole explained.
As the country continues to recover from the devastating effects of COVID-19 and other constraints, there has been a surge in economic activity culminating in the rising demand for long-term credit to catalyze investments in the country. The demand, as has been the trend recently, outstrips the resources available to the Bank.
“I am happy to report that both capitalization and funding towards the Bank grew, meaning we were enabled by the government to realize our strategic goals. The Bank’s funds inched up year-on-year by 12 percent, from UGX1.23 trillion to UGX1.38 trillion attributed to capital Injections by the government during the period and retained and reinvested profits from the prior years, with these sources complemented by additional funding from funding partners. We continue to explore all options to improve our funding base to reach more enterprises thereby expanding the impact our impact,” said Ms. Ojangole.
In 2023, the Bank rolled out several new initiatives aimed at propelling and facilitating equitable growth and working towards achieving a market-driven economy. These included a special purpose vehicle with a unique and specific focus on financing, unlocking, and catalyzing private sector investment in local green sectors that drive green impact and financial inclusion.
The Bank also launched a digital solution that offers both a savings and lending option for small-holder farmers in Uganda, and targeted financial and non-financial support to improve the competitiveness of emerging and existing Ugandan contractors.
In a bid to expand its footprint across the country, UDB set up the first regional office in Gulu City in 2023, to act as a liaison point for all the districts that constitute Northern Uganda.
To further improve efficiency and deepen financial inclusion across the country, the Bank is establishing five regional offices. These offices will be strategically located in various districts of the country, which include Mbale for Eastern Uganda, Hoima for the mid-west region, Arua for West Nile, Mbarara for
Western Uganda as well as the Gulu office, which is already operational.
In 2024 In 2024, the Bank is poised to solidify the gains achieved and remains committed to advancing its ambition of supporting private sector enterprises addressing crucial societal needs. The objective is to amplify our impact in enhancing the quality of life for the people of Uganda.
