Uganda Development Bank (UDB) has reported substantial year-on-year growth for 2024, demonstrating strong performance across key metrics, characterised by healthy asset quality and increased development impact nationwide.
Financial Growth and Performance
The Bank’s loan portfolio experienced significant expansion, reaching UGX 1.67 trillion, reinforcing UDB’s commitment to fostering Uganda’s socio-economic development. Total assets grew by 3%, rising from UGX 1.67 trillion to UGX 1.71 trillion, driven by increased funding primarily from government capital allocations and strategic partnerships.
Joshua Allan Mwesiga, UDB’s Director for Strategy and Corporate Affairs, highlighted this achievement during a press conference at Bwera School of Nursing and Midwifery, a facility funded by UDB.
He stated, “This solid performance reflects our unwavering commitment to driving change and fostering a prosperous future for Uganda. UDB is more than just a financial institution; it is a transformative force dedicated to empowering individuals and businesses, stimulating socio-economic growth, and paving the way for a brighter future.”
Development Impact and Sectoral Contributions
UDB approved 171 projects in 2024, projected to create 17,832 jobs, generate UGX 1,778 billion in profits, and contribute UGX 455 billion in taxes (Corporation tax and PAYE), alongside UGX 1,808.53 billion in foreign exchange earnings.
The Bank played a crucial role in supporting National Development Programmes, approving UGX 454 billion for various NDPIII initiatives. Notable contributions were made to agro-industrialisation, tourism, manufacturing, human capital development (health and education), private sector growth, and regional development.
For manufacturing, UGX 219.67 billion was allocated across 32 projects; 25 projects received UGX 88.31 billion under agro-industrialisation; 52 projects were supported under human capital development; 12 projects received funding under integrated transport infrastructure & services while 32 projects were financed under tourism development.
Private Sector Growth and Loan Disbursement
To stimulate private-sector-led economic expansion, UDB approved UGX 455 billion for private-sector development across Uganda.
Under Primary Agriculture, 45 projects received loan approvals, making it the most funded sector while under manufacturing, 32 projects were approved.
The Bank disbursed UGX 388 billion in 2024 to various projects, with over 770 active projects spanning 105 districts.
Promoting Investment Readiness and Financial Inclusion
UDB strengthened business sustainability by offering training, incubation programmes, business advisory services, and technical support established an incubation centre in partnership with the Uganda Management Institute to train businesses on formalization and operations, incubated 71 businesses, with 60 graduating with certifications and conducted nationwide entrepreneurship programs supporting cooperatives and SMEs.
By leveraging innovation, technology, and strategic partnerships, UDB expanded financial inclusion, ensuring underserved borrowers gain access to credit. Notably, the loan portfolio for SMEs, youth, and women grew by 39%, from UGX 33.05 billion in December 2023 to UGX 49.50 billion by December 2024.
Advancing Green Finance Initiatives
In 2024, UDB approved 34 green projects, a 13% increase from 2023. The Bank actively pursued partnerships to enhance its green financing resource pool and participated in COP29 in Baku, Azerbaijan, where it was recognized for its commitment to low-carbon industrialization, green manufacturing, and climate-resilient infrastructure.
Financing Startups and Private Equity
UDB’s equity pipeline grew by 130%, showcasing strong performance in financing enterprises through shareholding investments.
Supporting Science, Technology, and Innovation (STI)
The Bank partnered with the Science, Technology, and Innovation Secretariat to manage a UGX 6.2 billion Innovation Fund, supporting seven early-stage enterprises in medicine, cassava processing, and silkworm production.
Leadership and Community Impact
Mwesiga emphasised the Bank’s unwavering commitment to economic development, stating, “The substantial financial growth demonstrates our resilience and highlights strategic initiatives that enhance economic stability and propel national development goals.”
Hon. Godfrey Kabbyanga, State Minister for National Guidance, commended UDB’s impact: “In a rapidly evolving economic landscape, UDB continues to fulfil its mandate by providing financial solutions and fostering sustainable development. Your interventions in health and education bridge skill gaps and drive national growth.”
Dr. Francis Mulekya Bwambale, Director of Bwera School of Nursing and Midwifery, acknowledged UDB’s vital support: “UDB’s funding enabled us to construct and equip key facilities, significantly improving healthcare education and employment in Uganda.”