The Uganda Development Bank (UDB) has received a fresh capital injection of Shs 1 trillion in the FY 2025/26 national budget, as part of the government’s intensified push for industrialisation, job creation, and increased productivity.
Finance Minister Matia Kasaija, delivering the budget speech at Kololo Ceremonial Grounds, said the new funding brings the total capitalisation of UDB to Shs 1.5 trillion, underscoring its central role in Uganda’s economic transformation agenda.
“UDB has supported businesses in commercial agriculture, value addition, manufacturing, tourism, education, health, and construction. The additional funding will scale up this impact,” said Minister Kasaija.
As of December 2024, UDB had disbursed Shs 2.45 trillion to 607 businesses across strategic sectors. The bank’s interventions have so far created 55,553 jobs, generated Shs 20 trillion in output value, contributed Shs 944.2 billion in taxes, earned Uganda Shs 3.3 trillion in forex and supported businesses to earn Shs 3.15 trillion in profits.
The bank has also launched tailored programmes for SMEs, youth, and women-owned enterprises, including business incubation and development services. UDB is expanding its regional footprint, supporting enterprises in 96 districts across Uganda’s sub-regions.
Emyooga and MSME Support
In a related effort to grow grassroots incomes, the government has injected Shs 100 billion into the Emyooga Programme, bringing total investment to Shs 660 billion. Emyooga has already benefited 2.4 million Ugandans, creating 471,000 jobs in trades like carpentry, tailoring, beauty salons, and local manufacturing.
“Emyooga has kick-started new local economies, especially in urban and peri-urban areas,” said Kasaija, adding that beneficiaries will now receive certification under the new TVET Act, allowing them to operate as recognised professionals.
COVID-19 Recovery Fund Impact
The Small Business Recovery Fund (SBRF), established during the pandemic, has supported 3,496 MSMEs, helping to save over 26,000 jobs. Kasaija reaffirmed the government’s commitment to building economic resilience for small enterprises.
Overall Wealth Creation Funding
The Minister also announced Shs 2.43 trillion earmarked for wealth creation programmes in FY 2025/26, broken down as follows: Parish Development Model (PDM) – Shs 1.059 trillion; UDB – Shs 1.0 trillion; Emyooga – Shs 100 billion; Uganda Development Corporation (UDC) – Shs 187.1 billion; Agricultural Credit Facility – Shs 50 billion.
Others are: GROW (for women enterprises) – Shs 231.3 billion, INVITE (industrial empowerment) – Shs 275.1 billion, Presidential Zonal Hubs and youth skilling – Shs 58.5 billion and Microfinance Support – Shs 48.5 billion.
With these bold allocations, the government aims to monetise the economy, empower local enterprises, and drive inclusive growth across Uganda.