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In 2023, Uganda Development Bank (UDB) reported significant growth in its loan portfolio, reaching 1.6 trillion Shillings, marking a notable 24% increase. The bank also witnessed a substantial surge in loan disbursements, soaring by 21% during the same period.
Within the year, UDB approved loans amounting to 691 billion Shillings, earmarked for diverse projects totaling to 201, as indicated in the bank’s unaudited performance statement for 2023.
UDB’s Managing Director, Patricia Ojangole, highlighted the bank’s robust performance, aligning with its consistent trend over recent years. She emphasized UDB’s pivotal role as Uganda’s Development Finance Institution.
Out of the approved applications, funds disbursed amounted to 610 billion Shillings, allocated to various projects nationwide.
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Regarding debt collection, the bank successfully retrieved 466.5 billion Shillings in loan repayments, which were then reinvested into funding disbursements for enterprises throughout the year.
The majority of funding, accounting for 59%, was directed towards the industry sector, encompassing agro-industry and manufacturing, demonstrating UDB’s commitment to supporting key sectors. Additionally, allocations were made towards primary agriculture activities and infrastructure development.
The approved projects are anticipated to generate approximately 18,558 job opportunities, alongside contributing significantly to additional output value, tax revenue, and foreign earnings for the government.
UDB remains dedicated to fostering development in underserved segments of the country, including SMEs, youth, and women, through tailored strategies and special programs.
During the reporting period, the bank allocated 22 billion Shillings to support 118 enterprises within these categories, with a total disbursement of 17 billion Shillings.
Furthermore, through its Private Equity and Venture Capital initiatives, UDB invested 9.9 billion Shillings and approved an additional 25.3 billion Shillings for innovative startups in various impactful sub-sectors.
The bank also prioritizes the survival and growth of small and medium enterprises (SMEs) beyond their initial stages, addressing challenges such as bookkeeping, governance, market access, and financial literacy through programs like the Business Accelerator for Successful Entrepreneurship (BASE).
Under this program, UDB provided business training to over 500 enterprises, with plans to incubate 291 for funding in 2024, particularly focusing on agriculture.
Moreover, the Bank’s Business Acceleration Program has supported 40 projects across agricultural sectors, SMEs, youth, and women, benefiting approximately 5,000 businesses through advisory services.
To facilitate access to finance for small enterprises, UDB partnered with local Fintech company Ensibuuko to digitize farmer groups, enabling over 700 beneficiaries to access digital microloans.
In commitment to environmental sustainability, UDB allocated 50 billion Shillings towards the Climate Finance Facility, aimed at financing green sectors and promoting financial inclusion.
As economic activities rebound from the COVID-19 pandemic, UDB endeavors to meet the rising demand for long-term credit, with both capitalization and funding from the government increasing significantly.
In its expansion efforts, UDB established its first regional office in Gulu City in 2023, with plans for additional offices in Mbale, Hoima, Arua, and Mbarara, to enhance its presence and support across Uganda.
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