Uganda Development Bank (UDB) has reinforced its role as a pillar of national transformation, driving economic growth through strategic financing and sustainable investments. The Bank’s 2024 performance highlights underscore the importance of development finance in bridging critical economic gaps, fostering industrialization, and promoting inclusive development.
UDB’s 2024 performance exemplifies the critical role of development finance institutions (DFIs) in driving economic transformation. The bank’s financing model is structured to support long-term national development, strategic sectoral growth, and inclusive economic participation.
The Bank’s focus on industrialization, infrastructure development, and human capital investment aligns with Uganda’s Vision 2040, which aims to transition the country into a competitive and self-sustaining economy. By increasing green financing, SME lending, and sectoral investments, UDB is actively reducing dependency on external funding while enhancing domestic economic resilience.
Furthermore, UDB’s financial interventions have demonstrated that development finance is not just about providing loans—it is a catalyst for structural transformation. By addressing capital constraints in priority sectors, UDB is fostering job creation, technological advancement, and economic diversification, setting Uganda on a sustainable growth trajectory.
Financial Strength and Strategic Loan Disbursement
The Bank reported a net profit of UGX 55.13 billion in 2024, a testament to sound financial management and operational efficiency. With UGX 388 billion disbursed across 171 projects in 67 districts, UDB’s reach extends deep into the country, fueling economic activities across multiple sectors.
Of the UGX 454 billion allocated for development finance, 85.5% was successfully disbursed in loans. This underscores the efficiency of UDB in channeling resources to productive sectors, ensuring that financing gaps do not hinder economic growth.
Growth in Assets and Loan Portfolio
UDB’s financial position strengthened further in 2024, with total assets growing to UGX 1.71 trillion (3% increase) and its loan portfolio expanding to UGX 1.67 trillion (4% growth). These figures highlight the Bank’s increasing financial capacity to support national development initiatives.
Empowering SMEs, Youth, and Women Entrepreneurs
UDB expanded its loan portfolio for SMEs, youth, and women entrepreneurs by 39%, increasing from UGX 33.05 billion to UGX 49.5 billion in 2024. By channeling more resources to these groups, UDB is fostering grassroots entrepreneurship, enhancing financial inclusion, and supporting wealth creation at the community level.
Advancing Sustainable and Green Finance
UDB approved 34 environmentally sustainable projects, marking a 13% increase from 2023. This growth in green financing demonstrates the Bank’s commitment to supporting Uganda’s transition toward climate-resilient and eco-friendly economic activities. As global economies shift towards sustainability, UDB’s initiatives align with international best practices in environmental finance, ensuring long-term economic stability.
Development Finance and Its Impact on Economic Transformation
The projects financed by UDB are projected to generate 17,832 jobs in 2025, a direct contribution to reducing unemployment and fostering productivity. The expected UGX 455 billion tax contribution from these initiatives enhances domestic revenue generation, ensuring financial sustainability for national projects. Furthermore, the UGX 1.78 trillion in foreign exchange earnings from UDB-backed projects strengthens Uganda’s trade balance and economic resilience.
The manufacturing sector remains the leading job creator, expected to generate 6,344 new jobs, while the education sector will create 365 jobs, contributing UGX 1.5 billion in taxes.
Sectoral Investments: Catalyzing National Growth
To accelerate economic transformation, UDB directed substantial resources to key growth sectors:
- Manufacturing: UGX 219.7 billion allocated to 32 projects
- Agro-industrialization: UGX 88.31 billion invested in strengthening agricultural value chains
- Human Capital Development: 52 projects approved to enhance skills and productivity
- Transport Infrastructure: 12 projects financed to improve connectivity
- Tourism: 32 projects supported to boost the sector’s contribution to GDP
UDB’s 2024 performance affirms its pivotal role in Uganda’s economic transformation, demonstrating how development finance can serve as a powerful tool for national growth. As Uganda positions itself as a regional investment hub, UDB remains at the forefront of mobilizing resources for industrialization, employment creation, and long-term economic resilience. The Bank’s continued strategic investments are set to drive Uganda towards an era of self-sustained development, ensuring prosperity for future generation
