The French Development Agency (AFD) has signed a €40 million (about Shs 170 billion) financing agreement with the Uganda Development Bank (UDB) to support priority sectors of the economy.
The funding package includes an additional €800,000 (about Shs3.38 billion) in technical assistance.
The agreement was signed on Monday at UDB Tower in Kampala by Marc Trouyet, AFD’s country director, and Dr Patricia Ojangole, the managing director of UDB. The ceremony was witnessed by France’s ambassador to Uganda, Virginie Leroy.
Dr. Ojangole said the funding will strengthen UDB’s ability to catalyse sustainable and inclusive economic growth while expanding access to long-term development finance.
“We are deeply grateful to our partner, AFD, for their trust, collaboration, and shared vision,” she said. “This funding will help address Uganda’s environmental and social challenges in a structured and measurable manner, including improving access to finance for traditionally underserved and excluded populations, particularly youth and women.”
She added that the support will promote social inclusion, expand economic participation, and contribute to reducing structural inequalities in the economy.
The partnership aligns with Uganda’s National Development Plan IV, which prioritises expanding access to economic resources and strengthening enterprise growth and competitiveness.
The financing comes as UDB enters the second year of implementing its new corporate strategy. Under the strategy, the bank is expanding its role beyond lending to the private sector. It is taking on a stronger mandate in structuring transactions, providing advisory services and crowding in development finance from local and international partners.
“For us as a development finance institution, access to concessional and strategic funding is not merely about liquidity. It is about leverage. Leveraging the funds mobilised into measurable economic impact,” Dr. Ojangole said.
She said the credit line will increase UDB’s capacity to finance transformative projects that create jobs, deepen industrialisation, support small and medium enterprises, advance infrastructure, and drive inclusive and sustainable growth.
Ambassador Leroy said the partnership reflects France’s continued support for Uganda’s economic transformation agenda.
“This partnership embodies the support the French government is providing to Uganda to develop its economy and successfully implement the Tenfold Growth Strategy, particularly in the ATMS sectors. France supports Uganda’s ambition to become a middle-income country by harnessing the full potential of its agriculture and agribusiness,” she said.
The ambassador also announced that a business forum will be held during the Africa Forward Summit in Nairobi on May 11 and 12 under the joint invitation of Presidents Emmanuel Macron and William Ruto.
She said the forum will focus on agriculture, green industrialisation, energy, logistics, the digital economy, and health, and will address reform of the international financial system and responses to macroeconomic imbalances.
Trouyet said AFD is confident that the partnership will generate tangible social, economic, and climate impacts.
“AFD is partnering with UDB with the confidence that this will deliver the impacts we are both seeking as public development banks. Social impacts through increased financial inclusion by targeting women and youth-led businesses. Economic impacts of strengthening agricultural actors such as SACCOs and agribusinesses. Climate impacts by promoting climate-smart agriculture and investing in climate-resilient infrastructure,” he said.
