Uganda Development Bank (UDB) has launched a regional office in Mbale City to expand its footprint and improve access to development financing in eastern Uganda.
The new office, located on Masaba Road, will serve as a coordination and service centre for the Elgon, Teso, Bukedi, Busoga and Karamoja sub-regions.
UDB said the facility will strengthen its ability to respond to both financial and non-financial needs of businesses, with a focus on promoting financial inclusion and balanced economic growth.
Speaking at the launch, UDB managing director Dr Patricia Ojangole said the move reinforces the bank’s mandate as Uganda’s national development finance institution.
She said the presence in Mbale would help unlock investment opportunities in a region with strong economic potential.
Dr Ojangole pointed to opportunities in agriculture value chains, transport infrastructure such as rail, and tourism diversification as key areas for growth.
She added that the bank aims to support private sector projects that can deliver measurable socio-economic impact across agriculture, industry, services and infrastructure.
Mbale district chairperson Muhammad Mafabi described the new office as a milestone in efforts to drive socio-economic transformation in the region.
He noted that eastern Uganda remains heavily dependent on agriculture, with coffee as the main cash crop, but faces persistent challenges in value addition.
Mafabi said limited access to modern pulping and washing facilities has affected the quality of coffee, forcing many farmers to sell low-value or semi-processed produce.
He said the UDB office offers an opportunity for farmers and cooperatives to access affordable credit, improve production methods and strengthen business management skills.
Mafabi also urged manufacturers to take advantage of UDB’s long-term financing, which offers loan tenors of up to 15 years, to expand operations and invest in machinery.
He called on borrowers to use the funds responsibly and ensure timely repayment to allow more businesses to benefit.
UDB previously operated from three offices in Kampala, Gulu and Hoima. The Mbale branch is part of a wider expansion plan that includes new regional offices in Arua and Mbarara.
The bank reported strong growth in 2025, with total assets rising by 24 per cent to Shs2.28 trillion from Shs1.75 trillion in 2024.
This growth was supported by Shs 438 billion in new funding from credit lines and government capital injections.
During the year, UDB approved 120 projects expected to create more than 33,600 jobs, mainly for young people.
The projects are also projected to generate Shs5.2 trillion in output, Shs 2.76 trillion in profits, about Shs 918.7 billion in corporate tax, and Shs 2.79 trillion in foreign exchange earnings.
