The Uganda Development Bank (UDB) has reported significant year-on-year growth for 2024, showcasing robust performance across key metrics.
According to its financial report for 2024, the bank’s loan portfolio grew to Shs 1.67 trillion, a testament to UDB’s continued commitment to fostering Uganda’s socio-economic development.
The Bank’s total assets grew by 3%, from Shs 1.67 trillion to Shs 1.71 trillion, attributed to increased funding primarily from government capital allocations and other partners.
“This solid performance reflects our unwavering commitment to driving change and fostering a prosperous future for Uganda,” Joshua Allan Mwesiga, the Bank’s Director for Strategy and Corporate Affairs, revealed during a press conference held at Bwera School of Nursing and Midwifery.
This facility, which UDB funded, is vital for training future professionals in nursing, midwifery, and environmental health sciences.
“UDB is more than just a financial institution; it is a transformative force. We are devoted to empowering individuals and businesses across Uganda, stimulating socio-economic growth, and paving the way for a brighter future for our nation.”
Development Outcomes
In 2024, UDB approved 171 projects projected to create 17,832 jobs and generate profits of Shs 1.7 trillion and contribute Shs 455 billion in taxes (Corporation tax and PAYE).
The Bank made significant strides in supporting the operationalization of the National Development Programs approving Shs 454 Billion that contributed to the different NDPIII programs.
Notable contributions were made in promoting agro-industrialization, tourism development, manufacturing, human capital development (in health and education), private sector development, and regional development.
For the manufacturing sector, Shs 219.67 billion was allocated for 32 projects, while 25 projects in agro-industrialization received a total of Shs 88.31 billion.
Additionally, 52 projects were approved under Human Capital Development, 12 for integrated transport infrastructure and services, and 32 for tourism development.
The Bank approved Shs 455 billion for private sector development across various regions in the country, to stimulate rapid, private-sector-led growth, enhance shared prosperity and economic expansion, and serve as a driving force for socio-economic development.
Loan Disbursements
The Bank disbursed Shs 388 billion in 2024 to various projects. The Bank has over 770 active projects in 105 districts across the country.
Driving the Green Finance Agenda in Uganda
In 2024, the Bank approved 34 projects classified as green, marking a 13% increase from the 30 green projects approved in 2023. UDB continued to seek partnerships with strategic allies to enhance its resource pool for green financing initiatives.
Notably, the Bank participated in the UN Climate Conference (COP29) in Baku, Azerbaijan, where it received acclaim for its efforts in providing patient capital to private enterprises focused on low-carbon industrialization, green manufacturing, and climate-resilient infrastructure.
Specialized Interventions to Address Systemic Challenges
In 2024, the equity pipeline achieved a remarkable 130% growth, showcasing strong performance. UDB’s equity investments are primarily aimed at financing enterprises by acquiring shareholding.
The Bank recoups its investments through dividends, revenue sharing, share value appreciation, and other methods outlined in the investment agreements.
Supporting Science, Technology, and Innovation (STI)
UDB is partnering with the Science, Technology, and Innovation Secretariat to manage a Shs 6.2 billion Innovation Fund on behalf of the Government. This fund aims to support seven early-stage enterprises involved in medicine, cassava processing, and silkworm production.
Additionally, the Bank actively collaborates with key players in the STI domain to identify and fund innovative projects for commercialization and scalability.
Promoting Financial Inclusion
According to the statement, Bank has adopted a multi-faceted approach to enhance financial inclusion by providing credit to underserved borrowers at the grassroots level. By leveraging innovation, technology, community involvement, and partnerships, UDB effectively addresses underserved populations’ unique challenges, promoting economic participation and improving the quality of life for many Ugandans.
Financial Performance
The Bank’s unaudited financial results for the year ending December 31, 2024, demonstrated robust performance, with a profit after tax of Shs 55.13 billion.
Speaking at the event, Godfrey Kabbyanga, the state minister for National Guidance, thanked the management of the bank for steering the Bank towards achieving its objectives.
“Your hard work and dedication are commendable, and your unwavering commitment has fostered an environment of growth, innovation, and resilience. Acknowledging UDB’s role in our country’s broader development agenda is essential. In a rapidly changing economic landscape, where inflation, climate change, and global uncertainties abound, the Bank has continued to fulfill its mandate of providing financial solutions and fostering sustainable development,” Kabbyanga said.
