By Agency
Uganda Development Bank (UDB) registered and maintained an additional 51,841 jobs in the economy through various funded projects in 2023.
According to the annual performance results just released, UDBL, the government’s development financial institution, this was supported by the growth of 24 percent in its net loan and advances to 1.47 trillion shillings.
A total of 610 billion shillings was disbursed in loans out of the total loan applications worth 692.8 billion which were approved during the year, a trend attributed to growth in support to the private sector activities.
The statements show that the bank made 49.8 billion in net profit after tax, compared to 42.6 billion shillings registered in 2022, while total assets grew 10 percent to 1.67 trillion in 2023.
Some 467 billion it collected from its borrowers was reinvested, adding to the 97.3 billion shillings received from the Government as additional capital contributions, and an additional 120.5 billion in drawdowns from various lines of credit held with its funding partners.
“Our focus on key priority sectors underpins our mission to deliver high socio-economic value and support Uganda’s long-term development goals,” said Patricia Ojangole, the Managing Director.
She noted that the Bank’s approved funding of 692 billion shillings in new loans was meant for more than 200 enterprises in 63 districts nationwide, and this should add more jobs.
“These projects, upon full implementation, are expected to create 18,558 new jobs and generate an output value of 11.4 trillion shillings, from which 616 billion will be generated as tax revenue to the Government, and 3.34 trillion in foreign exchange earnings.”
The Bank also implemented various institutional initiatives to expand its support to various vital sectors and address systemic growth constraints in the economy, including access to clean water where 27 billion shillings was injected through a multi-stakeholder partnership.
This funding was meat to enhance water supply and improve water infrastructure, especially in scarcity-prone areas, with up to 774 kilometers in new water mains extension was realized and 27,307 new water connections done. The performance report shows that 1,619 new public standpipes were constructed to cater for 858 villages across the country.
The Bank also spent 8.1 billion shillings towards electricity access project through the Hybrid Electricity Customer Connection Credit Framework, facilitating 38,833 new connections to the electricity grid nationwide.
Funds totaling 150 billion for local content support were allocates for Ugandan contractors participating in infrastructure projects, to help boost their competitive capacity.
The statement adds that the Bank continued to focus on expanding its support to the Youth, Women, and SME segments, with an additional allocation of 21.2 billion shillings and disbursement of an additional 13 billion to support various enterprises across the country.
To enhance business resilience and formalization, through its Business Accelerator for Successful Entrepreneurship (BASE), the Bank provided business development and coaching programs to 450 enterprises nationwide, of which 291 were identified to undergo business incubation in 2024.
The program also supported 24 farmer groups, consisting of 444 households and 330 women-led enterprises. This support is aimed at empowering and fostering the growth of these businesses.
The Bank began operationalizing its regional representative offices, with the opening of the Gulu office, while by mid next year, branches will be opened in Mbale, Hoima, Mbarara, and Arua, as it bids to take services to the undeserved rural entrepreneurs.
Finance Minister Matia Kasaija pledged to add more funding to UDB to continue with its support to development activities. “In 2024 and beyond, the focus will be on mobilizing adequate resources to enable UDB to continue to deliver its mandate,” he said, adding, “The Bank will also undertake the implementation aiming to accelerate productivity, import replacement, and export promotion.”
