The government has approved additional capital for the Uganda Development Bank (UDB) as the bank reports that its financing activities contributed to the creation of at least 69,202 jobs during the last financial year.
The Minister of Finance, Planning and Economic Development, Henry Musasizi, said the government has authorised UDB to retain 3 billion shillings from the bank’s profit after tax for the 2024/2025 financial year and use it as additional capital to strengthen its lending capacity.
Musasizi made the remarks while presiding over the bank’s Annual General Meeting, where he commended UDB for expanding access to development financing for entrepreneurs across the country.
According to the minister, UDB disbursed 502.2 billion shillings to businesses in various sectors during the last financial year, financing projects aimed at expanding production, increasing value addition, and creating employment opportunities.
He noted that the bank’s continued support to entrepreneurs has played a significant role in stimulating economic activity and generating thousands of jobs for Ugandans.
Musasizi further revealed that UDB’s capital base is now approaching 2 trillion shillings, a milestone he said reflects the government’s commitment to strengthening the country’s development finance institution so it can support more investments in manufacturing, agriculture, tourism, infrastructure, and other productive sectors.
“We have authorised 63 Billion as an additional capital and also authorised the board to make it as retained payment, which is now called payment after tax,” Mr Musasizi said.
The additional capital injection is expected to enhance UDB’s ability to provide long-term financing to businesses that often struggle to access affordable credit from commercial banks.
UDB has in recent years positioned itself as a key vehicle for financing Uganda’s industrialisation and private-sector-led growth agenda, with the government increasingly relying on the bank to support enterprises that can create jobs, boost exports, and contribute to sustainable economic transformation.
