UDB gets Shs75b from Arab Bank to increase lending capacity

The Arab Bank for Economic Development in Africa (BADEA) has extended funding worth $20 Million (about Shs76 billion) to the Uganda Development Bank (UDB).

Under the agreement, $10 million (about Shs38b) will be used to finance eligible import transactions from the Arab countries and $10 million will be used to finance eligible private sector projects for the benefit of borrowers within Uganda.

Mrs. Patricia Ojangole, the Managing Director of UDB,

and Dr. Fahad Aldossari, the Chairman Board of Directors at the Arab Bank for Economic Development, signed the agreements while State minister for Finance (General Duties) Henry Musasizi witnessed the ceremony at Speke Resort Munyonyo on Wednesday, 05 October 2022.

“This new funding will go a long way in bridging financing gaps in the key economic and productive sectors particularly primary agriculture, agro-industry and manufacturing,”

 Ms Ojangole said.

Musasizi, who also opened BADEA Board of Directors meeting, commended the Arab Bank for its strong presence in Uganda and continued support to the development of various sectors of the government such as health, transport, energy and education.

Also signed was the unconditional grant of USD 500,000 for economic empowerment of rural households in Kalungu district to be implemented by Hikma community development initiative.

The Chairman Board of Directors at BADEA, Dr Fahad Aldossary, hailed the strong cooperation between Uganda and the bank.

Uganda Development Bank (UDB) is a Development Finance Institution (DFI) focused on accelerating socio-economic development through sustainable financial interventions in line with the country’s development priorities.

In line with the National Development plan (NDPIII), UDB continues to provide appropriate financial and non-financial solutions to SMEs and large-scale projects in priority sectors of the economy including primary agriculture, agro-industrialization, manufacturing, education, health, infrastructure, and tourism.

The financial solutions offered by the Bank include Tourism intervention fund, farmers group loans, terms loans asset finance, trade finance, project finance, equity investments and special programs solutions (SME Kazi Loans, Women Prosper Loans and Youth Step-up loans).

Additionally, UDB offers project preparation services to fill the gap of inadequate stock of bankable projects that are required to propel development. Relatedly, the Bank provides advisory services to entrepreneurs pertaining to management best practices, good governance, record keeping, and financial management.

This is done by way of training and technical support to develop and implement the required processes in the businesses to ensure sustainable growth of businesses.