Government tasks UDB to drive Uganda’s $500 billion economy target

KAMPALA — Finance Minister Henry Musasizi has urged the Uganda Development Bank (UDB) to scale up financing for productive sectors to help the country achieve its target of growing the economy to $500 billion by 2040.

Mr Musasizi made the remarks on Tuesday during a meeting with UDB’s Board of Directors and management at the Ministry of Finance headquarters. The meeting was also attended by State Minister for Planning Amos Lugoloobi and State Minister for Privatisation and Investment Evelyn Anite.

The ministers, who represent the government’s shareholder interests in the state-owned development finance institution, reviewed the bank’s performance and strategic priorities.

Mr Musasizi said UDB should continue supporting investments that create jobs, increase production and accelerate Uganda’s economic transformation.

“Our support to UDB must enable the people of Uganda and government to achieve the goal of building a $500 billion economy by 2040,” he said.

The UDB delegation was led by Board Chairman Geoffrey Kihuguru and Managing Director Patricia Ojangole.

Mr Kihuguru said the bank’s lending priorities are aligned with the Fourth National Development Plan (NDP IV) and the government’s 10-fold economic growth strategy.

“We remain grateful for the confidence placed in UDB and for the sustained capitalisation, strategic guidance and enabling environment that have allowed the bank to deepen its development impact across the country,” he said.

Dr Ojangole said the bank is positioning itself as a catalytic development finance institution by mobilising long-term capital for private sector-led investments and commercially viable government projects with sustainable cash flows.

She said UDB is also investing in technology and innovation while strengthening its human resource capacity to improve efficiency and deliver on its development mandate.

According to Dr Ojangole, the bank operates dedicated financing programmes for small and medium enterprises (SMEs), women and youth entrepreneurs, with loan facilities ranging between Shs50 million and Shs720 million.

Figures presented by the bank show that its total assets grew from Shs1.22 trillion in 2021 to Shs2.39 trillion by May 2026.

Over the same period, the bank’s gross loans and advances increased from Shs840 billion to Shs1.84 trillion, supported by cumulative loan disbursements amounting to Shs3.1 trillion.

The bank also mobilised Shs1.38 trillion in funding between 2021 and May 2026, including Shs800 billion in government capital injections, Shs390 billion borrowed from development partners and Shs189 billion generated through retained earnings.

UDB said its cumulative capitalisation has now reached Shs1.96 trillion, reflecting continued government support, financing from development partners and the reinvestment of profits to strengthen its balance sheet.