Uganda Development Bank reported a 24% increase in its total outstanding loan portfolio to Ugandan enterprises, reaching 1.6 trillion Shillings in 2023. The total loan disbursements for the year also saw a 21% increase. During the same period, the Bank approved 691 billion Shillings for lending to a total of 201 projects, as indicated in the unaudited performance statement for the year 2023. “Throughout 2023, we achieved robust results that align with our consistent performance trend in recent years, reflecting our commitment as the nation’s Development Finance Institution,” stated UDB Managing Director Patricia Ojangole.

Out of all approved applications, a total of 610 billion Shillings was disbursed to different projects nationwide. In terms of debt collection, the bank successfully recovered a minimum of 466.5 billion Shillings in loan repayments, which was then reinvested to facilitate disbursements to a variety of enterprises throughout the year.

Out of the total funding, the industry sector, including agro-industry and manufacturing, accounted for 59% or 409 billion Shillings. This allocation indicates that the bank is progressing towards its goal of supporting key sectors. Additionally, 19 billion Shillings was approved to enhance the infrastructure sector.

The approved projects are projected to generate 18,558 jobs and contribute 11.39 trillion Shillings in additional output value, with an expected 615.96 billion Shillings in tax revenue for the Government and 3.3 trillion Shillings in foreign revenue earnings. To enhance development in underserved segments such as SMEs, Youth and Women, the Bank continues to implement specialized programs aimed at supporting their growth. During the reporting period, 22 billion Shillings were approved to assist 118 enterprises in the SME, Women and Youth categories, with a total disbursement of 17 billion Shillings. Additionally, through its first Private Equity and Venture Capital initiative in December 2022, UDB invested 9.9 billion Shillings and approved an additional 25.3 billion Shillings for innovative startups in sub-sectors like vaccine manufacturing, electric mobility, local paint production, leather value addition and eco-friendly building materials.

The bank persisted in its endeavors to increase the survival rate of small and medium enterprises beyond their first year, aiming to surpass the current 30% threshold. Identified challenges encompassed areas such as bookkeeping, governance, sustainability planning, market access, credit accessibility and financial literacy.

In a statement conveyed by Denis Ochieng, Director of Operations, UDB Managing Director Patricia Ojangole highlighted the impact of the Business Accelerator for Successful Enterprises (BASE) program, revealing that over 500 enterprises received business training in 2023, with 291 slated for funding incubation in 2024. Notably, 61% of the trained enterprises operated in the agriculture sector. Additionally, through the Bank’s Business Acceleration Program, 40 projects in sectors including agriculture, SME’s Youth and projects, benefiting around 5,000 individuals, have received business advisory assistance, facilitating business growth and development.

Ojangole disclosed that the Bank has allocated 5.066 billion shillings thus far for the preparation of diverse projects and targeted funding programs. In terms of enhancing access to finance for small enterprises, the Bank collaborated with local FinTech company Ensibuuko to digitize over 112 farmer groups.

The Bank has committed 5.066 billion shillings towards various project preparations and targeted funding initiatives. Through a partnership with Ensibuuko, more than 700 farmer-beneficiaries have accessed digital microloans ranging from half a million already disbursed. Additionally, 50 billion shillings has been allocated to capitalize the Climate Finance Facility, aimed at financing and catalyzing private sector investments in local green sectors. Beneficiaries also have access to the Bank’s Green Advisory and Project Preparation Support to enhance their viability as green businesses. UDB’s 2023 performance report highlights new targeted funding initiatives for the private sector and green economy in response to the post-COVID economic recovery. The Bank’s funds increased by 12% year-on-year to 1.38 trillion Shillings, attributed to government capital injections. Furthermore, UDB established its first regional office in Gulu City, with plans for additional offices in Mbale, Hoima, Arua and Mbarara to enhance its presence across Northern, Eastern, Mid-West, West Nile and Western Uganda, respectively.

 

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