UDB hopes to get more money to lend to borrowers
The failure to have physical presence in different areas has been highlighted as one of the major issues fuelling limited capital and operation of the Uganda Development Bank.
According to Patricia Ojangole, the UDB managing director, this situation is likely to change with increasing government funding.
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She said so far, Shs 274 billion out of the promised Shs 500 billion has been advanced to UDB.
Ideally UDB is mandated to help finance a number of the country’s national development priorities such as agriculture, tourism and manufacturing among others.
It is thus expected to set up branches in different parts of the country.
But over the years, it has not been able to fulfil this mandate because of limited funding.
Ojangole said this could change because there is increased international confidence in the bank, which could pave the way for borrowing from different international financial institutions.
"In the meantime, UDB will not expand it's area of focus as demanded by different private sector players but will stick to the few that have been prioritised," she said.
Ojangole is confident government shall eventually advance UDB all the promised money and this will allow them to lend it more affordably to those who qualify to get it.
