UDB‘s loan portfolio hits 1.2tn as bank forecasts economic rebound in 2023
Uganda Development Bank (UDB), the country’s national development finance institution, has announced a massive gross loan portfolio growth from Shs851 billion in December 2021 to Shs1.29 trillion in December 2022.
This was announced on Friday during UDB’s annual press briefing held at Bwendero Dairy Farm in Hoima District. Bwendero is a benefiaciary of funding by UDB and currently runs a 580-tons per day sugar plant.
Keep Reading
At the event, UDB also revealed that currently, the bank’s total assets stand at Shs1.44 trillion from Shs1.21 trillion at the start of 2022, representing a 19% growth.
In her remarks, UDB managing director, Patricia Ojangole attributed the tremendous results to increase in funding, mainly through capital allocations from government and draw down of lines of credit from various other funding partners.
“This performance is anchored on the bank’s deliberate efforts towards the revitalisation and transformation of Uganda’s economy,” Ojangole said, adding that this gives them confidence that the bank is on track to achieve its strategic objectives.
Meanwhile, the results indicate that value of new loan applications approved to receive fundings grew by 40% against the 2021 performance registering a total of Shs894 billion from the Shs635 billion registered in 2021.
The industry sector (comprising of manufacturing and agro industry) received the highest number of approvals worth Shs454.75 billion with primary agriculture receiving Shs96.75 billion.
Disbursements
The bank also noted that it disbursed a total of Shs776.6 billion during the year 2022, improving by 81% from Shs428 billion disbursed the previous year 2021.
Of this sum, 76% was disbursed to projects engaged in agriculture, agro-processing and manufacturing.
Futher more, through its Special Programs intervention, the bank says it approved over UGX31.5 billion, with small and medium-sized firms (SMEs) whereby 128 enterprises (including 42 women-owned) benefitted from this program.
Ojamgole also revealed that in 2022 alone, regional training sessions targeting 1,130 SMEs were conducted in Kampala, Mbarara, Fort Portal, Lira, Gulu, Arua, Masaka, and Mbale districts.
As a result of these sessions, she noted that the bank identified funding prospects amounting to Shs147.3 billion.
“Conversely, the bank earmarked 274 enterprises to participate in the inaugural UDB Business Incubation Program to be held this year, the aim of which is to facilitate the incubatees to be credit-ready, and potentially prospective customers of UDB,” Ojangole noted.
Speaking at the event, Jenipher Namuyangu, the Minister of State for Bunyoro Affairs thanked the management and staff of UDB for extending support to all regions of the country and specifically to the agriculture sector.
“Government recognises the efforts of stakeholders like UDB who intervene in accelerating the growth for key sectors like; agriculture, tourism, human capital development, among others which are in line with the governments National Development Plan 3 (NDP III),” Namuyangu said.
She added, “I am pleased to know that Bwendero Dairy Farm is a beneficiary of funding from UDB, and I believe the support has enabled them to expand their operations and, in the end, improve the livelihoods of our people in Hoima and the surrounding areas who are directly or indirectly impacted by the existence of Bwendero Dairy farm,”
John Magara, the proprietor of Bwendero Dairy Farm, appreciated the bank for the support which has enabled them to install a sugar plant in Kitoba Village Hoima District.
The plant which operated at 38.6% in 2021 has seen its performance improve, doubling to 77.3%, producing 580 tons per day in 2022.
“The farm has been able to diversify its operations to sugar processing, distillery, and milling, hence producing brown sugar, maize flour, pharmaceutical ethanol, among others,” Magara disclosed.
