UDB to create 3,928 jobs from Q1 approved projects
Uganda Development Bank (UDB), the country’s only national development finance Institution, has today announced that it expects 3,928 jobs to be created from the January to March 2023 (Quarter 1) project approvals.
In the first quarter of 2023, the Bank made significant strides toward fostering economic growth and development in Uganda. With approvals worth UGX 443.18 billion and UGX156 billion in disbursements, UDB aims to create jobs, improve output value, generate tax revenue for the government, and foreign exchange earnings.
“We remain committed to our fundamental promise to promote socio-economic development in Uganda. The approved projects are expected to produce varied development outcomes to include 3,928 jobs, UGX74 billion in additional tax revenue to the government on account of UGX1.6 trillion in improved output value. UGX128.18 billion will be generated as forex for the country,” said Patricia Ojangole, UDB Managing Director.
Development Impact per sector
UDB continues to harness Uganda’s potential as an agrarian country thus the Bank taps into that dividend for sustainable growth. As such, the agro-processing and manufacturing sub-sectors promised the highest number of jobs at 1,728 and 987 respectively.
Primary Agriculture
Within the primary agriculture sector, UDB approved a loan amount of UGX2.21 billion. The approved projects within this sector are anticipated to generate 117 jobs, contribute an output value of UGX4.92 billion, and generate tax revenues of UGX480 million. The funds have been earmarked to provide support to enhance agricultural productivity, promote technological advancements, and address post-harvest losses in the agriculture sector.
Agro-processing
A loan amount of UGX80.42 billion was approved in the agro-processing sector. The approved projects within this sector have the potential to create 1,728 jobs, contribute an output value of UGX420.74 billion, generate tax revenues of UGX25.35 billion, and foreign exchange earnings of UGX48.29 billion. The investment in the agro-processing sector will serve as a crucial market for agricultural products (raw materials), enhancing value addition and promoting exports.
Manufacturing:
Manufacturing is recognized as a pivotal sector in driving economic transformation, offering employment opportunities, import substitution, and boosting the country's export capabilities. UDB approved a loan amount of UGX239.49 billion toward projects within the manufacturing sector. These projects are expected to create 987 jobs, contribute an output value of UGX348.3 billion, and generate tax revenues worth UGX12.78 billion.
Tourism
Efforts to enhance infrastructure and promote Uganda as a desirable tourist destination continue to drive the growth of the country's tourism sector. A loan amount of UGX3 billion was approved to promote infrastructure in the tourism sector. These projects are expected to generate 301 jobs, contribute an output value of UGX 18.4 billion, generate tax revenues of UGX560 million, and foreign exchange earnings of UGX1.71 billion.
Infrastructure
Three (3) infrastructure projects were approved, with a loan amount of UGX117.79 billion. These projects are projected to create 795 jobs and contribute an output value of UGX844.55 billion. This investment plays a crucial role in strengthening Uganda's infrastructure, fostering economic growth, and attracting additional investments.
Spurring development through SMEs, Youth and Women
More than ever, the Bank is committed to empowering the SMEs, youth and women. Under the UDB Special Programs, a financing vehicle directly targeting SMEs, Youth-owned and Women-owned enterprises, the Bank approved UGX2.9 billion toward supporting 12 projects. This segment is expected to generate 206 jobs.
“The imperative to address our country’s challenges of poverty, inequality and unemployment has become increasingly important and urgent. As a Development Financial Institution, we have a strong resolve to transform the lives of millions of Ugandans and improve the quality of life across Uganda, in line with our mandate and vision of the government of Uganda to positively impact lives,” Ojangole concluded.
