The Minister of State for Finance, Hon. Henry Musasizi, has tabled a request to borrow $175 million to capitalize Uganda Development Bank Limited (UDB).
The proposal has been forwarded to the Committee on National Economy for further scrutiny.
UDB is a national Development Finance Institution (DFI) with a mandate to accelerate socio-economic development in Uganda through sustainable financial interventions.
The bank supports projects within the private sector that demonstrate potential to deliver high socio-economic value, in terms of job creation, improved production output, tax contribution, and foreign exchange generation.
The loan is intended to enhance UDB's capital base, enabling it to provide more financial support to key sectors such as youth, women, and Small and Medium Enterprises (SMEs).
However, the proposal's fate now lies in the hands of the Committee on National Economy, which will scrutinise the request before making a recommendation.
As the committee reviews the proposal, concerns about the loan's implications on Uganda's debt burden and the bank's ability to effectively utilize the funds may arise.
Nevertheless, if approved, the loan could potentially boost UDB's capacity to drive socio-economic development in Uganda.