The Uganda Development Bank (UDB) has strengthened its financial position, with cumulative capitalization rising to Shs1.96 trillion, supported by sustained government investment, development partner financing, and the reinvestment of retained earnings.
The stronger capital base positions UDB to play a bigger role in financing Uganda's private sector at a time when businesses require affordable, long-term financing to expand production, adopt new technologies, and compete in regional and international markets.
The developments were highlighted during a meeting between the UDB Board of Directors and officials from the Ministry of Finance, Planning and Economic Development, where the bank presented its financial performance, growth trajectory, and strategic priorities.
Managing Director Dr. Patricia Ojangole said UDB is positioning itself as a catalytic development finance institution that mobilises and deploys long-term capital into private-sector-led investments as well as commercially viable government projects with sustainable cash flow.
She revealed that between 2021 and May 2026, UDB mobilised Shs1.38 trillion in additional funding, comprising Shs800 billion in government capitalization, Shs390 billion borrowed from development partners, and Shs189 billion generated through retained earnings that were reinvested to strengthen the bank's capital base.
"Cumulative capitalization has reached Shs1.96 trillion, reflecting sustained government support, development partner confidence, and the bank's deliberate retention of earnings to reinforce its balance sheet," Ojangole said.
She noted that the increased capitalization enables UDB to extend more long-term financing to businesses operating in productive sectors, particularly where commercial banks are constrained by short-term lending models.
According to Ojangole, the additional capital will improve access to financing for investments such as factory expansion, machinery acquisition, innovation, and technology upgrades, helping businesses increase productivity and scale their operations.
She added that UDB is also expanding inclusive financing through specialised programmes targeting small and medium enterprises (SMEs), women-owned businesses, and youth entrepreneurs.
The financing packages under these programmes range from Shs50 million to Shs720 million, providing businesses with capital to grow, formalise operations, and improve competitiveness.
Ojangole further said the bank is investing in technology, innovation, and human capital development to improve operational efficiency and strengthen institutional resilience.
"By embracing technology and innovation, we are enhancing our ability to serve our clients better while ensuring that UDB remains responsive to the changing needs of Uganda's economy," she said.
UDB's financial records indicate that total assets nearly doubled from Shs1.22 trillion in 2021 to Shs2.39 trillion by May 2026. Over the same period, gross loans and advances increased from Shs840 billion to Shs1.84 trillion, supported by cumulative loan disbursements amounting to Shs3.1 trillion.
Speaking during the engagement, Minister of State for Finance, Planning and Economic Development (General Duties), Henry Musasizi, said UDB has a critical role to play in supporting Uganda's ambition of building a USD500 billion economy by 2040.
He urged the bank to prioritise financing investments that increase production, create employment opportunities, strengthen local enterprises, and improve Uganda's competitiveness.
The UDB delegation was led by Board Chairman Geoffrey Kihuguru and Managing Director Dr. Patricia Ojangole.
Kihuguru said the bank's strategic priorities remain aligned with the Fourth National Development Plan (NDP IV) and the government's 10-fold economic growth strategy, both of which seek to accelerate industrialisation, productivity, and private sector investment.
"We remain grateful for the confidence placed in UDB and for the sustained capitalization, strategic guidance, and enabling environment that have allowed the bank to deepen its development impact across the country," Kihuguru said.
Analysts say the continued strengthening of UDB's capital base is expected to have broader economic benefits by increasing the availability of long-term development finance. A better-capitalised development bank can help unlock private investment, support industrialisation, promote value addition, strengthen local manufacturing, and enable businesses to transition from small-scale enterprises into commercially sustainable companies.
