Govt to give UDB additional shs55bn for capitalisation

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Govt to give UDB additional shs55bn for capitalisation
UDB Managing Director, Patricia Ojangole.

In a significant move to bolster economic growth and support Ugandans in wealth creation, Finance Minister Matia Kasaija announced that government will capitalize the Uganda Development Bank (UDB) with an additional shs55 billion.

The increased funding for UDB aims to provide more accessible and affordable financing options for businesses and individuals seeking to invest and expand their operations.

"During  financial year 2024/25, the bank will continue to provide capital to businesses involved in value addition, including promotion of innovation in the areas of science and technology. It will also support youth-led enterprises, manufacturers, and also provide working capital to exporters and those involved in import substitution. Green financing is also going to be enhanced to ensure climate adaptation and mitigation," Kasaija said.

‘’To achieve this, government is going to further capitalise UDB with another shs55 billion. Government is also in the process of acquiring for UDB credit lines worth shs1.083 trillion to lend more to wealth creators. Uganda Development Bank has grown into a formidable shs1.6 trillion bank in assets, providing patient and relatively affordable capital to those adding value to agricultural raw materials, manufacturers, as well as investors in tourism and hospitality, infrastructure, and education. It has created a total of 51,841 jobs.’’

Additionally, Kasaija revealed that the government will allocate an extra shs100 billion to the Emyooga program in the next financial year, 2024/25.

Emyooga, a government initiative designed to support various socio-economic groups across the country, focuses on helping Ugandans create wealth and improve their incomes through affordable financial services and capacity-building programs.

"Government has provided a total of Shs 480 billion through Emyooga. Out of this, a total of shs268 billion has been disbursed to 6,810 Emyooga SACCOs. The beneficiaries have been able to save shs85 billion to further grow their SACCO funds. As a result, 607,636 individuals across the country have benefitted from the Emyooga funds, and shs80.28 billion has been recovered from the first-round beneficiaries and it is being advanced to others,’’Kasaija noted.

The government’s strategy to capitalize UDB and expand the Emyooga program aligns with broader efforts to stimulate economic activity, reduce poverty, and enhance the overall standard of living for Ugandans.

By providing targeted financial support, the government aims to empower entrepreneurs, small and medium-sized enterprises (SMEs), and other critical sectors of the economy.

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