Finance minister directs UDB to prioritise financing for ATMS growth sectors
UDB's cumulative capitalisation has now reached UGX 1.96 trillion, reflecting continued government support, confidence from development partners and the bank's strategy of retaining earnings to reinforce its balance sheet and expand its development financing capacity.
Finance Minister Henry Musasizi has directed the Uganda Development Bank (UDB) to prioritise financing for the government’s key economic growth sectors under the Agro-industrialisation, Tourism, Mineral Development, and Science, Technology and Innovation (ATMS) strategy to accelerate Uganda’s journey towards becoming a US$500 billion economy by 2040.
Musasizi made the remarks during a meeting with the Board of Directors and Management of Uganda Development Bank at the Ministry of Finance, Planning and Economic Development.
The meeting was also attended by the State Minister for Planning, Amos Lugoloobi, and the State Minister for Privatisation and Investment, Amina Zawedde Mukalazi, who together with the Finance Minister represent the government’s shareholder interests in the development bank.
The UDB delegation was led by Board Chairman Geoffrey Kihuguru and Managing Director Dr Patricia Ojangole.
Musasizi said UDB’s financing interventions should play a central role in supporting government efforts to transform the economy by directing long-term capital to strategic sectors capable of driving industrialisation, creating jobs and increasing exports.
He noted that the bank’s support must empower Ugandans and contribute significantly to the government’s ambition of building a US$500 billion economy by 2040.
Board Chairman Geoffrey Kihuguru said the bank’s investment priorities are fully aligned with the Fourth National Development Plan (NDP IV) and Uganda’s 10-fold economic growth strategy.
“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.
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, while also financing commercially viable government-led projects with clear cash flow potential.
She said the bank is increasingly leveraging technology and innovation while investing in human capital to improve operational efficiency, strengthen institutional resilience and enhance delivery of its development mandate.
Ojangole added that UDB continues to expand access to finance for small and medium-sized enterprises (SMEs), women and youth entrepreneurs through specialised financing programmes offering loans ranging from UGX 50 million to UGX 720 million.
According to figures presented during the meeting, UDB has recorded significant growth over the past five years.
Between 2021 and May 2026, the bank’s total assets nearly doubled from UGX 1.22 trillion to UGX 2.39 trillion, while gross loans and advances increased from UGX 840 billion to UGX 1.84 trillion, supported by cumulative loan disbursements worth UGX 3.1 trillion.
During the same period, the bank mobilised UGX 1.38 trillion in financing, comprising UGX 800 billion in government capitalisation, UGX 390 billion in borrowings from development partners and UGX 189 billion in retained earnings reinvested to strengthen its capital base.
UDB’s cumulative capitalisation has now reached UGX 1.96 trillion, reflecting continued government support, confidence from development partners and the bank’s strategy of retaining earnings to reinforce its balance sheet and expand its development financing capacity.
The meeting underscored the government’s expectation that UDB will continue serving as a key vehicle for financing investments in the ATMS sectors, which are expected to drive Uganda’s industrial transformation and long-term economic growth.
