Uganda Development Bank Eyes SMEs With Shs612bn Bounty
According to the Development Impact Report 2021, the latest disbursement to the bank was used to support 190 enterprises around the country in the said sectors.
Small and Medium Enterprises (SMEs) in Primary Agriculture, Manufacturing, Tourism, Agro-processing and Human-Capital Development and Infrastructure including ICT is set to be the first beneficiaries of the Shs612bn bounty that Uganda Development Bank (UDB) has gathered.
The increase in spending by the country’s National Development Finance Institution, which is supported by the government’s continued capitalization of the bank, comes as the number of activities grows and more SMEs demand for credit, after the full reopening of the economy.
Speaking at the release of Development Impact Report 2021, the Bank’s Chief Economist Francis Mwesigye says that they are confident they will continue to increase the number of enterprises they support for better economic impact, hoping that the government will continue raising the capitalization funds for the Bank.
This Direct Impact Report reflects UDB’s work and coverage through job creation, output value, forex, and tax generated by enterprises supported by the Bank. Through 2021, the highest profits being posted by enterprises in the Manufacturing sector which contributed 39%, followed by Agro-processing at 32%, and 21% from Primary Agriculture sectors respectively. The tourism and health sectors contributed 4% and 2% respectively
““In the intervening period, the Bank’s investment created and maintained a total of 41,338 jobs, and a total output value of UGX 2.445 trillion was realized. This output value contributed UGX84 billion in form of tax revenue to the government, and forex earnings of UGX405 billion,” said Dr. Francis Mwesigye.