$20m loan to boost Uganda Development Bank in offing

June 20, 2018 in Companies, Finance, Financial Services by Editor

June 20, 2018—Uganda Development Bank (UDB), which the government and private sector wants to see pull manufacturing and industry to the next level, is getting a financial injection from the African Development Bank (AfDB).

AfDB is offering $20 million to recapitalize the bank, and help it become a more effective lending institution for viable business ventures. UDB is fully owned by the government having been founded in 1972, but its glory days were shortlived after political instability set in and lend to steady collapse of the economy.

Patrick Ocailap, deputy Secretary to the Treasury  said early this week, “We are in the final stages to secure the loan from the African Development Bank to capitalize UDB. We hope that once the money is secured it will help our local business communities to access cheap loans from Government instead of over depending on expensive loans being offered by the commercial banks.”

He was talking  to business people during a breakfast briefing organised by Uganda Revenue Authority in Kampala. Ocaliap said the government will be also be adding another UGX60 billion to strengthen UDB’s capital base and capacity to support the private sector.

Ocailap said the AfDB loan was in response to queries raised by the business community over the government’s inability to help them access to cheaper loans.