Government reaffirms commitment to capitalise UDB as Bank deepens development finance role

February 2, 2026 in Companies, Finance, Financial Services, Trade & Industry by Editor

Government has reaffirmed its commitment to strengthening Uganda Development Bank’s capital base, positioning the national development finance institution to play a larger role in funding priority sectors, supporting private enterprise growth and driving Uganda’s long-term economic transformation.

Government has reaffirmed its commitment to strengthening the capital base of Uganda Development Bank (UDB), signalling continued reliance on the national development finance institution to drive investment, industrialisation and long-term socio-economic transformation.

The commitment was reiterated during a graduation ceremony for UDB staff who completed a leadership and ideological training programme at the National Leadership Institute (NALI) in Kyankwanzi, as the Bank steps up implementation of its new five-year business strategy.

Government has already allocated an additional UGX 1 trillion to UDB in the current financial year, a move aimed at expanding the Bank’s lending capacity and enabling it to play a stronger catalytic role in priority sectors of the economy.

Officials say the recapitalisation reflects a broader policy push to position UDB as a central instrument in delivering Uganda’s Tenfold Growth Strategy, the Fourth National Development Plan (NDP IV) and Vision 2040, with a particular focus on building a competitive domestic private sector.

Speaking at the event, Prime Minister Robinah Nabbanja said government views UDB as a strategic vehicle for nurturing a strong class of Ugandan entrepreneurs capable of driving structural transformation.

“Through institutions like UDB, government intends to create enterprises that generate jobs, expand production, contribute to tax revenues and strengthen foreign exchange earnings,” she said, noting that further efforts would be made to strengthen the Bank’s capital base in line with its growing mandate.

UDB has in recent years emerged as a key financier of long-term projects in agriculture, agro-industrialisation, manufacturing and infrastructure—sectors often underserved by commercial banks due to their longer gestation periods and higher risk profiles.

The Kyankwanzi training programme comes as UDB enters the second year of implementing a new five-year strategy that places greater emphasis on project structuring, transaction advisory and crowding in development finance from both domestic and international partners.

UDB Managing Director Dr Patricia Ojangole said the training was intended to sharpen staff understanding of the Bank’s development mandate at a time when its role in the economy is expanding.

“The insights gained have reinvigorated our team as we execute a strategy that goes beyond lending, to structuring complex transactions and mobilising blended finance in support of Uganda’s development priorities,” Dr Ojangole said.

She added that the programme also deepened staff appreciation of Uganda’s strategic position in a shifting global economic order, reinforcing UDB’s commitment to supporting local enterprises to remain resilient amid global volatility.

“Our objective is to provide the right financial instruments that strengthen Uganda’s competitiveness and enable the private sector to grow sustainably,” she said.

The Director of NALI Kyankwanzi, Col Okei Rukogota, commended UDB for subjecting its entire staff to ideological and leadership training, describing it as a rare demonstration of institutional cohesion within the financial sector.

The week-long programme covered national development priorities, the role of finance in building a competitive economy, Uganda’s security and geopolitical interests, and transformative approaches to public and corporate leadership.

UDB has aligned its operations with NDP IV, focusing on primary agriculture, industry and services, including tourism, health, education, science and technology, as well as infrastructure. Agriculture, agro-industry and manufacturing currently account for about 75 percent of the Bank’s portfolio, reflecting government’s emphasis on value addition and export-led growth.

As government signals sustained capital support, UDB is expected to deepen its role as a cornerstone of Uganda’s development finance architecture, bridging financing gaps in sectors critical to long-term economic transformation.