UDB graduates Mbale SMEs under enterprise development program

October 20, 2025 in Business, Companies, Trade & Industry by Editor

Patient lender Uganda Development Bank (UDB) has graduated 28 small and medium enterprises (SMEs) from the Mbale cohort of its Enterprise Development Program (EDP), marking another milestone in its drive to make Uganda’s private sector more resilient and investment-ready.

The Enterprise Development Program, implemented in partnership with Makerere University Business School’s Entrepreneurship, Innovation and Incubation Centre (MUBS-EIIC), provides hands-on training and advisory support to entrepreneurs. The initiative blends classroom instruction with mentorship and practical exercises, focusing on improving management capacity, financial literacy, and business formalisation.

In Mbale, 32 enterprises were incubated, with 28 completing the intensive two-month course covering key disciplines such as governance, record-keeping, marketing, risk management, and financial planning. The enterprises represented a cross-section of Uganda’s economic landscape—spanning agriculture, manufacturing, agro-processing, tourism, health, education, and ICT—underscoring the sector’s diversity and growth potential.

Dr. Francis Mwesigye, UDB’s Director of Economic Research and Knowledge Management, said the program is part of the Bank’s broader mission to strengthen the backbone of Uganda’s private sector.

“The SME sector is the engine that drives growth in our economy, which is why we focus on empowering it,” Dr. Mwesigye said during the graduation ceremony. “Through this flagship non-financial intervention, we aim to equip entrepreneurs with practical training, knowledge, and tools to start, strengthen, and scale their businesses. The program also positions participants strategically to access UDB’s tailored financial solutions and thrive in today’s competitive market.”

According to Dr. Mwesigye, SMEs account for roughly 90pc of Uganda’s private sector activity, contributing about 80pc of manufacturing output and employing over 2.5 million people. However, only about 30pc survive beyond their third year—a gap UDB aims to close by combining access to finance with enterprise capability development.

“This highlights the sustainability challenges faced by many Ugandan enterprises,” he added. “As a development bank, we are intentionally addressing these issues by supporting entrepreneurs in building resilient and sustainable businesses, a mission that directly aligns with our mandate to improve the quality of life for Ugandans.”

For many participants, the program’s impact is already tangible. Richard Magoola, proprietor of Richie Hotels and Safaris, said the training transformed how he manages his enterprise.

“Before joining the EDP, I was operating informally. My business was not registered, and I had no proper records. Since completing the training, everything has changed. I have drafted a business proposal, organised my accounts, pay taxes, and now run my business professionally,” Magola said.

Since its inception, UDB’s EDP has incubated 275 SMEs through previous cohorts held in Kampala, Gulu, and Arua. The Bank plans to extend the program to Lira, Mbarara, Fort Portal, and Masaka later this year as part of a nationwide capacity-building drive.

The EDP is implemented in partnership with several national institutions, including the Uganda Registration Services Bureau (URSB), Uganda National Bureau of Standards (UNBS), Uganda Revenue Authority (URA), Uganda Investment Authority (UIA), National Social Security Fund (NSSF), and the Uganda Women Entrepreneurs’ Association Limited (UWEAL).

UDB, Uganda’s national development finance institution, continues to position itself as a catalyst for inclusive growth by combining financing with technical support. The Bank’s portfolio is heavily weighted toward agriculture, agro-processing, and manufacturing—sectors that account for 80pc of its investments—while also supporting projects in tourism, human capital development, and infrastructure, including ICT.