UGX 150 Billion Bonanza for Local Contractors as UDB Reopens Financing Window

June 22, 2026 in Business, Companies, Financial Services by Editor

UDB has reopened prequalification under its UGX 150 billion Local Contractors Financing Initiative, offering local firms access to affordable financing, equipment funding and capacity-building support to strengthen participation in Uganda’s infrastructure and development projects.

 

Ugandan contractors seeking a larger stake in the country’s growing infrastructure sector have been handed a fresh opportunity after the Uganda Development Bank (UDB) reopened prequalification under its UGX 150 billion Local Contractors Financing Initiative.

The programme, launched in 2023, is designed to address one of the biggest barriers facing indigenous contractors—limited access to affordable and patient capital—while strengthening their technical and managerial capacity to compete for major public and private sector projects.

The latest prequalification exercise comes amid continued demand for contractor financing and follows growing interest from firms seeking support to participate in Uganda’s infrastructure-led development agenda.

According to the Private Sector Development Programme Annual Performance Report 2023/24, local suppliers accounted for 63 percent of public procurement awards, up from 48 percent the previous financial year. While the improvement signals progress, the figure remains below the national target of 75 percent, highlighting the capacity and financing challenges that continue to constrain local participation.

Implemented in partnership with the Uganda Institution of Professional Engineers (UIPE) and the Uganda National Association of Building and Civil Engineering Contractors (UNABCEC), the initiative offers a combination of financial and non-financial support aimed at strengthening local firms.

Prequalified contractors can access concessionary working capital, equipment and asset financing, performance guarantees and other tailored financial products. The programme also provides training in project management, financial management, corporate governance, contract administration and project programming.

“Ugandan contractors are central to Uganda’s industrialisation and infrastructure development agenda. However, many firms continue to face financing and capacity constraints that limit their ability to compete for and complete large infrastructure contracts,” said Sumin Namaganda, Senior Manager Corporate Affairs at Uganda Development Bank.

“Through this Initiative, UDB is providing both the financing and institutional support required to build stronger, more competitive Ugandan firms capable of delivering transformative projects and contributing to sustainable economic growth,” she added.

The initiative targets contractors operating across transport, energy, water and sanitation, agriculture, manufacturing, extractives, education, health, tourism, telecommunications, creative industries and the oil and gas sector.

By easing access to affordable financing and strengthening technical and managerial capabilities, the Initiative aims to increase local content participation, create employment opportunities, improve project delivery, and accelerate Uganda’s industrialisation agenda.

Since its launch, UDB has approved financing worth UGX 59.03 billion, with UGX 24.89 billion disbursed to qualifying contractors by March 2026. Beneficiary firms are currently implementing projects across multiple sectors, reflecting the programme’s growing role in expanding local participation in national development projects.

Contractors interested in joining the programme have until July 3, 2026, to submit Expressions of Interest. Prequalification documents can be collected from UDB’s head office and regional branches in Hoima, Gulu and Mbale.