Kasese, Uganda: UDB has reported significant year-on-year growth for 2024, showcasing robust performance across key metrics, characterized by healthy asset quality and increased development impact throughout the country.
The Bank’s loan portfolio experienced remarkable growth in 2024, increasing to UGX1.67 trillion, a testament to UDB’s continued commitment to fostering Uganda’s socio-economic development.
The Bank’s total assets grew by 3%, from UGX1.67 trillion to UGX1.71 trillion, attributed to increased funding primarily from government capital allocations and other partners.
“This solid performance reflects our unwavering commitment to driving change and fostering a prosperous future for Uganda,” Joshua Allan Mwesiga, the Bank’s Director for Strategy and Corporate Affairs, revealed during a press conference held at Bwera School of Nursing and Midwifery. This facility, which UDB funded, is vital for training future professionals in nursing, midwifery, and environmental health sciences.
“UDB is more than just a financial institution; it is a transformative force. We are devoted to empowering individuals and businesses across Uganda, stimulating socio-economic growth, and paving the way for a brighter future for our nation.”
Development Outcomes
UDB approved 171 projects projected to create 17,832 jobs, generate profits of UGX1,778 billion, and contribute UGX455 billion in taxes (Corporation tax and PAYE), as well as bring in UGX1,808.53 billion in foreign exchange earnings.
The Bank has made significant strides in supporting the operationalization of the National Development Programs approving UGX454 Billion that contributed to the different NDPIII programs. Notable contributions were made in promoting agro-industrialization, tourism development, manufacturing, human capital development (in health and education), private sector development, and regional development.
For the manufacturing sector, UGX219.67 billion was allocated for 32 projects, while 25 projects in agro-industrialization received a total of UGX88.31 billion. Additionally, 52 projects were approved under Human Capital Development, 12 for integrated transport infrastructure and services, and 32 for tourism development.
Catalyzing Private Sector Growth
The Bank approved UGX455 billion for private sector development across various regions in the country, to stimulate rapid, private-sector-led growth, enhance shared prosperity and economic expansion, and serve as a driving force for socio-economic development.
Most loan approvals (45) were in the Primary Agriculture sector, followed by manufacturing (32).
Loan Disbursements
The Bank disbursed UGX388 billion in 2024 to various projects. The Bank has over 770 active projects in 105 districts across the country.
Promoting Investment Readiness
UDB provides training, incubation programs, business advisory services, and technical support to existing and prospective customers to empower small and medium enterprises to become sustainable, profitable, and bankable. In 2024, the Bank achieved several key milestones to improve business readiness:
Established an incubation center in conjunction with Uganda Management Institute to train businesses on formalizing and operating effectively.
Incubated 71 businesses, with 60 graduating with certifications.
Conducted various nationwide activities to promote entrepreneurship, support cooperatives.
The Bank also engages in non-financial activities to address technical and financial barriers, allowing impactful project ideas to come to fruition. UDB continues implementing targeted funding initiatives that enhance access to products and services.
Driving the Green Finance Agenda in Uganda
In 2024, the Bank approved 34 projects classified as green, marking a 13% increase from the 30 green projects approved in 2023.
UDB continued to seek partnerships with strategic allies to enhance its resource pool for green financing initiatives. Notably, the Bank participated in the UN Climate Conference (COP29) in Baku, Azerbaijan, where it received acclaim for its efforts in providing patient capital to private enterprises focused on low-carbon industrialization, green manufacturing, and climate-resilient infrastructure.
Specialized Interventions to Address Systemic Challenges:
Financing Startups and Private Equity
In 2024, the equity pipeline achieved a remarkable 130% growth, showcasing strong performance. UDB’s equity investments are primarily aimed at financing enterprises by acquiring shareholding. The Bank recoups its investments through dividends, revenue sharing, share value appreciation, and other methods outlined in the investment agreements.
Supporting Science, Technology, and Innovation (STI):
UDB is partnering with the Science, Technology, and Innovation Secretariat to manage a UGX 6.2 billion Innovation Fund on behalf of the Government. This fund aims to support seven early-stage enterprises involved in medicine, cassava processing, and silkworm production. Additionally, the Bank actively collaborates with key players in the STI domain to identify and fund innovative projects for commercialization and scalability.
Promoting Financial Inclusion
The Bank has adopted a multi-faceted approach to enhance financial inclusion by providing credit to underserved borrowers at the grassroots level. By leveraging innovation, technology, community involvement, and partnerships, UDB effectively addresses underserved populations’ unique challenges, promoting economic participation and improving the quality of life for many Ugandans.
Serving Underserved Segments: SMEs, Youth, and Women
In 2024, UDB successfully expanded its loan portfolio for SMEs, youth, and women by 39%, increasing from UGX 33.05 billion at the end of December 2023 to UGX 49.50 billion by December 2024.
Financial Performance
The Bank’s unaudited financial results for the year ending December 31, 2024, demonstrated robust performance, with a profit after tax of UGX55.13 billion.
Recognitions and Awards
The Bank was named Regional Bank of the Year—East Africa at the 2024 Africa Bankers’ Awards in recognition of its leadership in various categories and its ability to withstand external shocks while providing socially and economically supportive lending that improves revenue and profitability, all while prioritizing green and sustainability agendas.
UDB and its Managing Director have been honored as Sustainability Leaders of the Year for four consecutive years at the Karlsruhe Sustainability Awards in Germany. The Bank was the first sustainability-rated bank on the continent and one of the first five globally. This accolade is awarded to individuals and institutions committed to creating genuine value for all stakeholders while prioritizing societal impact and environmental conservation.
Credit Ratings
In 2024, UDB retained a National Long-Term Rating of ‘AAA (uga)’ with a Stable Outlook, the highest attainable rating on Uganda’s national scale, reflecting a high propensity for government support. Fitch Ratings also affirmed UDB’s Long-Term Issuer Default Rating (IDR) at ‘B+’ with a Negative Outlook. These ratings lend credence to the UDB’s governance and long term sustainability.
UDB has consistently been rated as an A+ institution by the Association of African Development Financial Institutions (AADFI), being recognized as a Best-Performing Development Finance Institution (DFI) in Africa. This recognition is awarded to AADFI member DFIs that demonstrate excellence in compliance with various prudential standards, particularly in governance, operational efficiency, and overall financial and institutional performance.
In his conclusion, Mr Mwesiga affirmed that this upward momentum is a testament to the Bank’s unwavering commitment to sparking economic development and the Bank’s dedicated efforts in supporting sustainable projects across Uganda.
“The substantial financial growth demonstrates our resilience and highlights strategic initiatives that enhance economic stability and propel national development goals forward.”
Speaking at the event, Hon. Godfrey Kabbyanga, the state minister for National Guidance, mentioned, “I would like to extend my gratitude to the board, management, and staff of Uganda Development Bank for their diligent efforts in steering the Bank towards achieving its objectives. Your hard work and dedication are commendable, and your unwavering commitment has fostered an environment of growth, innovation, and resilience.”
“Acknowledging UDB’s role in our country’s broader development agenda is essential. In a rapidly changing economic landscape, where inflation, climate change, and global uncertainties abound, the Bank has continued to fulfill its mandate of providing financial solutions and fostering sustainable development. Your interventions in the health and education sectors have played a pivotal role in bridging the gap in skills development and facilitating the much-needed development in the health secto. As Government, we will continue to support you so as to enable you deliver on your critical mandate,” Hon. Kabbyanga said.
In conclusion, Hon. Kabbyange encouraged the people of Kasese District and the Rwenzori Region to explore this opportunity and take up affordable and patient loans from UDB for their growth.
Dr. Francis Mulekya Bwambale, a Director of Bwera School of Nursing and Midwifery (BSNM), appreciated the Bank for the support extended to the learning institution.
“We thank UDB for your continued partnership with our school. We have created employment for 33 Ugandans in the education and development sector. The over 400 students who have graduated from BSNM have joined the labour industry and are providing the much-needed healthcare that our country and region need. Each of these facility beneficiaries have families and other dependants they support for livelihoods at the community level,” Dr. Mulekya mentioned.
UDB funds helped the school in constructing and equipping; the skills/simulation laboratory for nursing and midwifery students; the ICT library to enhance computer skills and e-learning; the library that accommodates 200 students; and a multi-purpose examination hall that sits 500 students.
“As a beneficiary of UDB, the people’s Bank, BSNM Ltd has witnessed significant growth since receiving financial support from the Bank. The UDB facility has enhanced the school’s facilities and training capabilities. We are so grateful to UDB for believing in us and supporting our vision and mission,” he added.
He appealed to the government and other partners to further capitalise UDB as this is the only way to create bigger socio-economic impact.
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