Government has capitalised Uganda Development Bank (UDB) to Shs2.2 trillion to strengthen its capacity to provide affordable, long-term financing for industrialisation, export growth, value addition and other strategic investments.
The additional Shs442.2 billion provided to the bank in the 2026/27 financial year is expected to enable UDB to expand its role in financing investments aligned with the country’s development priorities.
Finance Minister Henry Musasizi said the strengthened capital base will enable the bank to support agro-industrialisation, tourism, mineral-based industrialisation, and investments in science, technology and innovation.
Minister Musasizi made the remarks on Tuesday while commissioning UDB Tower, the bank’s renovated 14-storey headquarters on Hannington Road in Kampala.
He said UDB occupies a critical position in Uganda’s development architecture by connecting government priorities with capital required to turn them into productive investments.
“Uganda’s next phase of economic transformation requires strong institutions with the capacity to mobilise long-term capital and channel it towards productive investments,” he said.
The minister said strengthening UDB’s institutional capacity will enable the bank to support investments that expand the country’s productive base, create jobs, increase exports and improve household incomes.
He said the bank’s mandate is aligned with the government’s Tenfold Growth Strategy, which seeks to transform Uganda into a $500 billion economy by 2040.
Minister Musasizi said achieving the target will require increased mobilisation of domestic and private capital, as well as foreign direct investment.
He also urged UDB to expand innovative financing through private equity, structured and project finance, corporate bonds, blended financing and public-private partnerships.
He said the bank should also use de-risking and credit-enhancement mechanisms to attract more private capital into productive sectors.
UDB Board chairman Geoffrey Kihuguru said the new headquarters should be viewed as part of the bank’s long-term institutional investment rather than merely a physical facility.
He said UDB must continue strengthening its governance, human resource capacity and infrastructure to mobilise capital, support productive enterprises and catalyse investments of national importance.
“Our responsibility is to build a development finance institution that is not only relevant to Uganda’s needs today, but one that has the capacity and resilience to serve generations to come,” Mr Kihuguru said.
UDB managing director Patricia Ojangole said the commissioning marks an important milestone in the bank’s institutional transformation.
She said the modern facility will bring staff and operations together while improving collaboration, innovation and service delivery.
The bank’s 2025 Development Impact Report shows that its financing is contributing significantly to economic activity.
The 525 enterprises assessed generated Shs6.261 trillion in gross revenue, Shs1.158 trillion in net profit after tax and Shs387 billion in tax contributions.
The enterprises also created and maintained 69,202 jobs, including 50,221 for young people and 27,641 for women.
They generated Shs1.847 trillion in foreign exchange earnings, further demonstrating the contribution of UDB-funded enterprises to Uganda’s economy.
The bank currently has 904 direct customers and 112,399 total customers across 114 districts, with operations covering three regions.
UDB plans to extend its operations to two additional regions during the current financial year.
The 7,806-square-metre UDB Tower has 14 floors and features modern workspaces, customer-service facilities, meeting and training rooms, an innovation room, a boardroom and upgraded information and communication technology infrastructure.
The building also has a 25-kilowatt solar power system, smart energy-management systems and features designed to maximise natural lighting and ventilation.
