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UDB registers UGX 50 billion profits

Peter 24th Jul, 2024 Financial Services Pedson Mumbere
UDB registers UGX 50 billion profits

The Uganda Development Bank (UDB) has announced its 2023 annual performance report, highlighting its continued role in fostering economic resilience and sustainable growth in Uganda.

According to the report, the Bank realized a net profit of UGX 49.8 billion in 2023, a 17% increase from UGX 42.6 billion in 2022.

At the release of the performance report, the Minister of Finance and Economic Development, Matia Kasaija, stated that the government will ensure the Bank advances its agenda and deepens financial inclusion for SMEs.

  • "The Government has played a pivotal role in significantly contributing to the country's socio-economic transformation. In 2024 and beyond, the focus will be on mobilizing adequate resources to enable UDB to continue to deliver its mandate. The Bank will also undertake initiatives aimed at accelerating productivity, import replacement, and export promotion. Additionally, the Bank will advance its holistic sustainability agenda and deepen financial inclusion for SMEs, women, and youth," he said.

In 2023, the Bank approved funding of UGX 692 billion in new loans to over 200 enterprises in 63 districts nationwide.

"These projects, upon full implementation, are expected to create 18,558 new jobs and generate an output value of UGX 11.4 trillion, from which UGX 616 billion will be generated as tax revenue to the Government, and UGX 3.34 trillion in foreign exchange earnings," the Bank's Annual Report reads in part.

  • UDB's net loans also expanded to UGX 1.47 trillion in 2023, reflecting robust support to the private sector. The Bank strengthened its commitment to providing affordable and patient capital, achieving significant milestones amidst economic challenges.

"The results, released during the Annual General Meeting held at the Ministry of Finance, Planning, and Economic Development, reflect a sustained effort to facilitate economic recovery," said UDB Managing Director, Patricia Ojangole.

Conversely, earnings from locally produced exports improved by 47%, from UGX 649 billion to UGX 953 billion, due to increased production, particularly in the manufacturing and agro-processing sectors. Notably, up to 66% of all raw materials utilized in enterprises funded by the Bank were locally produced during the year.

"Prioritizing social inclusion in the Bank's development agenda is fundamental in fostering a resilient, inclusive, and sustainable society where no one is left behind. To the Bank, social inclusion symbolizes diversity and social cohesion, unlocking the full potential of individuals and societal segments where everyone can fully participate, contribute, and thrive," said Ojangole.

However, despite the Bank's successes, some Ugandans feel the loan requirements remain stringent, hindering access for smaller businesses.

  • Herbert Sengendo and Iryn Asiimwe, both business people in Kikubo, expressed concerns that UDB targets high-end customers only, which they said was unfair since all business owners pay taxes and should benefit equally.
  • "First look at their requirements, they do not favour us as small business owners. Why are they targeting big business owners only? Are we not taxpayers?" they asked.

In response, Minister Kasaija advised smaller entrepreneurs to take advantage of the Parish Development Model and Emyooga, while assuring them that the Bank is formulating means of incorporating them as well.

In his conclusion, the Chairman of the Board of Directors of Uganda Development Bank, Felix Okoboi, pledged the Bank's continued commitment to catalyzing socio-economic development within the country.

"UDB remains resolute in driving inclusive economic growth through innovative financing solutions and leveraging strategic partnerships, reinforcing its role as a catalyst for sustainable development in Uganda," Okoboi said.

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