Government has so far capitalised Uganda Development Bank (UDB) to the tune of Shs 2.2 trillion, including the additional Shs 442.2 billion capital provided in FY 2026/27, strengthening the Bank’s capacity to provide affordable, long-term financing for industrialisation, export growth, value addition and other strategic investments.
Finance Minister Henry Musasizi said the strengthened capital base will enable UDB to play a greater catalytic role in supporting investments aligned with Uganda’s development priorities, including agro-industrialisation, tourism, mineral-based industrialisation, science, technology and innovation.
Musasizi made the remarks today while officiating at the commissioning of UDB Tower, the Bank’s renovated 14-storey head office on Plot 22, Hannington Road, Kampala.
He said UDB occupies a critical position in Uganda’s development architecture by connecting Government priorities with the capital required to translate 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,” Musasizi said.
He said strengthening UDB’s institutional capacity would enable the Bank to support investments that expand Uganda’s productive base, create jobs, increase exports and raise household incomes.
Musasizi said the Bank’s mandate is aligned with Government’s Tenfold Growth Strategy, which targets transforming Uganda into a $500 billion economy by 2040, noting that achieving this ambition will require substantial mobilisation of domestic and private capital as well as foreign direct investment.
The Minister also urged UDB to deepen innovative financing through private equity, structured and project finance, corporate bonds, blended financing and public-private partnerships, while using de-risking and credit-enhancement mechanisms to attract more private capital.
UDB Board Chairman Geoffrey Kihuguru said the new headquarters should be viewed as part of the Bank’s long-term institutional investment rather than simply a physical facility.
He said UDB must continue building the institutional strength, governance, talent and infrastructure required to mobilise capital, support productive enterprises and catalyse investments of national significance.
“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,” he said.
UDB Managing Director Dr. Patricia Ojangole said the commissioning marks an important milestone in the Bank’s institutional transformation, bringing its people and operations together in a modern facility designed to improve collaboration, innovation and service delivery.
UDB’s 2025 Development Impact Report demonstrates the economic contribution of the Bank’s financing. The 525 enterprises assessed generated Shs 6.261 trillion in gross revenue, Shs 1.158 trillion in net profit after tax and Shs 387 billion in tax contributions.
The enterprises also created and maintained 69,202 jobs, including 50,221 jobs for youth and 27,641 for women, while generating Shs 1.847 trillion in foreign exchange earnings.
The Bank currently has 904 direct customers and 112,399 total customers across 114 districts, with operations covering three regions. Plans are underway to extend coverage to two additional regions this financial year.
UDB Tower, covering approximately 7,806 square metres across 14 floors, incorporates modern workspaces, customer-service facilities, meeting and training rooms, an innovation room, Boardroom and modern ICT infrastructure. The building also has a 25-kilowatt solar-power system, smart energy-management systems and features designed to maximise natural lighting and ventilation.
