Business 18 June 2026 Daily Monitor (Uganda)
Uganda Development Bank Capitalization Boosted to Shs1.6 Trillion
The Ugandan government is injecting an additional Shs442.2 billion into the Uganda Development Bank (UDB) for the 2026/27 financial year, bringing its total capitalization to Shs1.6 trillion. This strategic move aims to bridge the widening investment capital gap and support the nation's economic development goals. Source: https://www.monitor.co.ug/uganda/business/markets/govt-pushes-capitalisation-in-udb-to-shs1-6-trillion-5501606
The Ugandan government is significantly bolstering the Uganda Development Bank (UDB) by allocating an extra Shs442.2 billion in the upcoming 2026/27 financial year. This substantial capital injection will elevate UDB’s total capitalization to Shs1.6 trillion, reinforcing its capacity to finance critical development projects across the nation.
This move is considered a vital policy measure in response to the growing deficit in investment capital, which is hindering Uganda’s progress towards its next phase of development. The government is relying on UDB to provide accessible and long-term funding for both private and public sector investments.
Despite a modest 12.0 percent growth in private sector credit last year, reaching Shs28.6 trillion, it falls short of the 16.6 percent target set in the Third National Development Plan and lags behind regional economies. In parallel, UDB reported a robust 27 percent increase in its total assets, reaching Shs2.26 trillion by the end of 2025. The bank approved Shs518.4 billion in new funding that year, with a significant portion directed towards primary agriculture, agro-industrialization, and manufacturing.
UDB also provided Shs124.2 billion in working capital for local contractors involved in infrastructure, including co-financing the East African Crude Oil Pipeline (EACOP). Disbursements increased by 29 percent to Shs502.2 billion, and the bank expanded its reach to 689 clients across 105 districts. The institution’s gross loan portfolio grew to Shs1.77 trillion, with 60 percent invested in key sectors like agriculture and manufacturing. These enterprises, supported by UDB, created over 69,000 jobs in 2025, a 25 percent increase from the previous year, with a focus on inclusive growth for youth, women, and SMEs.
This capital enhancement aligns with UDB’s five-year strategy to expand its role in transaction structuring, advisory services, and development finance mobilization, positioning it as a key player in the government’s ambitious plan to grow the economy tenfold by 2040.
Source: Daily Monitor (Uganda)