Government has raised its capital investment in Uganda Development Bank (UDB) to Shs2.2 trillion, giving the lender more funds to support businesses, industrial growth and exports.
The total includes Shs442.2 billion provided in the 2026/27 financial year to expand access to affordable, long-term financing.
Minister Henry Musasizi announced the figures on October 7, 2026, while commissioning UDB Tower, the bank’s renovated 14-storey headquarters on Hannington Road in Kampala.
He said the funding would support agro-industrialisation, tourism, mineral processing, science, technology and innovation. These investments, he added, should create jobs, grow exports and increase household incomes.
“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 described UDB as a link between government’s development plans and the financing businesses need to implement them.
Musasizi said the bank would help advance government’s Tenfold Growth Strategy, which seeks to expand Uganda’s economy to $500 billion by 2040. Achieving that goal would require more domestic savings, private capital and foreign direct investment.
He urged UDB to widen its financing options through private equity, corporate bonds, project finance and public-private partnerships. He also called for measures that reduce investment risks and encourage private investors to commit funds.
UDB board chairman Geoffrey Kihuguru said the headquarters formed part of a wider effort to strengthen the institution. He called for continued investment in governance, staff and infrastructure to help the bank finance enterprises and major national projects.
“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.
Managing director Dr Patricia Ojangole said bringing staff and operations into one facility would improve teamwork and customer service.
The bank’s 2025 Development Impact Report assessed 525 enterprises supported by its financing. They recorded Shs6.261 trillion in gross revenue, Shs1.158 trillion in profit after tax and Shs387 billion in tax contributions.
The enterprises created and maintained 69,202 jobs. These included 50,221 jobs for young people and 27,641 for women. They also generated Shs1.847 trillion in foreign exchange earnings.
UDB reports 904 direct customers and a total customer reach of 112,399 across 114 districts. It plans to expand from three regions to two additional regions this financial year.
The renovated headquarters includes customer service areas, training rooms and an innovation room. A 25-kilowatt solar system and energy management technology will support its operations.
