UDB Invites Contractors to Apply for Shs150 Billion Support Fund

Uganda Development Bank (UDB) has reopened prequalification for its Shs150 billion Local Contractors Financing Initiative, a programme designed to help Ugandan firms access affordable financing for major infrastructure and development projects.

The bank said the second prequalification exercise follows strong demand from local contractors and seeks to expand the pool of firms eligible for financial and technical support.

The initiative supports government’s local content agenda by helping Ugandan companies take a larger share of value from public infrastructure investments.

Under the programme, eligible contractors can access concessionary working capital, asset and equipment financing, performance guarantees and other financial products offered on competitive terms.

Beneficiaries will also receive training in project management, financial management, corporate governance, contract administration and project programming.

UDB said the initiative responds to long-running challenges faced by local contractors, including limited access to affordable capital, weak equipment financing and capacity gaps that affect their ability to compete for large contracts.

According to the Private Sector Development Programme Annual Performance Report 2023/24, local suppliers won 63 per cent of public procurement awards, up from 48 per cent in the 2022/23 financial year. However, this remains below the national target of at least 75 per cent.

The report attributed the gap mainly to the limited capacity of local contractors to take part in major procurement opportunities.

UDB committed Shs150 billion to the initiative in 2023. It is implementing the programme in partnership with the Uganda Institution of Professional Engineers and the Uganda National Association of Building and Civil Engineering Contractors.

“Ugandan contractors are central to Uganda’s industrialisation and infrastructure development agenda. However, many firms continue to face financing and capacity constraints that limit their ability to compete for and complete large infrastructure contracts. Through this Initiative, UDB is providing both the financing and institutional support required to build stronger, more competitive Ugandan firms capable of delivering transformative projects and contributing to sustainable economic growth,” said Ms Sumin Namaganda, the Senior Manager for Corporate Affairs at UDB.

The initiative targets contractors in transport, energy, water and sanitation, agriculture, agro-processing, manufacturing, extractives, education, health, tourism, telecommunications, digital connectivity, creative industries, and oil and gas.

UDB said the programme aims to raise local content participation, create jobs, improve project delivery and support Uganda’s industrialisation agenda.

Since its launch, the bank has approved financing facilities worth Shs59.03 billion. Of this, Shs24.89 billion had been disbursed to qualifying contractors by March 2026.

The supported firms are implementing projects across key sectors, which UDB says shows the programme’s growing role in building contractor capacity and increasing local participation in national development projects.

UDB has urged eligible Ugandan contractors to submit Expressions of Interest for the current prequalification exercise.

The bank said detailed eligibility criteria, application requirements and submission guidelines are available at its head office and branches in Hoima, Gulu and Mbale.

Interested firms must collect prequalification documents by June 26, 2026. The deadline for submitting Expressions of Interest is July 3, 2026.