KAMPALA, Uganda — The Uganda Development Bank (UDB) has received a significant capital injection of 1 trillion Ugandan shillings in the new 2025-26 national budget, bringing its total capitalization to 1.5 trillion shillings. The move underscores the government’s intensified push for industrialization, job creation and increased productivity across the country.
Finance Minister Matia Kasaija, delivering the budget speech Thursday at Kololo Ceremonial Grounds, emphasized the UDB’s central role in Uganda’s economic transformation agenda.
“UDB has supported businesses in commercial agriculture, value addition, manufacturing, tourism, education, health, and construction. The additional funding will scale up this impact,” Kasaija said.
As of December 2024, the UDB had disbursed 2.45 trillion shillings to 607 businesses across strategic sectors. The bank reports that its interventions have so far created 55,553 jobs, generated 20 trillion shillings in output value, contributed 944.2 billion shillings in taxes, earned Uganda 3.3 trillion shillings in foreign exchange and supported businesses in earning 3.15 trillion shillings in profits.
The bank has also launched tailored programs for small and medium-sized enterprises (SMEs), youth and women-owned enterprises, including business incubation and development services. The UDB is expanding its regional footprint, supporting enterprises in 96 districts across Uganda’s sub-regions.
In related efforts to boost grassroots incomes, the government has injected 100 billion shillings into the Emyooga Programme, bringing its total investment to 660 billion shillings. Emyooga has benefited 2.4 million Ugandans and created 471,000 jobs in various trades.
“Emyooga has kick-started new local economies, especially in urban and peri-urban areas,” Kasaija said, adding that beneficiaries will now receive certification under the new TVET Act, recognizing them as professionals.
Additionally, the Small Business Recovery Fund (SBRF), established during the COVID-19 pandemic, has supported 3,496 MSMEs, helping to save over 26,000 jobs. Kasaija reaffirmed the government’s commitment to building economic resilience for small enterprises.
Overall, the Minister announced that 2.43 trillion shillings has been earmarked for wealth creation programs in the 2025-26 fiscal year. This includes 1.059 trillion shillings for the Parish Development Model (PDM), 1 trillion shillings for UDB, 100 billion shillings for Emyooga, 187.1 billion shillings for Uganda Development Corporation (UDC) and 50 billion shillings for the Agricultural Credit Facility. Other allocations include 231.3 billion shillings for GROW (for women enterprises), 275.1 billion shillings for INVITE (industrial empowerment), 58.5 billion shillings for Presidential Zonal Hubs and youth skilling, and 48.5 billion shillings for Microfinance Support.
With these allocations, the government aims to monetize the economy, empower local enterprises and drive inclusive growth across Uganda.
