KAMPALA, Uganda — Enterprises supported by the Uganda Development Bank Ltd. (UDB) created or maintained 55,553 jobs in 2024, a 7.2% increase from the previous year.
UDB announced the employment figures and other financial results Wednesday at its annual general meeting at the Ministry of Finance, Planning, and Economic Development in Kampala.
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The jobs were generated by 434 UDB-backed businesses.
UDB reported a post-tax profit of UGX 57.8 billion, a 16% increase from UGX 49.8 billion in 2023. Total assets grew 7% to UGX 1.78 trillion from UGX 1.67 trillion. Net loans and advances increased 9% to UGX 1.53 trillion from UGX 1.47 trillion.
Managing Director Dr. Patricia Ojangole said the bank’s growth stemmed from strategic investments and its focus on interest-earning assets.
“Through 2024, UDB remained a committed partner in advancing the Government’s economic development agenda, providing targeted financial support to qualifying enterprises and enabling productive investments across priority growth sectors,” Ojangole said. “UDB has made investments in boosting agriculture and manufacturing, whilst also unlocking and improving opportunities in the services sector.”
UDB disbursed UGX 388 billion in new funding for projects nationwide in 2024. It also reinvested UGX 437 billion from loan repayments and received UGX 80.7 billion in additional capital from the government. This capital injection strengthened cumulative capitalization from UGX 1.32 trillion to UGX 1.46 trillion.
The bank approved UGX 454 billion in new loans for more than 170 enterprises across 67 districts. These investments are projected to create 17,832 new jobs, generate UGX 9.7 trillion in additional output, UGX 1.8 trillion in foreign exchange earnings, UGX 1.7 trillion in profits and contribute UGX 455 billion in tax to the government.
As of 2024, UDB supported 770 active projects spanning 103 districts. The industrial sector remained dominant in the bank’s portfolio, accounting for 50% of its total investments. Of the UGX 822 billion allocated to industrial activities, 46.8% went to agro-industrialization, 50% to manufacturing, and 3.2% to mineral-based industries.
Of the jobs supported, 59.9% were filled by youth and 31.3% by women. The annual output of enterprises financed by UDB increased 3.2% to UGX 6.05 trillion from UGX 5.86 trillion in 2023. Tax contributions from these businesses also improved to UGX 316 billion from UGX 236 billion in 2023. UDB-supported enterprises reported more than UGX 1 trillion in profitability, exceeding UGX 869 billion in 2023, and realized the equivalent of UGX 1.1 trillion in foreign exchange earnings, a 17% increase from UGX 953 billion in 2023.
UDB maintained a stable cost-to-income ratio (excluding impairment) at 31% in 2024. The bank’s return on assets rose to 3.26% from 3.13% in 2023. Return on equity improved to 3.89% from 3.82% in 2023.
“As the Bank positions itself for greater impact, it will focus on maximising resource efficiency across financial, human, technological, and institutional capacities,” Ojangole said. “Additionally, the Bank will actively explore innovative and diversified funding avenues to scale its interventions and amplify development outcomes, whilst assuring long-term value creation for its stakeholders.”
The bank also implemented other initiatives, including the Business Accelerator for Successful Entrepreneurs (BASE), which trained 450 entities and incubated 71 businesses. Its Project Preparation offering committed UGX 5.1 billion. The Hybrid Electricity Connections Program benefited more than 42,000 households and small businesses, and the Ugandan Contractors Funding Initiative provided capital for local contractors.
In 2024, UDB received several recognitions. It was named the 2024 Regional Bank of the Year – East Africa at the African Banker Awards. The bank and its Managing Director were named Sustainability Leader of the Year at the Karlsruhe Sustainability Awards in Germany for the fourth consecutive year. Fitch Ratings assigned UDB an ‘AA+ (Uga)’ National Long-term Rating with a Stable Outlook, and a ‘B+’ Long-Term Issuer Default Rating (IDR) with a negative outlook, reflecting Uganda’s sovereign rating. UDB also earned an AA rating from the Association of African Development Finance Institutions (AADFI) and received Level 5 certification under the Sustainability Standards and Certification Initiative (SSCI) Version 2.
Minister of Finance, Planning, and Economic Development Matia Kasaija lauded the bank for its contributions to the National Development Plan and Vision 2040.
“I am pleased that UDB’s 2024 interventions are aligned with the strategic objectives outlined in the country’s national development plan,” Kasaija said. “An efficient national development financing institution, such as UDB, is critical in realizing our development goals as a country. Through UDB, the government continues to support private businesses by providing long-term and patient capital.”
Mr. Geoffrey Kihuguru, chairman of the UDB Board of Directors, reiterated the bank’s commitment to ensuring long-term sustainability through prudent asset management and operational efficiency.
