KAMPALA – The managing director of the Uganda Development Bank (UDB), Dr Patricia Ojangole, says a significant number of businesses are not prepared to receive loans, despite capital being readily available.
Dr Ojangole, who was recently named the African Banker of the Year, made the comments during an interview, highlighting what she called a “demand-side issue” in the country’s economy.
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“If a business comes to UDB and it is not bankable, we do not send them away,” she said. “Instead, we do a lot of advisory work.”
The bank is actively working to address this gap through its Business Accelerator for Entrepreneurship (BASE) programme, which helps small and medium-sized enterprises (SMEs) become more attractive to investors.
Dr Ojangole explained that the UDB’s strategy has shifted to a “demand generation approach.” This means the bank no longer just waits for ready projects but actively works with business promoters to create viable project pipelines.
The bank’s total assets have grown to 1.78 trillion Ugandan shillings, with a loan book of 1.53 trillion shillings, a development she attributed to funding from the Ugandan government and other bilateral and multilateral partners.
The UDB focuses its lending on key sectors outlined in the National Development Plan, including agriculture, manufacturing, infrastructure, and services such as tourism and health.
Addressing concerns about lengthy loan approval times, Dr Ojangole dismissed the notion of delays. She explained that for complex projects, the bank works with businesses from the conceptual stage to ensure all necessary plans and documentation are properly structured, a process she described as a necessary step to ensure a business’s viability.
