The Uganda Development Bank Ltd. (UDB) has announced its financial results for the year 2024, highlighting its growing role in supporting Uganda’s economic development. At its annual general meeting held at the Ministry of Finance, Planning, and Economic Development in Kampala, UDB reported that its total assets grew by 7% to UGX 1.78 trillion. Net loans and advances also rose by 9%, reaching UGX 1.53 trillion. The bank posted a post-tax profit of UGX 57.8 billion in 2024, compared to UGX 49.8 billion in 2023. This 16% increase was attributed to careful investment strategies and efficient cost management. Patricia Ojangole, the Managing Director of UDB, said the bank’s operations in 2024 focused on financing projects that align with national priorities. “We remained focused on advancing the Government’s development agenda through financial support to enterprises in key growth areas,†she said. During the year, UDB disbursed UGX388 billion to new projects across the country, was supported by an increased capital base, which included UGX 80.7 billion in government contributions and UGX 437 billion collected through loan repayments. These inflows brought the bank’s total capitalization to UGX 1.46 trillion, further strengthening its ability to finance development projects. UDB’s financing had a notable effect on employment. A total of 434 enterprises supported by the bank either created or retained 55,553 jobs in 2024, which represents a 7.2% rise from the previous year. Of these jobs, 59.9% went to young people and 31.3% to women. Looking ahead, the bank has already approved UGX 454 billion in new loans for over 170 enterprises operating in 67 districts. These loans are expected to create an additional 17,832 jobs, generate UGX 9.7 trillion in business output, UGX 1.8 trillion in foreign exchange earnings, UGX 1.7 trillion in profits, and UGX 455 billion in tax revenue. The industrial sector received the largest share of UDB’s financing, taking up 50% of the total disbursements. Within this sector, agro-industrialization and manufacturing attracted significant funding. The combined output from enterprises financed by UDB rose by 3.2% to UGX 6.05 trillion, while their tax contributions grew to UGX 316 billion. The bank maintained a cost-to-income ratio of 31% throughout the year. Its return on assets stood at 3.26%, and return on equity rose slightly to 3.89%, reflecting a steady performance and consistent value delivery. Finance Minister Matia Kasaija commended UDB for aligning its activities with the goals of Uganda’s National Development Plan and Vision 2040. He urged the bank to extend its support to more businesses, particularly those that have the potential to create employment. “UDB’s interventions are well aligned with the government’s strategic development objectives, and I encourage them to continue expanding their reach,†Kasaija said. In addition to lending, UDB undertook several initiatives to support business growth and entrepreneurship. The Business Accelerator for Successful Entrepreneurs (BASE) program trained 450 enterprises and incubated 71 businesses. The bank also invested UGX 5.1 billion in project preparation and supported over 42,000 households and small businesses through its Hybrid Electricity Connections Program, aimed at improving energy access. In 2024, UDB received several accolades in recognition of its work. It was named Regional Bank of the Year – East Africa at the African Banker Awards. It also retained its title as Sustainability Leader of the Year at the Karlsruhe Sustainability Awards for the fourth year in a row. Additionally, Fitch Ratings assigned UDB a National Long-Term Rating of ‘AA+ (Uga)’ with a Stable Outlook, while the Association of African Development Finance Institutions gave the bank an AA rating. These developments show UDB’s continued role in financing growth and supporting Uganda’s long-term development goals.
