# Uganda Development Bank Limited

The Uganda Development Bank Limited (UDBL) is a government-owned development financial institution in Uganda.

## Overview

UDBL which began operating in 1972, was the first development finance institution established by the government of Uganda. The main objective of UDBL is to promote and finance development in various sectors of the economy with particular emphasis on agriculture, industry, tourism, housing, and commerce.
In June 2018, the government negotiated for a $20 million (USh 76 billion) loan from the African Development Bank to capitalize UDBL, primarily to lend to the agricultural sector for mechanization and value addition. As of December 2024, the bank's loan portfolio was valued at USh 1.67 trillion (US$457.2 million), with total assets of USh 1.71 trillion (US$468.1 million).

## History

UBDL was established in 1972. The political leadership in Uganda changed in 1979, and UDBL was then able to obtain large credits from external financiers, like the African Development Bank, the International Development Association, the European Investment Bank, the European Economic Community, the Organization of Petroleum Exporting Countries, and the Arab Bank for Economic Development in Africa (Banque Arabe pour le Développement Economique en Afrique) (BADEA). With these funds, UDBL's focus shifted to financing medium and long-term projects in agriculture, manufacturing, and tourism. Between 1997 and 2001, the bank was restructured, recapitalized, and re-organized as a limited liability company, wholly owned by the government of Uganda.

## Future plans

As of September 2013, the bank had re-organized and repositioned itself to play a larger and more visible role in Uganda's development finance. It has developed a medium-term recapitalization plan (2013-2017) that will increase shareholder's equity from the current USh 100 billion (US$40 million), to USh 500 billion (US$200 million).
Its growth plan has been streamlined to harmonize with Uganda's National Development Plan (NDP) and with Vision 2040. Vision 2040 aims to transform Ugandan society from a peasant population to a modern and prosperous country by the year 2040. Some of the development partners that UDBL is working with include the Kuwait Fund, the African Export-Import Bank, BADEA, and the Islamic Development Bank.
In June 2020, the Uganda Ministry of Finance, Planning and Economic Development, announced its intention of further increase its share capital in UDB from USh 500 billion (US$136 million) to USh 2 trillion (US$545 million). This is part of the bank's five-year strategic plan 2020–2024.
In March 2024, management revealed plans to establish five regional offices to take services closer to the bank's clients. The location of the regional offices include the following:
* Arua office: Arua City
* Gulu office: Gulu City (Established in 2023)
* Hoima office: Hoima City
* Mbale office: Mbale City
* Mbarara office: Mbarara City

## Services

UDB's services include short-term loans, medium term loans, long-term loans, equity investments, trade finance loans, and bank guarantees.

## Rating

In April 2024, Fitch Ratings assigned UDBL a National Long-term Rating of ‘AAA (uga)’ with a Stable Outlook, "the highest attainable on Uganda’s national scale".

## Board of directors

As of December 2022, UDBL's board of directors consisted of: 1. Felix Okoboi: Chairman 2. John Byaruhanga 3. Frank Tumuheirwe: 4. Nimrod Waniala 5. Henry Balwanyi Magino 6. Silvia Angey Ufoyuru 7. Patricia Ojangole - Managing Director.

## Management

As of August 2017, UDB's management team was: 1. Patricia Ojangole: Managing Director 2. Joshua Allan Mwesiga: Director, Strategy & Corporate Affairs 3. Denis Owens Ochieng: Director of Finance & Business Operations 4. Mahamoud Andama: Director Investment 5. Stephen Hamya: Chief Internal Auditor 6. Sophie Nakandi: Bank Secretary/Head Legal.

## Awards

In May 2024, UDBL was named "The Regional Bank of The Year - East Africa" at the 18th African Bankers Awards, at a ceremony in Nairobi, Kenya. At the same ceremony, UDBL won the Silver Award (A+ Rating) in the category of Development Finance Institutions for diligently following the guidelines of the Association of African Development Finance Institutions (AADFI).

## Controversy

According to a 2013 published report, an audit by Uganda's auditor general revealed financial impropriety by board members and senior managers at UDBL, leading to financial loss. Both the board and management team involved in the fraud were terminated and the investigation continued as of June 2014.