Uganda Development Bank has launched its five-year strategic plan with a focus of supporting the productive sectors of the economy with long-term loans.
UDB’s new strategic plan was officially launched by the State Minister of privatisation and investment, Ms Evelyn Anite at the Finance Ministry offices last week.
Speaking during the launch, the chairman Board of Directors of UDB, Mr Felix Okoboi, said the bank will support financing of the agricultural sector, manufacturing/industrialisation mineral-based industries, health and education among others.
The government has decided to increase its share capital in UBD from Shs500 billion to Shs2 trillion to enable the bank to increase lending the productive sectors of the economy.
“Further capitalisation will go a long way is consolidating our mandate, particularly on availing long-term credit so much needed in strengthening agro industrialisation of Uganda,” noted Mr Okoboi said.
He added, “UDB will continue to strengthen its advisory aspects for SMEs to ensure efficient and smooth access as well impactful utilisation of credit lines.”
Mr Okoboi further observed that UDB will under the refined strategic direction 2020/2024, promote wholesale delivery of its financial services towards leading sectors of the economy.
Increased government capitalisation helped UDB post a 7 per cent growth in profitability to Shs10.14 billion in 2019, up from Shs9.49 billion in 2018.
The deputy secretary to the Treasury, Mr Patrick Ocailap, said the government has decided to reinvest all the Shs10.14 billion profit back into the bank’s operations to avail finances for the business communities in the country.
“The government is prioritising to improve the lives of people by increasing their household incomes through agro-processing. The government is focusing in import substitution, manufacturing and value addition,” he said.
The managing director of UDB, Ms Patricia Ojangole, said the annual turnover of firms that borrowed from UDB increased by 3 per cent from Shs1.738 trillion in 2018 to Shs1.795 trillion in 2019.
“The profitability of the enterprises supported increased by 10 per cent from Shs161 billion in 2018 to Shs177 billion in 2019. Foreign exchange earning to the economy increased by 17 per cent from $81 million in 2018 to $95 million in 2019,” she said.