UDB disburses Shs242 billion to support growth, recovery

Saturday January 23 2021
fin02pix

UDB was capitalised with close to Shs1 trillion in addition to Shs455b additional capital. PHOTO/FILE.

By MARTIN LUTHER OKETCH

Uganda Development Bank disbursed Shs242b to vital sectors of the economy in 2020 seeking to support economic recovery and long term development.  

At least Shs192b was disbursed to support primary agriculture, agro-industrialisation and manufacturing, which, UDB said, is consistent with the need to accelerate socio-economic development through sustainable financial interventions. 
Shs162b was disbursed to projects outside Kampala Metropolitan Area, while Shs351b worth of approved projects is yet to be disbursed. 

UDB has been at forefront of advancing cheap capital to businesses in which government is seeking to revitalise the economy that has suffered due to Covid-19. 

The bank was capitalised with close to  Shs1 trillion in addition to Shs455b additional capital.  
Last year, UDB undertook specific interventions in other sectors such as tourism, human capital development and infrastructure including ICT given that it was an unprecedented year due to the onset of Covid-19. 

At least, Kampala Metropolitan Area, which has the largest concentration of Uganda’s business, received the largest share of approved loans, which stood at Shs109.4b. 

Northern Uganda received Shs105.8b, representing 24 per cent of disbursed money, while western received Shs77.8b, which translated to 18 per cent. Eastern received Shs75.7b (17 per cent) while  central got Shs74.8b (17 per cent). 
UDB said it had made a decision to support tourism, noting it was a major source of foreign exchange earning for Uganda yet it had been ravaged by Covid-19.

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Disbursements 

Sector and value
Primary agric Shs151.9b
Agro-industry Shs134.8b
Manufacturing Shs100.8b
Tourism  Shs20.1b
Infrastructure  Shs11.8b
Health services 10.6b

moketch@ug.nationmedia.com

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