Uganda Development Bank (UDB) supported investments have created 41,338 jobs, according to the bank’s 2021 Direct Impact Report.
The report, which was commissioned by UDB indicates that during 2021 supported investments created 41,338 jobs compared to 24,013 in 2020 while foreign exchange earnings from such investments grew by 131 per cent.
Financed projects, the report noted, grew by 72 percent, with close to Shs430b has been injected in nearly 200 local companies engaged in agro-processing, manufacturing, infrastructure, and tourism sectors.
Dr Francis Mwesigye, the UDB chief economist, said this year alone, another Shs600b will be invested into high impact sectors of the economy.
“This Direct Impact Report reflects UDB’s work and coverage through job creation, output value, forex, and tax generated by enterprises supported by the bank,” Dr Mwesigye said, while quoting the report.
He also indicated that in the intervening period, the bank’s investment created an output value of Shs2.445 trillion, which contributed Shs84b in taxes to government, and forex earnings of Shs405b.
The share of created jobs was highest in agro-processing at 41 percent, followed by primary agriculture at 30 percent.
Manufacturing, infrastructure, and tourism contributed 17 percent, 6 percent, and 3 percent respectively while other sectors including health and education accounted for 4 per cent.
The report also noted that the share of foreign exchange earnings among the enterprises was highest in the agro-processing sector at 50 percent, followed by manufacturing at 33 percent. Health contributed 14 percent.
During the period, according to the report, manufacturing, which contributed 39 percent, posted the largest share of profits among supported sectors followed by agro-processing at 32 percent, and 21 percent from primary agriculture.
The tourism and health sectors contributed 4 percent and 2 percent, respectively.
However, Ms Sumin Namaganda, the UDB senior manager corporate affairs, said despite the need to support small and medium businesses, informality continues to stick out, noting that the bank has developed an in-house programme that seeks to accelerate business to support enterprises to deal with deficiencies such as poor record keeping as well as enhancing management, among small and medium enterprises.
UBD supports projects within the private sector that demonstrate the potential to deliver high socio-economic value, in terms of job creation, improved output, tax contribution and foreign exchange generation, among other outcomes.