Uganda Development Bank

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Uganda Development Bank
Industry Finance
Founded 1972
Headquarters First Floor, Rwenzori Towers
6 Nakasero Road, Nakasero
Kampala, Uganda
Key people
Samuel Sejjaaka
Patricia Adongo Ojangole
Chief Executive Officer
Products Loans, Equity Partnerships, Financial Advisory Services, Management Services, Export/Import Finance
Revenue IncreaseAftertax:US$248,000 (UGX:621 million) (2013)
Total assets US$58.4 million (UGX:146.9 billion) (2013)
Owner Government of Uganda
Website Homepage

Uganda Development Bank (UDB) is a government-owned development bank in Uganda.


UDB began operating in 1972 and was the first development finance institution established by the Government of Uganda. The main objective of UDB is to promote and finance development in various sectors of the economy with particular emphasis on agriculture, industry, tourism, housing, and commerce. As of December 2013, UDB's total assets were valued at approximately US$58.4 million (UGX:146.9 billion), with shareholders equity of approximately US$41.9 million (UGX:105.6 billion) [1]

Mode of operation[edit]

To achieve its objective, UDB is empowered by law to provide financial assistance in the form of loans and equity participation. To finance its projects, UDB is empowered to borrow funds from both local and foreign sources, within the borrowing limits determined by the Ministry of Finance, Government of Uganda.


UDB was established in 1972 by government decree. The period between 1972 and 1979 was characterized by the extension of medium term loans to small-scale enterprises on a limited basis. The sourcing of funding was constrained by adverse economic conditions locally and by the inability to obtain International funding by the prevailing Ugandan authorities during that period.

The political leadership in Uganda changed in 1979, and UDB was then able to obtain large credits from external financiers, like the African Development Bank, the International Development Association, the European Investment Bank, EEC, OPEC and the Arab Bank for Economic Development in Africa. With these funds, UDB’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.[2]


UDB obtains two types of funds:

  1. Trust funds from the government on loan to UDB at specified rates and repayment periods.
  2. Direct borrowing from multinational financial institutions but guaranteed by the Government of Uganda.

UDB is required to finance projects that are technically feasible, commercially and economically viable and socially desirable. Priority is given to:

  • Existing projects requiring small assistance to improve their operations
  • Projects with a scope to maximize the country’s resources and adding value to the product(s)
  • Projects aiming to produce quality products at Internationally competitive prices targeted for export
  • Projects creating new job opportunities for the local people.

A significant portion of the financing made by UDB is directed towards projects in the agricultural sector. Financing can be in the form of loans which are repayable in installments over a pre-determined period of time or in the form of equity participation with specific criteria set out on how the equity is shared between UDB and the other investors in the project.

The future[edit]

As of September 2013, the bank has 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 UGX100 billion (US$40 million), to UGX500 billion (US$200 million).[3][4]

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 UDB is working with, include the following: (a) the Kuwait Fund, (b) Afrexim Bank, (c) Arab Bank for Economic Development in Africa and (d) Islamic Development Bank.[5]

Products and services[edit]

These include: (a) project term loans (b) trade financing (c) investment in equity (d) project advisory services and (e) project management.

Board of directors[edit]

As of December 2013, the following constituted the board of directors of the bank:[6]


The following people constituted the senior management team at Uganda Development Bank:[7]

  • Milly Kasozi – Director, Human Resource & Administration
  • Daniel Kagwa - Director of Finance
  • Patricia Adongo Ojangole – Chief Executive Officer (CEO)
  • Andrew Muluubya- Director, Management Information Systems
  • Dorothy Ochola – Bank Secretary
  • Patrick Oketa – Director, Development Finance
  • Daphne Twinomucunguzi – Acting Chief, Internal Audit.


A recent audit by Uganda's auditor general has revealed disturbing financial impropriety by board members and senior managers at UDB, leading to financial loss. Both the board and management team involved in the fraud have been terminated and the investigation continues as of June 2014.[8][9][10][11]

See also[edit]


  1. ^ UDB, . "December 2013 Annual Financial Report". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  2. ^ UDB, . "Profile of Uganda Development Bank". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  3. ^ Otage, Stephen (2 October 2013). "Bank Lowers Interest Rates On Agriculture Loans". Daily Monitor (Kampala). Retrieved 22 November 2014. 
  4. ^ Tajuba, Paul (23 February 2015). "UDB Gets Shs500 Billion To Boost Capital Base". Daily Monitor (Kampala). Retrieved 1 May 2015. 
  5. ^ Kulabako, Faridah (9 July 2013). "Uganda Development Bank to Shift Its Market Interest". Daily Monitor (Kampala). Retrieved 27 June 2014. 
  6. ^ UDB, . (31 December 2014). "Uganda Development Bank Board of Directors". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  7. ^ UDB, . "Uganda Development Bank Management Team". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  8. ^ Mukiibi Sserunjogi, Eriasa (5 January 2013). "Audit Reveals Further Rot In Uganda Development Bank". Daily Monitor (Kampala). Retrieved 29 June 2014. 
  9. ^ Kakaire, Sulaiman (19 November 2013). "Uganda: Development Bank Faces Probe Over Sh20 Billion Loan". The Observer (Uganda) via Retrieved 29 June 2014. 
  10. ^ Katunzi, Pius Muteekani (19 April 2014). "Uganda: UDBL - How The Bad Guys Derailed The IGG". The Observer (Uganda) via Retrieved 29 June 2014. 
  11. ^ Wesaka, Anthony (30 June 2014). "UDB’s Ojangole Acquitted". Daily Monitor (Kampala). Retrieved 30 June 2014. 

External links[edit]