The Uganda Development Bank (UDB) has emerged as one of the most important drivers of sustainable growth in the country, yet it faces significant challenges common to development finance institutions (DFIs) across Africa. Speaking in Kigali during the TDB Group Annual General Meetings, Managing Director Patricia Ojangole reflected on the need for low-cost, patient capital and effective management to help DFIs fulfill their mandates.
UDB’s growth under Patricia Ojangole
Since her appointment in 2013, Ojangole has overseen remarkable expansion at UDB. The institution’s balance sheet grew from UGX 109bn ($31m) in 2013 to UGX 1.78tn ($500m) in 2024, while the loan book expanded to UGX 1.53tn ($430m). This growth has enabled UDB to support Uganda’s development agenda across critical sectors including agriculture, industry, and green finance.
Many institutions and industry peers have recognized her leadership. In 2025, they named Ojangole African Banker of the Year, and she made history as the first woman to chair the Association of African Development Finance Institutions (AADFI) since its founding in 1975.
Strategic partnerships: unlocking capital
According to Ojangole, forging strategic partnerships is essential for DFIs to access new sources of funding. She cited the recent $150m loan agreement with the Arab Bank for Economic Development in Africa (BADEA) as a case study.
- $100m will be channeled through UDB’s private sector window to finance agro-processing, infrastructure, manufacturing, health, and education.
- $50m is designated for financing MSMEs in priority sectors.
“National development banks understand national priorities,” Ojangole explained. “When we align with MDBs like BADEA, we achieve shared objectives and deliver impact at scale.”
Affordable, long-term financing
One of the biggest Uganda Development Bank challenges is the high cost of capital in the local market. Ojangole emphasized that UDB is committed to offering businesses affordable loans with longer repayment periods—something commercial banks rarely provide.
The government’s strong support has been key, including a UGX 1tn ($280m) capital injection in the 2025/26 budget. This enables UDB to provide financing for 10–25 years, helping private businesses invest in growth with greater certainty.
“The government is pursuing a private sector–led development model,” she said. “That’s why UDB must be capitalized to keep the cost of credit competitive.”
Empowering SMEs through capacity building
SMEs account for nearly 75% of Uganda’s private sector, making them vital to economic transformation. However, lack of management capacity often limits their ability to access credit.
To address this, UDB launched the Business Accelerator for Successful Entrepreneurship (BASE) program, which offers:
- Masterclasses and incubator sessions
- Hands-on mentorship
- Support in financial management
Ojangole noted that graduates of BASE are more likely to access financing and repay loans successfully. “Once entrepreneurs complete the programme, they walk into financial institutions with confidence,” she said.
Mobilizing domestic resources
With global funding sources constrained, Ojangole argues that Uganda must leverage domestic capital markets more effectively. The key lies in developing a pipeline of bankable projects that attract investment from pension funds and other local institutions.
“We identify and prepare projects properly so investors can see the returns,” she explained. “This strengthens capital markets and allows domestic resources to drive development.”
Looking ahead: Uganda Development Finance Summit
From September 1–2, 2025, Kampala will host the Uganda Development Finance Summit, where UDB will engage policymakers, DFIs, and private sector leaders. Ojangole sees this as an opportunity to strengthen collaboration and push forward Africa’s development agenda.
“National development banks exist to fill market gaps. We must share best practices, scale up capacity building, and mobilize both domestic and international resources,” she emphasized.
As Uganda prepares for a projected 6.1% GDP growth in 2025, supported by oil production and strong agricultural output, UDB will remain central to financing private sector growth. Yet, the Uganda Development Bank challenges remain clear: ensuring affordable capital, long-term financing, and building strong partnerships to deliver sustainable development.
