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Parliamentary Budget Committee Recommends Capitalization of UDB

 

FILE PHOTO: Amos Lugolobi

Kampala, Uganda | THE INDEPENDENT | The Parliamentary Budget Committee has recommended for the allocation of money to capitalise Uganda Development Bank-UDB.

UDB is a public enterprise wholly owned by the Government. It is a Development Finance Institution that is focused on accelerating socio-economic development through sustainable financial interventions in line with the country’s development priorities by supporting small scale and medium enterprises.

The bank focuses on manufacturing, infrastructure, agriculture, tourism and hospitality and human development.

Although Government had announced a 500 billion shillings capitalisation of the bank in 2015, between 2015 and 2017, UDB got a total of 39 and 50 billion in 2018.

The Budget Committee of Parliament chaired by Amos Lugolobi has recommended that being a national bank aimed at promoting and financing development in the various sectors of the economy more money should be allocated to capitalise UDB.

Lugolobi says this will enable many Ugandans have access to funds to supplement their agriculture and industrial initiatives.

“The Committee, however, recommended that more funds be provided to Uganda Development Bank in the Medium-term to provide the much-needed capital for investment in the Manufacturing and Agriculture Sector and at affordable rates” the committee report reads.

In 2017, UDB disbursed 95 Billion shillings and made a net profit of 8 billion shillings after tax.

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