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Kampala, Uganda | THE INDEPENDENT | Uganda Development Bank (UDB) has reported a strong 2025 performance, with increased financing supporting private sector expansion, job creation and growth in productive capacity.
The development finance institution disbursed Shs502.2 billion during the year, a 29% increase from 2024, while total assets rose 27% to Shs2.26 trillion from Shs1.78 trillion.
UDB’s net loans and advances grew to Shs1.63 trillion, while post-tax profit increased 9.7% to Shs63.4 billion.
The results were announced on Aug. 13 during the bank’s Annual General Meeting at the Ministry of Finance, Planning and Economic Development.
UDB Managing Director Patricia Ojangole said the performance strengthens the bank’s ability to provide long-term capital to businesses capable of generating employment, increasing exports and expanding domestic production.
“Development finance delivers its greatest value when it unlocks opportunities that commercial markets alone cannot provide,” Ojangole said. “Every investment we make is intended to strengthen productive enterprises, create decent jobs, expand value addition and improve incomes for Ugandans.”
UDB approved Shs518.4 billion in new funding for 120 projects across the country, supporting businesses to expand production, modernise operations and adopt new technologies.
The bank’s active customer base grew to 689 enterprises operating in 105 districts, while the number of direct borrowers increased to 112,392. Nearly two- thirds of its financing went to agriculture, agro-industrialisation and manufacturing.
Jobs impact
Enterprises financed by UDB created and sustained 69,202 jobs in 2025, a 24.6% increase and the bank’s strongest annual employment impact in recent years.
The supported enterprises generated annual production worth Shs6.26 trillion and profits exceeding Shs1.16 trillion, strengthening their capacity to reinvest and expand.
Their tax contributions rose 22.5% to Shs387 billion, while foreign exchange earnings increased to Shs1.84 trillion from Shs1.11 trillion.
UDB said the figures demonstrate the wider economic impact of development finance through increased production, domestic value addition, employment and government revenue.
The bank also reported stronger capitalisation, with total equity rising 24.8% to Shs1.89 trillion, supported by increased Government capitalisation and development partner financing.
Stronger standing
UDB’s performance also attracted recognition from international rating agencies and development finance institutions.
The bank secured a ‘AA+ (Uga)’ National Rating and a ‘B’ Long-Term Foreign Currency Issuer Default Rating from Fitch Ratings. It also maintained an ‘A+’ rating from the Association of African Development Finance Institutions.
Ojangole was named Banker of the Year at the Africa Banker Awards 2025, while UDB received the Outstanding Business Sustainability Achievement Award at the 2025 Karlsruhe Sustainable Finance Awards in Germany.
The bank also retained Level 5 certification under the Sustainability Standards and Certification Initiative Version 2.
During the year, UDB hosted the inaugural Uganda Development Finance Summit, bringing together more than 500 policymakers, industry leaders and development partners.
It also launched the Reshaping Industry for Sustainable Economy initiative, aimed at converting development challenges into viable, investment-ready projects.
Finance Minister Henry Musasizi commended UDB for translating Government capital into measurable economic outcomes through investments in industry, value addition and private sector development.
UDB Chairman Geoffrey Kihuguru said the bank would continue to focus on prudent asset deployment and operational efficiency to ensure long-term sustainability.
The performance came as Uganda’s economy expanded by 6.3%, while inflation declined to 3.3%, providing a more favourable environment for investment and business growth.
