UDB secures $30 million ICD facility to drive private sector growth

Kampala, Uganda | THE INDEPENDENT | Uganda Development Bank Limited (UDBL) has secured a USD 30 million financing facility from the Islamic Corporation for the Development of the Private Sector (ICD), part of the Islamic Development Bank Group.

The facility marks ICD’s first Line of Finance transaction in Uganda and the wider East African region, underscoring the institution’s strategy to support private sector expansion in Sub-Saharan Africa.

Structured as a long-term commodity Murabaha, the funding aims to provide local small and medium enterprises (SMEs) with access to medium- and long-term capital for productive investment. Key sectors poised to benefit include agribusiness, education, healthcare, manufacturing, and investment in fixed assets such as land, buildings, machinery, and equipment.

Analysts note that the transaction could stimulate job creation, bolster industrial capacity, and enhance foreign exchange earnings. It also signals potential for further collaboration between ICD and Ugandan financial institutions, reinforcing the push toward inclusive and resilient private sector development across the country.