Business
Kasaija Calls for UDB Expansion as Bank Reports UGX 57.8 Billion Profit in 2024
The Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija, has directed the Uganda Development Bank Ltd (UDB) to expand its footprint across the country in order to bring essential financial services closer to Ugandans and spur inclusive economic growth.
Speaking during the bank’s Annual General Meeting held on Wednesday at his office, Kasaija praised UDB for its pivotal role in national development and called for more branches to be established in underserved regions.
“As Uganda’s economy recovers from various shocks, more businesses need to be handheld,” Kasaija stated. “UDB must intensify its support to enterprises that create decent jobs and advance our goal of industrialisation.”
The minister commended UDB’s alignment with Uganda’s National Development Plan (NDP) and Vision 2040, noting that a strong, efficient development financing institution is vital for transforming the economy. “Through UDB, the government continues to provide long-term, patient capital to private sector players, enabling growth and resilience,” he added.
The Minister of Finance, Planning, and Economic Development, Hon. Matia Kasaija.
Strong Financial Performance in 2024
UDB’s Managing Director, Dr. Patricia Ojangole, unveiled the bank’s 2024 performance, reporting a 7% increase in total assets to UGX 1.78 trillion, up from UGX 1.67 trillion in 2023. The growth was driven by government capital injections and retained earnings.
Net loans and advances rose by 9% to UGX 1.53 trillion, with UGX 388 billion disbursed across 103 districts, supporting 770 active projects. The industrial sector led UDB’s portfolio, accounting for 50% of investments, mainly in agro-industrialisation and manufacturing.
Dr. Ojangole emphasised the bank’s commitment to innovation and impact. “Our role as Uganda’s national development finance institution requires not just financing but enabling transformation,” she said. “This is reflected in our initiatives such as the Business Accelerator for Successful Entrepreneurs (BASE), which trained 450 SMEs—many led by youth and women—in 2024.”
Additionally, UGX 5.1 billion was committed to the Project Preparation Offering, aimed at removing technical and financial bottlenecks. UDB also supported over 42,000 households and small businesses through the Hybrid Electricity Connections Program, while the Ugandan Contractors Funding Initiative extended affordable capital to local firms.
The bank’s investments yielded a 7.2% increase in employment creation, with 55,553 jobs created or maintained in 2024. Notably, 59.9% of the beneficiaries were youth, and 31.3% were women. The annual output from UDB-financed enterprises rose by 3.2% to UGX 6.05 trillion.
These businesses generated UGX 1 trillion in profits, UGX 316 billion in tax contributions, and UGX 1.1 trillion in foreign exchange earnings, representing a 17% growth over the previous year.
UDB’s efficiency also remained strong, with a stable cost-to-income ratio (excluding impairments) at 31%, return on assets at 3.26%, and return on equity at 3.89%. The bank posted a net profit of UGX 57.8 billion in 2024, a 16% increase from UGX 49.8 billion in 2023.
UDB’s performance did not go unnoticed. The bank was named 2024 Regional Bank of the Year – East Africa at the African Banker Awards and retained its Sustainability Leader of the Year title at the Karlsruhe Sustainability Awards for a fourth consecutive year.
UDB’s Managing Director, Dr. Patricia Ojangole
It also received an ‘AA+ (Uga)’ National Long-term Rating from Fitch Ratings with a Stable Outlook, and an ‘AA’ rating from the Association of African Development Finance Institutions (AADFI). Furthermore, UDB achieved Level 5 certification—the highest level—under the Sustainability Standards and Certification Initiative (SSCI) Version 2.
Geoffrey Kihuguru, Chairman of UDB’s Board of Directors, reaffirmed the bank’s long-term commitment to sustainability, asset growth, and operational excellence. “We are proud of our prudent approach, and we will continue to scale our interventions where impact is most needed,” he said.
In 2024 alone, UDB approved UGX 434 billion in new loans for over 170 enterprises across 67 districts. These investments are projected to generate UGX 6.7 trillion in output, UGX 1.7 trillion in profits, UGX 1 trillion in foreign exchange earnings, and UGX 455 billion in taxes, while creating an estimated 17,832 new jobs.
As Uganda charts its path toward a resilient and industrialised economy, the call from Minister Kasaija is clear: Uganda Development Bank must expand its reach and deepen its impact, bringing opportunity to every corner of the country.
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