The Ugandan government has capitalised the Uganda Development Bank (UDB) to a total of Shs 2.2 trillion, strengthening the development finance institution’s capacity to provide affordable, long-term financing for industrialisation, export growth, value addition and other strategic investments.

The total capitalisation includes an additional Shs 442.2 billion provided to UDB in the 2026/27 financial year.

Finance Minister Henry Musasizi said the increased capital base will enable UDB to play a greater role in financing investments aligned with Uganda’s development priorities, including agro-industrialisation, tourism, mineral-based industrialisation, science, technology and innovation.

Musasizi made the remarks while officiating at the commissioning of UDB Tower, the bank’s renovated 14-storey headquarters on Plot 22, Hannington Road in Kampala.

He said UDB occupies a critical position in Uganda’s development architecture by connecting government priorities with the capital needed to turn them into productive investments. “Uganda’s next phase of economic transformation requires strong institutions with the capacity to mobilise long-term capital and channel it towards productive investments,” Musasizi said.

According to the Minister, strengthening UDB’s institutional capacity will allow the bank to support investments that expand Uganda’s productive base, create jobs, increase exports and raise household incomes.

Musasizi said UDB’s mandate is aligned with the government’s Tenfold Growth Strategy, which targets transforming Uganda into a $500 billion economy by 2040.

He noted that achieving the target will require significant mobilisation of domestic and private capital, as well as foreign direct investment.

The Minister also urged UDB to expand innovative financing mechanisms, including private equity, structured and project finance, corporate bonds, blended financing and public-private partnerships.

He further called for the use of de-risking and credit-enhancement mechanisms to attract more private-sector capital into strategic investments.

UDB Board Chairman Geoffrey Kihuguru said the new headquarters should be viewed as a long-term institutional investment rather than simply a physical facility.

He said the bank must continue strengthening its governance, human resources, institutional capacity and infrastructure to mobilise capital, support productive enterprises and catalyse investments of national importance.

“Our responsibility is to build a development finance institution that is not only relevant to Uganda’s needs today, but one that has the capacity and resilience to serve generations to come,” Kihuguru said.

UDB Managing Director Dr Patricia Ojangole said the commissioning of the headquarters represents an important milestone in the bank’s institutional transformation.

She said the modern facility is designed to bring UDB’s people and operations together while improving collaboration, innovation and service delivery.

UDB’s 2025 Development Impact Report highlights the economic contribution of enterprises financed by the bank.

The report assessed 525 enterprises, which collectively generated Shs 6.261 trillion in gross revenue and Shs 1.158 trillion in net profit after tax.

The enterprises also contributed Shs 387 billion in taxes and generated Shs 1.847 trillion in foreign exchange earnings.

In employment, the businesses created and maintained 69,202 jobs, including 50,221 jobs for young people and 27,641 jobs for women.

UDB currently has 904 direct customers and 112,399 total customers across 114 districts. Its operations currently cover three regions, with plans underway to expand into two additional regions during the current financial year.

UDB Tower covers approximately 7,806 square metres across 14 floors.

The renovated headquarters includes modern workspaces, customer-service facilities, meeting and training rooms, an innovation room, a boardroom and modern information and communication technology infrastructure.

The building also features a 25-kilowatt solar-power system, smart energy-management systems, natural lighting and ventilation features designed to improve energy efficiency and the working environment.

The government’s increased capitalisation of UDB is expected to strengthen the bank’s role in providing long-term development finance to businesses and projects supporting Uganda’s industrialisation, value addition, exports and broader economic transformation.