UDB posts strong 2025 performance

• The Bank disbursed UGX 502.2 billion to facilitate private sector growth in Uganda
• Total assets grew by 27% to UGX 2.26 trillion
• Net loans and advances rose by 6.6% to UGX 1.63 trillion
• Bank-supported enterprises created and maintained a total of 69,202 jobs, a rise of 24.6%

KAMPALA – Uganda Development Bank Ltd (UDB), the country’s national Development Finance Institution, today announced strong financial and development performance for 2025, demonstrating how strategic public investment is expanding productive enterprises, creating job and improving livelihoods across the country.

During the Bank’s Annual General Meeting held at the Ministry of Finance, Planning and Economic Development, UDB highlighted its growing role in mobilising and deploying long-term capital to sectors that are driving Uganda’s socio-economic transformation and strengthening the resilience of the private sector.

During the year, the Bank recorded a post-tax profit of UGX 63.4 billion, representing growth of 9.7 percent over 2024. Beyond strengthening the institution, this performance enhances UDB’s capacity to finance larger, more transformational investments that deliver lasting economic and social impact.

Growth

Speaking at the meeting, Managing Director Dr. Patricia Ojangole said the Bank’s sustained institutional growth further reinforces UDB’s  ability to mobilize and provide long-term capital required to accelerate Uganda’s transformation and support businesses that generate employment, increase exports and expand domestic production.

“Development finance delivers its greatest value when it unlocks opportunities that commercial markets alone cannot provide. Every investment we make is intended to strengthen productive enterprises, create decent jobs, expand value addition and improve incomes for Ugandans. These results demonstrate that development finance continues to be an effective catalyst for inclusive economic transformation.”

During 2025, the Bank’s total assets grew by 27% to UGX 2.26 trillion, up from UGX 1.78 trillion in 2024, supported by increased Government capitalisation and development partner financing. Total equity also increased by 24.8% to UGX 1.89 trillion, while net loans and advances to customers grew by 7% to UGX 1.63 trillion.

Stimulating private sector growth and deepening reach

UDB approved UGX 518.4 billion in new funding to support 120 projects across the country and disbursed UGX 502.2 billion, representing a 29% increase over the disbursements made in 2024. These investments enabled businesses to expand production, modernise operations, adopt new technologies and strengthen competitiveness in domestic and export markets.

The Bank’s active customer base grew to 689 enterprises operating across 105 districts, further expanding access to long-term development finance for businesses and communities across Uganda. The number of direct borrowers also increased to 112,392, reflecting the Bank’s growing reach and impact across the country.

Nearly two-thirds of the Bank’s financing was directed to agriculture, agro-industrialisation and manufacturing, sectors that are central to increasing productivity, strengthening food systems, promoting value addition and reducing Uganda’s dependence on imported manufactured goods.

Creating a sustainable Impact for Ugandans

Employment

The UDB financed enterprises created and sustained 69,202 jobs during the year, representing the strongest annual employment impact recorded by UDB in recent years. Beyond employment numbers, these jobs translate into more stable household incomes, improved livelihoods and greater economic participation for thousands of Ugandans, particularly young people working in productive sectors of the economy.

Economic impact

Enterprises financed by the Bank generated annual production valued at UGX 6.26 trillion, reflecting continued expansion of Uganda’s productive capacity. Increased production not only strengthens industrial growth but also expands local supply chains, supports domestic value addition and improves the availability of locally produced goods.

The enterprises financed by the Bank generated profits of over UGX 1.16 trillion, strengthening their capacity to reinvest in their businesses, adopt modern technologies, and expand operations, thereby creating additional employment opportunities and increasing their contribution to Government through taxes.

Tax contributions from supported enterprises increased by 22.5 percent to UGX 387 billion, translating into additional domestic revenue that supports Government investment in productive sectors and essential public services.

Foreign exchange earnings rose sharply to UGX 1.84 trillion in 2025, up from UGX1.11 trillion, demonstrating the growing competitiveness of Ugandan enterprises in regional and international markets while strengthening the country’s external position and reducing pressure on foreign exchange reserves.

Efficient Operations

The Bank’s operations remained robust, underpinned by prudent risk management, targeted technology adoption, and strategic optimisation of human capital. These measures, coupled with effective portfolio management, enabled UDB to sustain operational efficiency while expanding lending to sectors and enterprises that have traditionally attracted limited commercial financing, thereby deepening the Bank’s development impact.

Recognition and Awards

UDB’s performance and governance continued to receive recognition from international rating agencies and development finance institutions, reinforcing confidence among investors and development partners and strengthening the Bank’s ability to mobilise affordable long-term capital for Uganda’s development.

• The Bank secured a ‘AA+ (Uga)’ National Rating and a ‘B’ Long-Term Foreign Currency Issuer Default Rating from Fitch Ratings — the highest ratings available on Uganda’s national scale.
• UDB maintained an ‘A+’ rating — the highest rating category — from the Association of African Development Finance Institutions (AADFI), reaffirming the Bank’s standing as one of the continent’s best-performing DFIs.
• Dr. Patricia Ojangole was named Banker of the Year at the coveted Africa Banker Awards 2025 — the highest continental banking honour — in recognition of her leadership in driving the Bank’s performance and impact.
• The Bank received the Outstanding Business Sustainability Achievement Award at the 2025 Karlsruhe Sustainable Finance Awards in Germany, extending a legacy that includes being named Sustainability Leader of the Year for four consecutive years between 2021 and 2024.
• UDB retained its Level 5 certification under the Sustainability Standards and Certification Initiative (SSCI) Version 2 — the highest level of sustainability excellence in the certification process.

Institutional Milestones

• UDB successfully hosted the inaugural Uganda Development Finance Summit, that brought together by more than 500 policymakers, industry leaders, and local and international partners to align on Uganda and Africa’s development finance challenges, The Summit was officiated by H.E. the President of the Republic of Uganda.
• The Bank, in partnership with key stakeholders, launched the Reshaping Industry for Sustainable Economy (RISE) initiative, a transformational platform designed to translate development challenges into viable, investment-ready and fundable projects.
• The Bank further strengthened its funding base by deepening partnerships with bilateral and multilateral development partners, in a bid to enhance its capacity to sustainably finance priority sectors and deliver on its development mandate.

The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi Amos, commended the Bank for translating Government capital into measurable economic outcomes through investments that are expanding industry, supporting value addition, strengthening the private sector and contributing to the implementation of the National Development Plan IV and Government’s Ten-Fold Growth Strategy.

The Chairman of the Board of Directors of Uganda Development Bank, Mr. Geoffrey Kihuguru, reiterated the Bank’s commitment to ensuring its long-term sustainability by exercising prudent stewardship in asset creation and deployment, and in maintaining operational efficiency.

The results were achieved against a positive macroeconomic backdrop in which Uganda’s economy expanded by 6.3 percent, supported by strong performance across agriculture, industry and services, while inflation declined to 3.3 percent, creating a more favourable environment for business investment and economic growth.