Gov’t Approves Shs63bn Additional Capital for UDB as Musasizi Pushes for Affordable Credit

What the report says

Uganda’s government has approved an additional Shs63 billion in capital for the Uganda Development Bank (UDB), according to SoftPower News, in a move aimed at strengthening the state development lender’s ability to provide affordable financing. Finance Minister Henry Musasizi said the bank has posted strong financial performance in 2025, but urged it to ensure that lending produces tangible outcomes such as more jobs, higher production and broader economic gains.

The announcement came alongside praise from Musasizi and Minister of State for Investment Aminah Mukalazi for the UDB board and management. The support signals continued government backing for the bank’s role in financing sectors seen as important for industrial growth, enterprise expansion and investment-led development.

SoftPower News’ report presents the decision as part of a wider push to improve access to credit, particularly for borrowers that may struggle to obtain lower-cost funding from commercial lenders. In general, development banks like UDB are often used by governments to channel long-term capital into productive parts of the economy, and this latest approval appears intended to reinforce that mandate. The emphasis on measurable impact suggests officials want the institution’s lending to be judged not only by balance-sheet performance but also by its effect on economic activity.