Government Raises UDB Capitalisation to Shs2.2 Trillion to Drive Industrial Growth

What the report says

Government has increased the capitalisation of the Uganda Development Bank (UDB) to Shs2.2 trillion, a move intended to widen the lender’s ability to provide long-term financing for industrialisation, exports and value addition. The latest boost includes Shs442.2 billion injected during the 2026/27 financial year, according to the report from Nile Post.

Finance Minister Henry Musasizi said the stronger capital base should help UDB support sectors seen as central to Uganda’s economic transformation, including agro-industrialisation, tourism, mineral-based industrialisation, and science, technology and innovation. He made the remarks on Wednesday while commissioning UDB Tower, the bank’s renovated 14-storey headquarters in Kampala.

Musasizi said development finance institutions such as UDB are meant to connect government priorities with long-term capital and reduce investment risk for productive businesses. He also urged the bank to expand the use of tools such as private equity, project finance, corporate bonds, blended finance and public-private partnerships. Board chairman Geoffrey Kihuguru and managing director Patricia Ojangole described the new headquarters as part of the institution’s broader transformation.

The article also cited UDB’s 2025 Development Impact Report, which said 525 enterprises it assessed generated revenue, taxes, foreign exchange earnings and jobs. The bank said it currently serves customers across 114 districts and plans to expand further. More broadly, the development follows Uganda’s push for higher industrial production, export diversification and investment-led growth.