UDB Pumps Shs500bn into Businesses as Profit Rises to Shs63bn

What the report says

Uganda Development Bank said it increased lending to businesses in 2025, disbursing Shs502.2 billion, or about 29% more than the previous year, while also approving Shs518.4 billion in additional financing. The state-owned lender said the money supported 120 projects nationwide, with agriculture, agro-industrialisation and manufacturing taking the largest share. The bank said the rise in lending reflects its role in providing long-term capital to firms that may struggle to access affordable commercial credit.

According to Nile Post, UDB also reported stronger financial performance. Its total assets grew to Shs2.26 trillion from Shs1.78 trillion in 2024, net loans and advances rose to Shs1.63 trillion, and total equity increased to Shs1.89 trillion. Profit after tax climbed to Shs63.4 billion, up from Shs57.8 billion a year earlier. Managing Director Patricia Ojangole said the growing balance sheet was improving the bank’s ability to finance investments that expand production, add value, create jobs and raise household incomes.

The bank said its supported enterprises created and sustained 69,202 jobs in 2025 and generated Shs6.26 trillion in production. It also reported higher tax payments and foreign exchange earnings from those businesses. UDB said its customer base expanded to 689 enterprises across 105 districts, helped by government capitalisation and funding from development partners.

The results matter because UDB is a key public source of development finance in Uganda, especially for sectors tied to industrialisation and export growth. The article also noted that Finance Minister Henry Musasizi praised the bank’s contribution to private sector development, while broader context suggests the figures come amid relatively stronger national economic growth and lower inflation.