UDB releases UGX 691 B for 201 social economic projects

Uganda Development Bank’s (UDB) gross loan disbursements in the year 2023 grew by 21 percent while its total assets rose by eight percent in a year marked with a rollout of new initiatives towards supporting the private sector.

During the year 2023, the Bank approved funding amounting to UGX691 billion to support 201 projects across the country.

The report released  (unaudited results) indicates an 8% growth in assets from UGX1.52 trillion in 2022 to UGX1.64 trillion last year.

This growth was driven by the increase in gross loans to customers, which inched up by 24 percent to close the period at UGX1.6 trillion.

"During 2023, we delivered a strong set of results, consistent with the performance trend over the last couple of years, and in line with our role as the country’s Development Finance Institution. The Bank continues to make progress on its strategy implementation, fulfilling our primary mandate of generating tangible development outcomes that propel the country’s socio-economic progress. We remain resolute on carefully balancing these efforts with the need to be a financially sustainable institution," said Denis Ocheing, the Ag. UDB Managing Director.

Mr Ocheing further reported a slight uptick of 5 percent in borrowing and grants, reaching UGX245 billion from UGX232 billion in December 2022. At least UGX466.5 billion was collected in loan repayments and reinvested to fund disbursements to various enterprises during the year.

According to him, consistent with the bank's strategy to support the key sectors of the economy, 59% of this approved funding, targeted the industry sector.

A sum of UGX19 billion was allocated to fund primary agriculture activities while UGX223 billion was approved to boost the infrastructure sector.

He noted that the bank has continued to make significant strides towards facilitating Uganda’s socio-economic development.

On this front, 18,558 jobs are expected to be created through the approved projects on top of generating UGX 11.39 trillion in additional output value, UGX 615.96 billion in tax revenue to the Government, and UGX 3.3 trillion foreign revenue earnings.

The performance report was released at a function held at the newly constructed Xsabo solar power plant at Kabende village in Mubende district.

The Ugx 80.6 billion project is among many supported by the Uganda Development Bank in line with economic social transformation.

The plant can generate 20 megawatts. It is set to be commissioned on 31st March 2024 with a validity license of 21 years from the regulators, and the Electricity Regulatory Authority.