- The Bank continues to grow, with total assets closing at UGX1.67 trillion
- The bank registered a net profit of UGX 49.7 billion
Image: UDB
Minister for Finance, Matia Kasaija has noted that the government has intensified plans to expand the Uganda development bank across the country to bring financial services closer to business communities.
Kasaija made the remarks during the release of the UDB’s performance for the year ended 2023 held on 23rd July 2024 at the Ministry of Finance in Kampala City.
He further asked the leaders of the bank led by Ms. Patricia Ojangole to have programs in place that will promote and publicize the bank to ensure it is well known among Ugandans.
‘’Ugandans, I’m sure many particularly those in rural areas don’t know this bank and we want them to know because in the future it is going to be a very big bank. We are already beginning to put upcountry stations and therefore the sooner we advertise the bank to the eyes of business communities the better’’. Kasaija said.
The performance showed that the bank has registered a net profit of UGX49.7 billion, a 17% uplift from UGX 42.6 billion in the year 2022. The bank’s net loans also expended UGX 1.47 trillion in 2023, reflecting robust support to the private sector.
According to Ms Patricia Ojangole, the managing director of UDB, The Bank has strengthened its commitment to providing affordable and patient capital, achieving significant milestones amidst economic challenges highlighting its continued pivotal role in fostering economic resilience and sustainable growth across key sectors of the economy.
The meeting was attended by the Bank's shareholders, the Finance Minister, Hon. Matia Kasaija, and the Minister of State Planning, Hon. Amos Lugoloobi. Also in attendance were officials from the Office of the Auditor-General and the Ministry of Finance, the Bank's Board of Directors, and Executive Management.
Growth
According to the UDB Managing Director Ms. Patricia Ojangole, in 2023, the Bank approved UGX691.8 billion and disbursed UGX610 billion, demonstrating a dedicated approach to supporting private business growth.
"UDB remains committed to fostering inclusive economic growth through strategic investments in sectors that drive sustainable development and job creation across Uganda. Our focus on key priority sectors underpins our mission to deliver high socio-economic value and support Uganda's long-term development goals," she said.
Scaling Up Investment
In 2023, the Bank approved funding of UGX692 billion in new loans to over 200 enterprises in 63 districts nationwide.
"These projects, upon full implementation, are expected to create 18,558 new jobs and generate an output value of UGX11.4 trillion, from which UGX616 billion will be generated as tax revenue to the Government, and UGX3.34 trillion in foreign exchange earnings," the Bank's Annual Report revealed.
Creating a Sustainable Impact for Ugandans
Employment
51,841 jobs were created/maintained amongst the enterprises that the Bank financed, compared to 51,439 jobs realized in 2022.
"64% of the jobs created and maintained were filled by the youth, 27% by women, and 0.25% by Persons with Disabilities (PWDs). Additionally, 33%, 39%, and 0.2% of the youth, women, and PWDs, respectively, are among the shareholders,' the report said.
Supporting Private Sector Performance
This output value grew 71% year-on-year, from UGX3.4 trillion in 2022 to UGX5.8 trillion in 2023, supported by improved production mainly in agriculture and industry.
Tax Contribution
Similarly, the profitability of these businesses improved to UGX869 billion from Ugx492 billion in 2022.
Because of improved output, performance, and profitability amongst the companies financed by the Bank, their total contribution to government tax revenue grew by 60%, to Ugx236.1 billion from the Ugx147.5 billion registered in 2022.
Bank Size
The Bank continued to grow, with total assets closing at UGX1.67 trillion in 2023, a 10% uplift from UGX1.52 trillion the previous year. Loans and advances (net) stood at UGX1.47 trillion, growing 20% from UGX1.22 trillion, underpinned by the UGX610 billion new loan disbursements realized during the reporting period.
To fund the creation of these assets, the Bank reinvested UGX467 billion it collected as repayments from its borrowing customers and deployed UGX97.3 billion received from the Government as additional capital contributions, complemented by an additional UGX120.5 billion in drawdowns from various lines of credit held with its funding partners