Matia Kasaija, the minister of Finance, Planning and Economic Development, has directed the management of the Uganda Development Bank (UDB) to lay out plans for extending its services from urban areas to rural communities to improve access to its cheap loans.
Speaking at the release of UDB’s financial year results, Kasaija announced that the government has capitalized the bank with Shs 1 trillion for the upcoming financial year.
The move aims to enhance loan accessibility and stimulate economic growth.
“People are now earning money, but many still keep it in their bedrooms, under their beds, and so on. We encourage them to utilize banks,” Kasaija remarked.
“As the economy grows and as businesses—both in villages and towns—begin to benefit from government programs, we have agreed that UDB should expand its reach by opening more branches across the country,” he added.
According to the minister, UDB had disbursed Shs 2.45 trillion to 607 businesses by the end of December 2024. The supported sectors include commercial agriculture, agro-processing, manufacturing, tourism and hospitality, education, healthcare, the creative industry, and construction.
These investments have resulted in the creation of 55,553 jobs, generated Shs 20 trillion in output value, contributed Shs 944.2 billion in taxes, and brought in the equivalent of Shs 3.3 trillion in foreign exchange earnings, according to a statement from the ministry of finance.
Additionally, supported businesses earned Shs 3.15 trillion in profits. UDB has also rolled out special programs targeting small and medium enterprises (SMEs), as well as youth and women-owned businesses involved in wealth creation.
These programs include business development support and incubation services. UDB’s managing director Patricia Ojangole noted that the bank already has a presence in northern Uganda through its branch in Gulu city and is planning to open branches in other regions.
The bank recorded a post-tax profit of Shs 57.8 billion, a 16 per cent increase from Shs 49.8 billion in 2023, according to its financials. Ojangole attributed the growth to continued strategic investments in interest-earning assets, coupled with a firm commitment to managing its costs, among others.
She said the bank strategically reinvested Shs 437 billion collected as loan repayments, alongside Shs 80.7 billion in additional capital contributions from the government of Uganda. The capital injection significantly strengthened the bank’s capital base, raising cumulative capitalization from Shs 1.32 trillion to Shs 1.46 trillion.
Now that many Uganda citizens are very fearfuly about the direction of the national economy where right now this African country owes the international and national banking fraternity lots of money, it is very prudent for the finance minister to ask the Uganda Development Bank to pass on such debt risks to all the country. Every adult, child and the presidential bazzukulu should be made to pay about one million shillings every year of debts. One reckons such financial emergency calls imply that this UDB has been receiving much of what the country borrows and owes and yet it has not passed it on to those concerned. If lots of money has been borrowed to build and mantain hospitals, and such hospitals have not received that money for which it were borrowed for or the money was not properly managed, or money was damped into classified dodgy accounts, well where is the new money for UDB to start foot printing all across the country Mr Matia?
Now that this country is about to spend over 5 trillion shillings on approaching national elections of 2026 that are rigged, violent, and not free and fair, is it not throwing good money after bad by the treasury of Uganda?