Uganda Development Bank (UDB), the country’s only national development finance institution, today announced that it expects to create 3,928 jobs from January to March 2023 (Q1) project approvals.
In the first quarter of 2023, the Bank made significant strides in promoting economic growth and development in Uganda. With allocations worth UGX 443.18 billion and UGX 156 billion, UDB aims to create jobs, improve product value, generate tax revenue for the government and foreign exchange earnings.
“We remain committed to our fundamental promise to contribute to the socio-economic development of Uganda. The approved projects are expected to deliver various development outcomes including 3,928 jobs, US$74 billion in additional tax revenue to the government at the cost of UGX 1.6 trillion in improved output value. UGX 128.18 billion will be generated as foreign exchange for the country,” UDB CEO Patricia Ojangole said.
Development Impact by Sector
UDB continues to tap into Uganda’s potential as an agrarian country, so the Bank leverages that dividend to drive sustainable growth. As such, the agro-processing and manufacturing sub-sectors promised the most jobs, with 1,728 and 987 jobs, respectively.
Primary agriculture
In the primary sector of agriculture, UDB approved a loan amount of UGX 2.21 billion. The approved projects in this sector are expected to create 117 jobs, contribute UGX 4.92 billion worth of output and generate UGX 480 million in tax revenue. The funds are intended to help increase agricultural productivity, promote technological progress and eliminate post-harvest losses in the agricultural sector.
Agricultural processing
A loan amount of UGX 80.42 billion was approved in the field of agro-processing. Approved projects in this sector have the potential to generate 1,728 jobs, output value of UGX 420.74 billion, tax revenue of UGX 25.35 billion and foreign exchange earnings of UGX 48.29 billion. Investments in agro-processing will serve as an important market for agricultural products (raw materials), increasing value addition and promoting exports.
Production:
Manufacturing is recognized as a key sector, driving economic transformation, offering employment opportunities, substituting imports and boosting the country’s export capacity. UDB has approved a loan amount of UGX 239.49 billion for projects in the manufacturing sector. These projects are expected to create 987 jobs, contribute UGX 348.3 billion in output value and generate UGX 12.78 billion in tax revenue.
tourism
Efforts to improve infrastructure and promote Uganda as a desirable tourist destination continue to drive growth in the country’s tourism sector. A loan of 3 billion US dollars was approved to promote infrastructure in the tourism sector. These projects are expected to create 301 jobs, contribute UGX 18.4 billion in output value, UGX 560 million in tax revenue and UGX 1.71 billion in foreign exchange earnings.
Infrastructure
Three (3) infrastructure projects were approved with a loan amount of USD 117.79 billion. These projects are expected to create 795 jobs and contribute $844.55 billion in output. This investment plays a crucial role in strengthening Uganda’s infrastructure, promoting economic growth and attracting additional investment.
Promoting development through SMEs, youth and women
More than ever, the Bank is committed to empowering SMEs, youth and women. Under UDB’s special programs, a financing vehicle that directly targets SMEs, youth-owned and women-owned enterprises, the Bank has approved UGX 2.9 billion to support 12 projects. This sector is expected to create 206 jobs.
“The imperative to address our country’s challenges of poverty, inequality and unemployment has become increasingly important and urgent. As a Development Finance Institution, we are determined to transform the lives of millions of Ugandans and improve the quality of life across Uganda in line with our mandate and vision to positively impact lives of the Government of Uganda,” concluded Ojangole.
About Uganda Development Bank Limited
Uganda Development Bank Limited (UDB) is the country’s national development finance institution (DFI) mandated to accelerate Uganda’s socio-economic development through sustainable financial interventions. Under this mandate, the Bank supports private sector projects that demonstrate the potential to deliver high socio-economic value through job creation, improved manufacturing output, tax investment and foreign exchange generation, among other outcomes.
These projects fall under key priority sectors of our economy and are in line with Uganda’s development priorities. The Bank’s financing interventions are mainly in the primary agriculture, agro-processing and industrial sectors, which account for about 80% of its investment portfolio. However, the Bank has specific interventions in other sectors, including tourism, human capital development and infrastructure, including ICT.
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