UDB graduates first Mbarara cohort of investor-ready SMEs

MBARARA CITY, December 22, 2025 – Uganda Development Bank Ltd [UDB] has successfully graduated its first cohort of small and medium enterprises [SMEs] in Mbarara district, marking a significant milestone in its mission to bridge the gap between local startups and formal financing.

The graduation, held Friday at the Makerere University Business School [MUBS] Mbarara Campus, saw 32 out of 46 enrolled enterprises complete a rigorous two-month in “Enterprise Development Programme [EDP]. The graduates, representing sectors from agriculture to oil and gas, are now equipped with the technical documentation and governance structures required to access capital from any financial institution.

The economic backbone

Joshua Allan Mwesiga, Director of Strategy and Corporate Affairs at UDB, highlighted the fragility of the local business landscape during his keynote address.

“SMEs make up 90 percent of Uganda’s private sector and contribute over 75 percent to our GDP. They are the backbone of our economy and a key driver of job creation. Yet, studies have shown that two out of three start-ups in Uganda fail within their first year,” Mwesiga stated.

He emphasised that UDB is not just providing loans, but building a foundation for survival. “Under Special Programs, UDB continues to make targeted interventions focused on dedicated financing schemes for SMEs, youth, and women. Our aim is to address their unique challenges in accessing credit—including collateral challenges, informality, and business readiness.”

Mwesiga reaffirmed the bank’s long-term vision, adding, “We are committed to continuing this journey with SMEs, walking with them to ensure they grow to a point where credit becomes easily accessible.”

Voices from the cohort

For many beneficiaries, the training was an eye-opener regarding the technicalities of modern commerce. Emmanuel Muhanguzi, who runs Jurassic World Vegetable Enterprise, a startup producing organic insecticides—noted that the program filled a massive educational void.

“Personally, I lacked knowledge on how to arrange my books of accounts, how to do market analysis, as well as risk management. The training course by UDB has equipped me to do that,” Muhanguzi shared.

He specifically praised the technological shift the programme introduced. “The trainers gave us software to help us manage our books of accounts better. That way, we can keep track of our capital inflow and outflow. These are practical tools that I didn’t acquire even at university.”

Another graduate, 32-year-old coffee and apiary farmer Julian Mumpe, observed that the training addressed the root cause of business failure: a lack of originality and research.

“The biggest driver of business mortality is founders replicating business ideas without due research,” Mumpe remarked. “We have learned a lot—from having the right mindset to debt management, financial literacy, and business planning. The trainers shared case studies of businesses that have thrived due to their resilience, which helped everyone appreciate that it is never too late to start.”

A collaborative future

The EDP is not a solo effort; it is a multi-agency initiative involving the Uganda Registration Services Bureau [URSB], Uganda Revenue Authority [URA], Uganda National Bureau of Standards [UNBS], and National Social Security Fund [NSSF]. By aligning these bodies, UDB ensures that by the time an SME graduates, they are fully compliant with national standards.

As Uganda’s national development finance institution, UDB continues to prioritize primary agriculture and manufacturing, which account for 80 percent of its portfolio. Through this Mbarara cohort, the bank has now incubated a total of 329 SMEs across major regional hubs including Gulu, Mbale, Arua, and Fort Portal, creating a new generation of “investor-ready” Ugandan entrepreneurs.

https://thecooperator.news/udb-invests-shs-95-billion-in-lango-to-boost-regional-economic-growth/

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