KAMPALA, September 7, 2026 — Enterprises financed by the Uganda Development Bank [UDB] generated Shs 6.26 trillion in annual economic output and created or sustained 69,202 jobs in 2025, according to the bank’s latest Development Impact Report.
The figures, contained in the lender’s 2025 Development Impact Report launched on Monday, highlight the contribution of development financing to employment, enterprise growth, government revenue, production and Uganda’s broader economic transformation.
According to the report, the 69,202 jobs created and sustained by UDB-supported enterprises represented a 24.6 percent increase from the 55,553 jobs recorded in 2024, translating into an additional 13,649 jobs in one year.
The enterprises also increased their annual output by 3.4 percent, from Shs6.05 trillion in 2024 to Shs6.26 trillion in 2025, reflecting increased productive activity among businesses benefiting from UDB financing.
Profitability improved as well, with combined profits of UDB-supported enterprises rising by 9.1%, from Shs1.06 trillion in 2024 to Shs 1.16 trillion in 2025.
The stronger performance translated into higher tax contributions to Government. Taxes generated by businesses supported by UDB increased by 22.5 percent, from Shs316 billion in 2024 to Shs 387 billion in 2025.
Foreign exchange earnings recorded an even sharper increase, rising by 66.5 percent from Shs 1.11 trillion in 2024 to Shs 1.84 trillion.
The increase points to growing competitiveness among Ugandan enterprises, particularly those involved in manufacturing, agro-processing and other export-oriented activities. It also highlights the contribution of domestic production and exports to Uganda’s foreign exchange earnings.
Financing expands
The latest impact report comes amid an expansion in UDB’s development financing during 2025.
The bank approved Shs 518.4 billion in new financing for 120 projects and disbursed Shs 502.2 billion, representing a 29 percent increase in disbursements compared with 2024.
About 64 percent of the financing approved was directed towards agriculture, agro-industrialisation and manufacturing — sectors UDB considers critical to increasing production, promoting value addition, creating employment and reducing Uganda’s dependence on imported goods.
The bank’s reach also expanded during the year. Its active customer base grew to 689 enterprises operating across 105 districts, up from 524 enterprises in 92 districts in 2024.
UDB’s direct borrowers also increased to 112,392, according to the bank’s 2025 performance report.
Youth and women benefit
The impact of UDB financing extended beyond the number of jobs created.
The bank’s impact assessment shows that young people accounted for 73 percent of the jobs created and sustained by UDB-supported enterprises, while women accounted for 39 percent.
The figures underline the role of development finance in expanding access to productive economic opportunities among young people and women.
The projects approved in 2025 are also expected to generate additional economic activity once fully implemented.
According to the report, the projects are projected to create more than 33,600 additional jobs, generate about Shs 5.2 trillion in additional output and contribute approximately Shs 918.7 billion in tax revenue.
Supporting innovation on and green transformation
Beyond conventional lending, UDB continued to expand support for early-stage and innovative enterprises, including businesses involved in manufacturing, digital tourism and electric mobility.
The bank also continued efforts to channel capital towards technological and green transformation as part of its broader development finance mandate.
The impact report comes against the backdrop of a stronger financial position at the bank.
During 2025, UDB’s total assets increased by 27 percent to Shs2.26 trillion, from Shs 1.78 trillion in 2024, while total equity grew by 24.8 percent to Shs 1.89 trillion.
Gross loans increased by 7.7 percent to Shs 1.77 trillion, while net loans and advances rose by 6.6 percent to Shs 1.63 trillion.
The bank recorded a profit after tax of Shs63.4 billion, representing a 9.7 percent increase from Shs 57.8 billion in 2024. Profit before tax rose by 25.2 percent to Shs 91.6 billion.
Ojangole: Development finance must unlock opportunities
UDB Managing Director Dr Patricia Ojangole said the bank’s role goes beyond providing credit, arguing that development finance should unlock investment opportunities that conventional commercial financing may not adequately serve.
“Development finance delivers its greatest value when it unlocks opportunities that commercial markets alone cannot provide,” Ojangole said.
She said UDB’s investments are intended to strengthen productive enterprises, create jobs, expand value addition and improve incomes.
Finance Minister Henry Musasizi has also commended UDB for translating public investment into measurable economic outcomes, while calling for continued expansion of affordable, long-term financing to productive sectors.
Musasizi said UDB’s performance should ultimately be measured by the real economic outcomes generated by the money it lends, including employment, increased production, stronger enterprises and broader private-sector growth.
The report places UDB’s performance within the wider Government strategy of using development finance to strengthen Uganda’s productive capacity and accelerate economic transformation.
With agriculture, agro-industrialisation and manufacturing receiving the largest share of its financing, UDB is positioning itself as a key source of long-term capital for enterprises expected to drive production, value addition, exports and employment.
The rise in jobs, output, profitability, tax revenues and foreign exchange earnings recorded by UDB-supported enterprises in 2025 provides measurable evidence of the contribution of development financing to the wider economy.
The pipeline of projects approved during the year is expected to generate further economic activity as the investments are implemented and become fully operational.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
-
-
-
-
