The Development Bank Of Uganda Limited (UDBL) Is A State-owned Development Financial Institution Group In Uganda.
Overview
The UDBL, Which Began Operations In 1972, Was The First Development Financial Institution Group Established By The Government Of Uganda. The Main Objective Of The UDBL Is To Promote And Finance The Development Of Various Economic Sectors, With Particular Emphasis On Agriculture, Industry, Tourism, Housing And Commerce.
In June 2018, The Government Negotiated With The African Development Bank To Obtain A Loan Of 20 Million USD (76 Billion USD) For The Capitalization Of The UDBL, Mainly For Mechanization And Value-added Loans To The Agricultural Sector. As Of December 2023, Shareholders' Equity Is $1.38 Trillion ($362 Million) And Total Assets Are $1.67 Trillion ($454.70 Million).
History
UBDL Was Established In 1972. In 1979, There Was A Change In Political Leadership In Uganda And UBDL Was Subsequently Able To Secure Substantial Credit From External Financiers Such As The African Development Bank, The International Development Association, The European Investment Bank, The European Economic Community, The Organization Of Petroleum Exporting Countries And The Arab Bank For Economic Development In Africa (BADEA) (Badia). With These Funds, UDBL's Focus Shifted To Funding Medium- And Long-term Projects In Agriculture, Manufacturing And Tourism. Between 1997 And 2001, The Bank Was Restructured, Recapitalised And Restructured To Become A Limited Liability Company Wholly Owned By The Government Of Uganda.
Future Plans
As Of September 2013, The Bank Was Restructured And Repositioned To Play A Larger And More Visible Role In Development Finance In Uganda. The Company Developed A Medium-term Recapitalisation Plan (2013-2017) To Increase Shareholders' Equity From Its Current $100 Billion ($40 Million) To $500 Billion ($200 Million).
Its Growth Plan Has Been Streamlined To Align With Uganda's National Development Plan (NDP) And Vision 2040. Vision 2040 Aims To Transform Ugandan Society From A Peasant Population Into A Modern, Prosperous Nation By 2040. Some Of The Development Partners UDBL Is Working With Include The Kuwait Fund, The African Export-Import Bank, BADEA And The Islamic Development Bank.
In June 2020, Uganda's Ministry Of Finance, Planning And Economic Development Announced Its Intention To Further Increase Its Equity In UDB From $500 Billion ($136 Million) To $2 Trillion ($545 Million). This Is Part Of The Bank's Five-year Strategic Plan For 2020-2024.
In March 2024, Management Revealed Plans To Set Up Five Regional Offices To Bring Services Closer To The Bank's Clients. Locations Of Regional Offices Include:
- Arua Office: Arua City
- Gulu Office: Gulu City (established In 2023)
- Hoima Office: Hoima City
- Mbale Office: Mbale City
- Mbala Office: Mbala City
Services
UDB's Services Include Short-term Loans, Medium-term Loans, Long-term Loans, Equity Investments, Trade Finance Loans, And Bank Guarantees.
RATING
In April 2024, Fitch Ratings Awarded UDBL The Country A Long-term Rating Of "AAA (uga) " With A Stable Outlook And The "highest Rating Achievable Nationally For Uganda".
Board Of Directors
As Of August 2018, UDBL's Board Of Directors Consists Of The Following: 1. Felix Okoboi: Chairperson 2. John Biaruhanga 3. Frank Tumuhairwe: 4. Nimrod Vaniara 5. Henry Balwani Magino 6. Sylvia Angie Ufuyuru 7. Patricia Ojangole - Managing Director.
Management
As Of August 2017, UDB's Management Team Is: 1. Patricia Ojangole: Managing Director 2. Joshua Allan Mwesiga: Director Of Strategy And Corporate Affairs 3. Denis Owens Ochieng: Director Of Finance And Business Operations 4. Mahamoud Andama: Director Of Investments 5. Stephen Hamya: Chief Internal Auditor 6. Sophie Nakandi: Bank Secretary/Head Of Legal Affairs.
Awards
UDBL Was Named "Regional Bank Of The Year In East Africa" At The 18th African Banker Awards Ceremony In Nairobi, Kenya, In May 2024. At The Same Awards Ceremony, UDBL Was Awarded A Silver Award (A + Rating) In The Development Financial Institutions Group Category For Diligent Adherence To The Guidelines Of The Association Of African Development Financial Institutions Group (AADFI).
Controversies
An Audit By Uganda's Auditor General Revealed Financial Misconduct By UDBL Board Members And Senior Management Resulting In Financial Losses, According To A Report Published In 2013. As Of June 2014, Both The Board Of Directors And The Management Team Involved In The Fraud Have Been Fired, And The Investigation Continues.
