Musasizi Commends UDB, Calls For Affordable Credit and Measurable Impact

The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has commended the Uganda Development Bank (UDB) for its strong performance in 2025, while urging the Bank to deepen its contribution to job creation, enterprise development, affordable financing, increased production and Uganda’s economic transformation.

During an engagement with the UDB Board and Management, led by Board Chairman Geoffrey T. Kihuguru, the Bank reported a profit after tax of Shs63.4 billion, total assets of Shs2.26 trillion and gross loans of Shs1.77 trillion. UDB approved loans worth Shs518.4 billion and disbursed Shs502.2 billion to 112,392 borrowers, with 69,202 jobs reported through its interventions. Hon. Musasizi congratulated the Board, Management and staff, noting that the results reflect prudent financial management and UDB’s contribution to Uganda’s development agenda.

The Minister stressed, however, that UDB’s success must be measured not only by financial performance, but by the real and verifiable impact of its financing. He called for stronger systems to track outcomes, particularly jobs, and ensure that employment figures are clearly linked to specific UDB-supported projects. “We need measurable jobs. We want to be told what we will believe and able to defend,” he said.

Hon. Musasizi further urged UDB to provide affordable and patient credit to manufacturers, SMEs and other productive businesses, noting that the cost of capital remains critical to competitiveness, investment and expansion. He said Government’s long-term ambition is to support the availability of single-digit interest rates, particularly for investments that create jobs, expand production, promote value addition and strengthen Uganda’s industrial base.

The Minister welcomed UDB’s support to SMEs, youth and women, as well as priority sectors including agriculture, manufacturing, tourism and infrastructure under the Government’s Ten-Fold Growth Strategy. He also encouraged the Bank to strengthen project appraisal and preparation, diversify its sources of funding and build long-term financial sustainability.

UDB Board Chairman Geoffrey T. Kihuguru said the Bank is moving towards a demand-generation and programmatic approach, proactively identifying and preparing bankable projects, de-risking investments, supporting enterprises and mobilising private capital for high-impact investments.

The message is clear: UDB’s financial performance must translate into measurable development outcomes—affordable credit, jobs, stronger businesses, increased production, exports, industrialisation and improved livelihoods. Every shilling deployed must contribute meaningfully to Uganda’s economic transformation.