Uganda set to recapitalize UDB

Prime Minister Dr. Ruhakana Rugunda unveiling new UDB logo

Prime Minister Dr. Ruhakana Rugunda unveiling new UDB logo

The Ugandan government plans to inject more money in the Uganda Development Bank as the non-deposit banking institution positions itself to be an engine driver to economic development in the country.
Speaking at the unveiling of the Bank’s new corporate image at Sheraton Hotel, Kampala on Tuesday night, Prime Minister Dr Ruhakana Rugunda said as the sole shareholder in the banking institution, government will revamp the bank through a phased process starting this financial year.
The Prime Minister said his office is following up on the recommendations of a recent proposal presented to the Presidential Economic Council on how best the bank can be strengthened.
Rugunda said the government recognizes the importance of injecting more money into the bank for it to execute its development mandate.
“Government is committed to revamping Uganda Development Bank to bring it to its rightful position as a key player in financing development projects that can promote employment value addition, industrialization and development of local entrepreneur skills for self-sustainability of the economy,” Dr Rugunda said
The premier stressed the overhauling process will be sustained through annual budgeting and that the government’s interest is to ensure funds earmarked for this purpose are properly utilized.
He said the government will direct more capital to priority areas that bring and deliver the greatest benefit to the people.
The Prime Minister underscored the reform process at UDB is aimed at realigning its operations and practices to meet modern day expectations of a development finance institution.
Top amongst the reforms is service delivery efficiency and rebranding of the bank to give an edge in today’s fiercely competitive financial market.

The caption is Dr. Rugunda and UDB staff

Dr. Rugunda and UDB staff

Patricia Ojangole, the Chief Executive Officer of Uganda Development Bank said the bank finances key sectors of the economy that have been highlighted in the National Development plan.
Ojangole cited target sectors of agriculture and agro-processing, education, manufacturing health, tourism among others.
“Mindful of the crucial role agriculture plays in providing employment, the sector currently constitutes over 50% of our total lending portfolio” she said adding “overall the bank’s financing activities have resulted into growth in portfolio size and a number of projects funded by the bank, meaning more employment for Ugandans”.
She noted the bank’s portfolio size grew by 74% in the last two years from Ugx 66 b in 2012 to Ugx 115 b  in 2014.
Ojangole also said the assets of the bank have grown from Ugx136 b in 2012 to over 170 billion in 2014 representing a 25% growth.

Dr Samuel Ssejaka, the Chairman, Board of Directors at UDB said the bank has developed a strategic plan aligned to the National Development Plan.
He added the  bank has put in place a client’s charter that ensures borrowers are given money in not more than 21 days upon application.
The solely State owned bank is rebranding for the first time since its inception in 1972 to provide mid to long term financing to fuel sustainable economic growth of the country.