The Arab Bank for Economic Development in Africa (BADEA) has today approved a USD20 Million funding line to Uganda Development Bank Ltd (UDB), the country’s national Development Finance Institution, aimed at supporting the private sector in Uganda.
The two organizations have signed agreements to augment the commitment witnessed by the by H.E. Dr. Fahad Aldossari, the Chairman Board of Directors BADEA and Mrs. Patricia Ojangole, the Managing Director UDB.
The funding will be extended to the critical sectors of the economy; USD10 million trade finance line of credit will be used exclusively to finance eligible import transactions from the Arab countries and USD10 million will be used exclusively to finance eligible private sector projects for the benefit of sub-borrowers within Uganda.
“This new funding will go a long way in bridging financing gaps in the key economic and productive sectors particularly Primary Agriculture, Agro-Industry and Manufacturing,” Ms Patricia Ojangole, the Managing Director UDB said during signing of the agreements at Speke Resort Munyonyo – Kampala.
UDB’s relationship with BADEA’s dates back to 1985 when the Bank acquired its’ first line of credit to support the private sector. BADEA has previously extended to UDB four lines of credit that have all been fully utilized.
“Today’s new funding of USD20 million will bring the total number of lines of credit extended to the Bank by BADEA to six (06), a clear demonstration of BADEA’s commitment to support UDB in its aspiration of fostering Uganda’s socio-economic development. It is also testament to the confidence of our stakeholders in the Bank and the role it is playing, and aligns with UDB’s ambition to diversify its funding base thereby enable it to address the continually growing demand for patient capital,” Ms Ojangole adds.
In her closing remarks, Ms Ojangole applauded BADEA’s support and reiterated the Bank’s commitment towards delivering its mandate of improving the quality of life of Ugandans.