The Bank’s direct equity investment shall be in both start up and existing projects or enterprises, in partnership with private co- investors. The project may be initiated by the Bank and/or private investor and shall not target to take majority stake.

The Bank’s prefers to exit at the earliest.

The Bank may wish to hold such equity for a limited period of up to when the business has attained profitability and is sustainable. In any case, such investment should be held for a period not exceeding 10 years.

Promotion of investments in industries and sectors that is strategic to the growth and development of the economy. The Bank will evaluate the likely impact of the investments on the utilization of local raw-materials, employment levels, foreign exchange earnings/savings and entrepreneurial skills development amongst others.

Security and Expected Returns:
The security for the Bank’s investment in equity shall be the assets of such companies to the extent of the Bank’s investment. UDBL shall undertake direct equity investment only if the projected internal rate of return on the equity investment is at least 5 percentage points above the Bank’s prevailing lending rate for long-term loans financed by UDBL local currency Resources.

Qualifying Sectors/Businesses:
Key growth sectors of Uganda economy with emphasis on capital development in sectors such as primary agriculture & fisheries, forestry, agro-processing, education & social services, health, oil & gas, infrastructure, manufacturing, construction & real estate, hotel, tourism & hospitality, extractive industries amongst others.

Service – Co-Operatives and Farmer Groups
Uganda Development Bank Limited (UDBL) has available funding for registered farmer groups/co-operatives. The cap per farmer Group is UGX 500 million and an individual farmer in the group cannot access funding exceeding US dollars 25,000 or its UGX equivalent.

Group Identification
Uganda Development Bank Ltd identifies farmer groups composed of 5- 400 farmers whose individual members cannot raise adequate collateral on their own.


  • To improve agricultural productivity
  • To promote food security
  • To improve the income and livelihoods of rural-based farmers
  • To create positive socio-economic impact to the local farmers in terms of income, employment and productivity
  • To reduce constraints to financial services faced by agricultural projects.

Eligibility Criteria
Farmer groups should have the following requirements in order to access the funds

  • A well-structured leadership
  • Bye-laws and conditions
  • Memorandum and Articles of association where applicable
  • Similar financial needs within the group
  • Record of meetings
  • Certificate of registration
  • Resolution to borrow by the Farmer Group/Cooperative
  • Certificate of Maximum Liability
  • Off-taker arrangements/agreements

Note: Funding is subject to a satisfactory appraisal by the UDBL team.

Terms of the Loan

  • Maximum grace period and tenure of the loans are in accordance with production cycle of the crop.
  • UGX Interest rates between 10%-12% per annum
  • Crop insurance / Loan protection insurance
  • An individual in the group is entitled to a maximum of US dollars 25000 or its UGX equivalent.

A memorandum of understanding between the off taker, UDBL and the farmer group is required.


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