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Supporting Economic Recovery

The year 2021 opened with renewed hope for an improved economic environment as a result of an initial slowdown of the COVID-19 pandemic. Nonetheless, this trend and the related optimism were later reversed as a new wave of the pandemic ravaged the country, bringing with it record high numbers of infections and deaths. Like other countries, Uganda continued to experience varied social and economic effects from this pandemic during the year 2021, with several economic activities and enterprises, particularly those in the tourism and education sectors bearing the brunt of these effects. Throughout this period, the Bank continued to play its pivotal role in facilitating economic recovery.

UDB continued to implement credit accommodations to its customers especially those directly distressed by the COVID-19 pandemic, to guarantee the survival of these enterprises beyond the pandemic. To this end, the Bank deferred repayments on Ushs 172.5 Billion on its portfolio. The Bank also disbursed Ushs 428 Billion in new funding to various enterprises, thereby availing liquidity within the economy to facilitate varied economic activities. Additionally, under its interventions dubbed the “Special Programs”, the Bank launched specialized lending products specifically aimed at addressing constraints to credit access by the underserved segments including the youth, women and SMEs.

These products are complemented by the UDB Business Accelerator for Successful Entrepreneurship (BASE) Program through which the Bank provides business development and advisory services, whose purpose is to support informal enterprises to formalize, support credit-readiness as well as improved business operations for the enterprises enrolled onto the program – through capacity building interventions including training in financial management, book keeping, regulatory compliance, governance, among others. The Bank remains committed to providing relevant financial and non-financial interventions that support the private sector to be vibrant and sustainable, and to continue making its mark on building a sustainable economy. Click here for full details

The bank in 2020 approved a total loan value of Ugx 444Billion toward 75 projects spread across the country. These projects, upon full implementation, are expected to create 57,234jobs, generate output value of Ugx 3,785Billion, contribute taxes amounting to Ugx 749Billion and generate Ugx 1,138Billion in foreign exchange earnings.

  • Despite the COVID19 crisis 24,013 jobs were created/maintained amongst the enterprises that the bank financed. This is down from 28,313 jobs in 2019.
  • The total contribution to government tax revenue by companies financed by the bank amounted to Ugx160.1Billion, growing by 12% from Ugx141.7%Billion in 2019.
  • The annual output value for companies financed by the bank witnessed a 38% growth, supported by improved production mainly in agriculture and industry.
  • Profitability of the businesses financed by the Bank totaled to Ugx409.4Billion.

*Conversely, there was a 50% decline in export earnings during the year, yielding at Ugx175.4Billion – the drivers being the marked reduction in forex earnings for businesses engaged in tourism and hospitality, and manufacturers opting to either scale back production for export or to produce mainly for the local market during the lockdown.


Jobs created /maintained were 24,013, 33% (or 7,859jobs) were held by females. Similarly, women held 34% representation in the shareholding, board and senior management structures of the companies funded; 23 jobs were occupied by persons living with disability.

Number of people lifted out of poverty.

5,275 people were lifted out of poverty during the year and from the Bank’s interventions i.e., they started to earn incomes above the poverty line (US$1.90 per day).

The average yield per acre for cereal improved by 4% to 1,610Kgs while the value of industrial output improved from Ugx410.9Billion to Ugx1,520.7Billion.

Please see pie charts for employment and tax contributions below to be placed with content


In 2019, UDB generated socio-economic development through funding of various projects across the country.

Annual turnover of firms increased by 3% from UGX 1.738Tn in 2018 to UGX 1.795Tn in 2019. Profitability of enterprises supported increased by 10% from UGX 161Bn in 2018 to UGX 177Bn in 2019. Foreign exchange earnings for the economy increased by 17% from US$ 81M in 2018 to US$95M in 2019.

To further boost government efforts towards domestic revenue mobilization, enterprises supported by UDBL registered 6% increase in tax contribution from UGX 133Bn in 2018 to UGX 141Bn in 2019.

The level of employment increased by 18%, an upsurge from 23,970 in 2018 to 28,313 in 2019. This implies that 4,343 new jobs were created by enterprises financed by UDB.

Overall, employment increased by 18% from total employment of 23,970 in 2018 to 28,313 in 2019, with an equivalent of 4,343 new jobs created. There was a 18% increase in male employment compared to 11% increase in female employment.

There was 63% increase in female youth employment compared to 34% male youth employment from 2594 in 2018 to 6,975 in 2019 and 8,056 to 12,120 in 2018 and 2019 respectively. Full time employment grew by 52% and 27% for temporary employment respectively.

The Bank through the enterprises supported, contributed to the revenue mobilization of thegovernment. The Bank tracks the contributions from corporation tax and Pay as You Earn as her share of contribution to the domestic revenue mobilization narrative.

In 2019, tax contribution increased by 6% from Ushs133Bn in 2018 to Ushs 141Bn. Corporation tax contributed the largest share at 84% and 16% PAYE respectively. The manufacturing sector contributed 75% share of tax revenue, followed by 23% in agriculture. Health and education both contributed 1% whereas tourism, infrastructure, mineral oil &gas all had less than 1% contribution. In Uganda today, revenue mobilization remains a key development priority and essential to finance investments in human capital and infrastructure to achieve the SDGs.UDBL contributes to Uganda’s effort to generate and collect public revenues through taxes domestically to finance activities and services to improve healthcare, education, infrastructure services among others.

Overall, turnover increased by 3% from Ushs.1.738Bn to Ushs 1.795Bn in 2019.Agriculture sector registered the highest contribution to annual turnover at 58%, followed by 23% in manufacturing and 13% in mineral, oil & gas sector. Infrastructure, health, education and tourism contributed 3.4%,1.7%,0.8% and 0.1% respectively. The high increase in turnover in agriculture sector is attributed to creation of linkages within the value chain and the shift to value addition especially in agro-industries. In manufacturing, the growth in turnover is as a result of production of goods which were originally imported like PVC pipes and the growth of recycling industries.

There was a 9% increment in profitability of enterprises supported by the bank. Enterprises which maintain a profitable position is a relief to the bank as this reflects improved capacity to meet the operating cost (including loan repayment). Profitability impacts a company’s ability to secure financing from a bank, attract investors to fund its operations and grow its business. In2019, profitability was high in the manufacturing sector at 71%, followed by 22% in agriculture sector. Mineral, oil & gas, health, infrastructure, tourism and education reported the least level of 3%, (for both health and mineral, oil & gas) while tourism and education both recorded less than 1% in overall profitability.

Foreign exchange earned increased by 15% in 2019.The main leading sectors contributing to increased forex earnings include; Education,Tourism,Health,Manufacturing and Infrastructure.Agriculture contributed 5% with 0% from mineral, oil& gas.

The significant contribution from the education sector is attributed to increased number of foreign students in the school’s/education services supported. The tourism and hospitality sector registered over 70% foreign guests, significantly contributing to the forex earnings in 2019.In the case of health sector, this the cost of treating foreigners at facilities supported by the bank, an infant stage of health tourism.

The manufacturing and agro-industrialization sectors also registered increase in exports which attracted forex earnings. Foreign exchange earned through exports plays an important role in the growth process domestically. This is capable of further contributing towards improving the balance of payments for the country.

Green Finance and Impacts

  • Green finance portfolio toward emission sequestration and climate resilient was up to 36% (UGX66.47 Bn) for manufacturing sector and 16% (UGX 29.65 Bn) for Agriculture sector, out of the total amount of funds (UGX 96.12 Bn) invested by the bank in 2019 (Other sectors contributed 0% to emission sequestration).
  • The 36% allotment of green finance to the manufacturing sector led to a reduction of GHG emission by 84,162tco2e, saved 7,742m3 of water, resulting into 2,550 jobs.
  • The agriculture sector with a green finance allotment of 16% reduced GHG emission by 1,854tco2e, saved 960m3 of water, creating 22,969 jobs.
  • The high investment in the manufacturing is mainly concentrated in the plastics and paper recycling industries, while in agriculture, mainly included establishment of mini-water storage infrastructures such as earth dams and livestock breed improvement for drought resilience for high milk productivity.
  • There is high potential to spur up low-carbon and climate resilient through proper green design and business models to harness this opportunity across all the sectors.

Sectoral Distribution of Socio-Economic Impact

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