Uganda Development Bank Limited (UDB) and African Development Bank (AfDB) signed an agreement for funding worth USD 20 million. The signing ceremony took place at UDB’s Head Office at Rwenzori Towers, Nakasero.
This follows the approval by parliament earlier this year, of a sovereign guarantee to secure this funding. The funding, extended to UDB as a line of credit, shall be on-lent to Small and Medium Enterprises (SMEs) and infrastructural projects in Uganda, at favourable interest rates.
This is a significant intervention for UDB whose clientele is 90% SMEs. The funding will further bolster the Bank’s capacity to provide medium and long-term development financing to business enterprises operating in the priority sectors of the economy as outlined in the country’s national development plan (NDP II) and in line with AfDB’s “High 5” priority areas. This funding comes along with a technical assistance grant to support UDB in strengthening her institutional capacity and assuring sustainability of the Bank’s operations.