Uganda Development Bank posts 52% rise in loan portfolio

Uganda Development Bank (UDB), the country’s national development finance institution, has reported a 52% jump in the size of its loan portfolio to UGX1.2trn ($326mn), Kampala-based daily The Independent reports.

UDB ended 2022 with UGX 1.44 trillion in assets, a 19% increase in annual terms, on account of growth in funding, mainly through capital allocations from the government and drawdown of lines of credit.

Allan Joshua Mwesigwa, director of strategy and corporate affairs at UDB, is quoted as saying the 2022 financial results reflect strong investment in various businesses and signalled an economic recovery.

‘This performance is anchored on the bank’s deliberate efforts towards the revitalisation and transformation of Uganda’s economy,’ he said, noting the UDB’s product portfolio has been designed to support key priority sectors in line with the country’s strategic direction and National Development Plan III.

The UDB also saw the value of new loan applications approved rise by 40% to UGX 894bn last year.

The industrial sector (comprising of manufacturing and agro-industry) received the highest number of approvals (UGX 454.75bn) followed by primary agriculture (UGX 96.75bn).

Source: IntelliNews