BY D SEBUNYA: The 2023 Development Impact Report of the Uganda Development Bank (UDB) reveals that UDB-supported businesses contributed 236.08 billion Shillings to Uganda’s revenue, accounting for 1.43 percent of the national domestic revenue.
UDB, as the nation’s Development Finance Institution (DFI), aims to accelerate socio-economic development through financial and non-financial interventions, focusing on job creation, improved production, tax contributions, and foreign exchange generation.
The report highlights that the manufacturing sector led in tax contributions at 47%, followed by agro-processing at 27.9%, and primary agriculture at 15%. Even lower-contributing sectors like tourism (3.2%), education (0.1%), and others (0.5%) played a role in the collective tax revenue.
The bank’s support not only boosted tax contributions but also enhanced employment, creating 51,841 jobs in 2023, up from 51,439 in 2022, with 41.21% permanent and 58.78% temporary jobs. The total output value was 5.8 billion Shillings, generating significant tax revenue and 953 billion Shillings in forex earnings.
Managing Director Patricia Ojangole emphasized UDB’s role in fostering economic growth and job creation, highlighting the bank’s commitment to sustainability and regional trade. She noted the significant impact of the bank’s interventions on Uganda’s socio-economic transformation.
The report also details the impact on temporary employment, particularly in primary agriculture, where 41.5% of jobs were temporary due to the sector’s seasonal nature. Youth filled 64% of the jobs created, women 27%, and Persons Living with Disabilities (PWDs) 0.25%. Women held 39% of shareholding, up from 27% the previous year, due to deliberate inclusion efforts.
In 2023, UDB-supported enterprises posted 869.05 billion Shillings in profitability, indicating strong financial growth. Locally produced products saw a 47% increase in earnings, reaching 953 billion Shillings, primarily driven by manufacturing and agro-processing sectors. Sixty-six percent of raw materials used by UDB-funded enterprises were locally sourced, underscoring the strength of local industries.
The bank is committed to social inclusion, with targets prioritizing youth, women, and PWDs. In 2023, 33% of companies funded by UDB were owned by women. Women comprised 31% of board members, 43% of senior management, and 27% of the workforce. Youth filled 64% of jobs, and PWDs 0.25%.
Environmental sustainability is a priority for UDB, with strategies ensuring that supported enterprises share this commitment. In 2023, 72% of assessed enterprises were certified by NEMA, up from 56.5% in 2022.
Enterprises using renewable energy significantly reduced emissions compared to those relying on non-renewable sources. UDB emphasizes the urgent need to transition to cleaner energy sources, particularly in the infrastructure sector.
The report highlights UDB’s focus on climate action, resource use efficiency, afforestation, and cleaner production technologies. Sustainable waste management practices are also prioritized, with strategies like composting, recycling, and energy generation in place.
The 2023 Development Impact Report underscores UDB’s progress in fulfilling its mandate to improve Ugandans’ quality of life.
Patricia Ojangole concluded by thanking customers and reaffirming the bank’s commitment to measuring impact, learning from successes and challenges, and sharing insights to inform action. UDB aims to advance transformation, make opportunities sustainable, and improve the well-being of the people it serves.