UDB unveils Shs1.8 trillion plan to step up lending

Capital. The Chairperson of the Parliamentary Committee on National Economy, Ms Saida Bumba, responds to UDB as other Members of Parliament look on at Kampala Serena Hotel yesterday. National Development Banks play a key role in providing long-term capital. COURTESY PHOTO 

By MARTIN LUTHER OKETCH

Uganda Development Bank (UDB) has unveiled a four-year strategic plan of $500 million (about Shs1.8 trillion) to provide long-term financing to the private sector.

Despite government’s efforts of capitalising, UDB cannot meet the growing demand for capital needed by the private sector. This is partly why the development lender is seeking sovereign guarantees from Parliament and government to effect some of the endorsed financing from multilateral lenders such as African Development Bank (AfDB), Islamic Development Bank, European Investment Bank, French Development Organisation, Kuwait Fund, BADEA and EXIM Bank of India.

Addressing Members of Parliament (MPs) on the Committee of National Economy yesterday at Kampala Serena Hotel, the acting managing director UDB, Mr Denis Ochieng said: “UDB’s four year strategic plan has three impact goals which include reducing the number of people living below the poverty line of $1.25 by 500,000 people by the year 2024, building sustainable food security by lending more to the agriculture sector and industrialisation.”

Adding: “Our target is to relieve 1 million people from hunger and industrial output of Shs4 trillion.”

However, Mr Ochieng said for the programme to succeed, they will need government’s assistance in approving expanded credit lines to access funds from other international financial institutions.

Balance sheet
Presenting the bank’s balance sheet, Mr Ochieng said the total shareholders capital is Shs284 billion and the ploughed back profit of Shs50 billion brings the total capitalisation of Shs334 billion which leaves them with the balance of Shs164 billion for the bank to get fully capitalised.