What Uganda Development Bank does

Uganda Development Bank Limited (UDB) is the national Development Finance Institution (DFI) of Uganda, wholly owned by the Government of Uganda and established by presidential decree in 1972. Headquartered in Kampala, UDB provides financial and non-financial solutions to registered private sector enterprises, cooperatives, and farmer groups operating in priority sectors: agriculture and agro-processing, manufacturing, tourism and hospitality, health and education, and infrastructure. The Bank operates a wholesale-only model, distributing through its Kampala headquarters, regional offices in Gulu (Northern, 2023), Hoima (Bunyoro, 2025), and Mbale (Eastern, 2026), an online application portal at eservices.udbl.co.ug, and development partner referral channels.

UDB's core financial products comprise term loans with tenors up to 15 years, equity investments, asset finance, trade finance (including letters of credit), and a specialized farmer group financing model. In 2022 the Bank launched its Special Programs initiative adding SME Kazi Loans (UGX 50M+ at 10-12% p.a.), Women Prosper Loans (UGX 100M-900M, tenors 18 months to 8 years), and Youth Step-Up Loans targeting underserved segments. Non-financial services include the Business Accelerator for Sustainable Entrepreneurship (BASE), Transaction and Enterprise Support Services (TESS), and project preparation support. A UGX 50 Billion Climate Finance Facility was launched in April 2023, and UDB co-developed AgriConnect, a digital platform targeting over 18,000 smallholder farmers. The underlying technology is a conventional DFI loan management and risk assessment platform with no disclosed AI/ML components.

Revenue is generated primarily through interest income on the loan portfolio, supplemented by equity returns, trade finance fees, asset finance income, and advisory fees from non-financial services. The balance sheet reached UGX 1.44 trillion in total assets by 2022 (with the gross loan portfolio at UGX 1.298 trillion, up 52% year-over-year), reflecting roughly ten-fold growth over the prior decade. Capitalization is government-backed — described as the most capitalized national development bank in Africa — and supplemented by lines of credit from international partners including BADEA (USD 150M in 2025; USD 20M in 2022), the French Development Agency (EUR 40M in February 2026), the African Development Bank, Afreximbank, and the Bill & Melinda Gates Foundation. The Bank holds a Fitch National Long-Term Rating of AAA and is the first sustainability-rated bank on the African continent.

Name

Uganda Development Bank

Legal name

Uganda Development Bank Limited

Website

https://udbl.co.ug

Company type

Private

Founded year

1972

Operating status

Operating

Headcount range

51–100 employees

Short description

Uganda Development Bank is Uganda's national Development Finance Institution, providing long-term loans, equity, asset finance, and trade finance to private enterprises, cooperatives, and farmer groups in priority sectors including agriculture, manufacturing, tourism, health, and infrastructure.

Ownership category

akta.pro rank

Product category

Development Finance

NAICS

Commercial Banking (52211)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), National Commercial Banks (6021)

akta.pro primary industry

National Development Banks & State Development Finance Institutions (DFIs) (BPADACAC)

akta.pro secondary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

Keywords

• Development finance
• Term loans
• Equity investment
• Trade finance
• Asset finance

Headquarters

HQ city

Kampala

HQ country

Uganda

HQ region

Africa

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Interest Income on Loans: UDB provides term loans with varied tenors of up to 15 years, generating interest income as the primary revenue stream. The Bank offers competitive interest rates designed to reduce the cost of credit to the private sector.
2. Equity Investment Returns: UDB makes equity investments in projects demonstrating high socio-economic impact potential, generating returns through dividend income and capital appreciation.
3. Trade Finance: UDB provides trade finance facilities including letters of credit and financing for import transactions, generating fees and interest income.
4. Asset Finance: UDB provides asset finance solutions for equipment, plant, and machinery acquisition, generating interest and fees.
5. Business Advisory Fees: Non-financial services including business accelerator programs, project preparation, and enterprise development services, potentially generating advisory fees.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels9 records

Core offering

UDB is a wholesale Development Finance Institution providing financial and non-financial solutions to registered business enterprises, cooperatives, and farmer groups in Uganda. Core offerings include term loans (up to 15 years), equity investments, asset finance, trade finance, farmer group financing, and specialized intervention products (SME Kazi Loans, Women Prosper Loans, Youth Step-Up Loans), supported by advisory services such as BASE and TESS.

Product overview

Uganda Development Bank operates as a wholesale Development Finance Institution (DFI) providing a comprehensive suite of financial and non-financial products. The core financial products include Term Loans (up to 15 years), Equity Investment, Asset Finance, Farmer Group Financing, and Trade Finance. UDB also offers specialized intervention products under its Special Programs initiative launched in 2022, including SME Kazi Loans, Women Prosper Loans (for women-owned enterprises), and Youth Step-Up Loans. The non-financial portfolio comprises Business Accelerator for Sustainable Entrepreneurship (BASE) for enterprise capacity building, Transaction and Enterprise Support Services (TESS) for transaction structuring, and Project Preparation Support. In 2023, UDB launched a UGX 50 Billion Climate Finance Facility for green investments and partnered on the AgriConnect fintech platform for smallholder farmers. The Bank supports priority sectors including Agriculture, Tourism and Hospitality, Manufacturing, Human Capital (Health and Education), and Infrastructure.

Differentiator

Problem solved

Functional benefit

Products and services

• Term Loans Long-term loan facilities with tenors of up to 15 years designed to support capital-intensive projects in priority sectors including agriculture, manufacturing, and infrastructure for registered private sector enterprises.
• Equity Investment Equity capital participation in private sector projects demonstrating high socio-economic impact, providing patient capital for startups and growing enterprises in priority sectors.
• Asset Finance Financing solution for acquisition of equipment, machinery, vehicles, and other capital assets required for business operations and expansion, generating interest and fee income.
• Trade Finance Financing facilities supporting import and export transactions, including letters of credit and trade-related credit lines for eligible enterprises engaged in international trade.
• Farmer Group Financing Specialized financing model designed for agricultural cooperatives and farmer groups, enabling access to credit for inputs, improved breeds, mechanization, irrigation, and post-harvest handling in primary agriculture.
• SME Kazi Loans Specialized loan product for Small and Medium Enterprises (SMEs) providing loans as low as UGX 50 million for tenors of 1 to 6 years, with interest rates of 10% to 12% per annum for working capital and business expansion.
• Women Prosper Loans Targeted financing for women-owned/led enterprises where ownership exceeds 50%, requiring at least 30% women on the board and in senior management; credit ranges from UGX 100 million to UGX 900 million for tenors from 18 months to 8 years.
• Youth Step-Up Loans Credit facilities designed to support youth entrepreneurs and youth-owned businesses in accessing affordable financing for business expansion and asset acquisition under the Special Programs initiative.
• Business Accelerator for Sustainable Entrepreneurship (BASE) Non-financial support service preparing enterprises to be credit-ready through business advisory, capacity building, training, and technical support in management, governance, and financial planning.
• Transaction and Enterprise Support Services (TESS) Advisory and support services helping clients structure and execute complex financial transactions, ensuring alignment with strategic objectives and risk management requirements.
• Project Preparation Support Technical assistance for project development, feasibility studies, and business planning to prepare projects for financing under UDB's mandate.
• UGX 50 Billion Climate Finance Facility Green finance facility launched in April 2023 to promote green economy investments, supporting renewable energy, climate-smart agriculture, and sustainable infrastructure projects.
• AgriConnect Digital Platform Financial technology solution developed in partnership for smallholder farmers, described as the first digital solution offering both financial and non-financial services with digital loans targeting 18,000+ farmers in Uganda.

Quantifiable outcome

• 51,841 jobs created and maintained in 2023 through supported projects
• +7 more outcomes

Named customers10 records

Segments7 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Seven partnerships are on record, tiered flagship and core.

• Africa50flagshipStrategic or Co-development Partner · 10 March 2026POWERGRID announced expansion internationally through a partnership with Africa50 and Uganda Development Bank. Partnership aims to develop transmission infrastructure in Uganda.
• Power Grid Corporation of India Limited (POWERGRID)flagshipStrategic or Co-development Partner · 10 March 2026POWERGRID is expanding internationally through a partnership with Africa50 and Uganda Development Bank to develop transmission infrastructure projects in Uganda.
• United Nations Development Programme (UNDP)coreStrategic or Co-development Partner · 13 November 2025UDB partnered with UNDP and Kabale University to launch an incubation centre to boost value addition and market access for farmers in Kigezi region.
• Kabale UniversitycoreStrategic or Co-development Partner · 13 November 2025Partnership with UDB and UNDP to launch an incubation centre supporting farmers in Kigezi with value addition and market access.
• Ministry of Water and Environment (Uganda)coreStrategic or Co-development Partner · 5 November 2025UDB signed MOU to formalize partnership promoting Uganda's investment opportunities at COP30, highlighting bankable climate-aligned projects in renewable energy, climate-smart agriculture, sustainable infrastructure, and green manufacturing.
• Uganda Women Entrepreneurs Association Limited (UWEAL)coreStrategic or Co-development Partner · 1 January 2024Strategic partnership under the Business Accelerator for Sustainable Entrepreneurship (BASE) initiative to bridge gaps in women's access to finance and business management best practices. In 2024, 30 projects were supported.
• Chemonics-SIAcoreStrategic or Co-development Partner · 1 January 2024Partnership under BASE initiative for funding women and SMEs. Supported 30 projects in 2024.

Scale indicators16 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• Development Bank of South Africa (DBSA): South Africa's national development finance institution providing infrastructure and development financing to public and private sectors. Highly comparable mandate and product set (project finance, SME funding, regional development) to UDB's wholesale DFI role in Uganda.
• Bank of Industry (BOI) Nigeria: Nigerian federal development finance institution providing long-term financing, working capital, and intervention funds to manufacturing, agriculture, and SMEs. Closest direct peer to UDB in terms of national DFI mandate, sector focus, and product mix.
• Development Bank of Ethiopia (DBE): Ethiopia's state-owned development bank providing term loans, trade finance, and project finance to priority sectors. Operates a similar wholesale DFI model aligned with national development priorities, making it a strong regional peer.
• Kenya Development Corporation: Kenya's national development finance institution providing long-term capital, equity, and advisory services to industrial, agricultural, and infrastructure projects. Directly comparable DFI mandate and product portfolio to UDB.
• Tanzania Investment Bank (TIB): Tanzanian state-owned development finance institution offering term loans, equity, and trade finance to priority sectors including agriculture and manufacturing. Comparable DFI mandate and East African regional context to UDB.

Broad incumbents

• Industrial Development Corporation (IDC) of South Africa: Much larger South African state-owned DFI providing finance across industrial sectors, mining, and infrastructure. Operates a broader portfolio with deeper capital base, offering scale comparison for UDB's potential trajectory.
• African Development Bank (AfDB): Continental multilateral development bank that provides funding lines and co-financing to UDB and other African DFIs. Operates one level up as a wholesale funder and capacity builder for institutions like UDB.
• Trade and Development Bank (TDB): Multilateral trade and development bank serving Eastern and Southern Africa with project, trade, and infrastructure finance. Comparable product mix (trade finance, project finance, SME support) and an active engagement partner with UDB.

Regional players

• National Development Bank of Rwanda (BDF Rwanda): Rwanda's national development bank focused on SME financing and private sector development. Comparable wholesale DFI mandate within the East African region, though focused on the Rwandan market.

Others

• Arab Bank for Economic Development in Africa (BADEA): Pan-African Arab development finance institution that is one of UDB's largest funding partners (USD 150M 2025, USD 20M 2022 line). Ecosystem participant and supplier of wholesale capital rather than a direct competitor.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/udbltd
• YouTubeyoutube.com/@ugandadevelopmentbanklimited
• Facebookfacebook.com/ugandadevelopmentbank
• LinkedInlinkedin.com/company/uganda-development-bank

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds2 records

Investors2 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Uganda Development Bank