Uganda Development Bank Limited
TypeParastatal
IndustryFinance
Founded1972 (1972)
HeadquartersFirst Floor, Rwenzori Towers
6 Nakasero Road, Nakasero
Kampala, Uganda
Key people
Felix Okoboi
Chairman
Patricia Adongo Ojangole
Chief Executive Officer
ProductsLoans, equity partnerships, financial advisory services, management services, export/import finance
RevenueIncreaseAftertax:USh 38.8 billion (US$10.3 million) (2021)[1]
Total assetsUSh 1.44 trillion (US$383.57 million) (2022)[2]
OwnerGovernment of Uganda
Number of employees
88 (2020)[1]
WebsiteHomepage

The Uganda Development Bank Limited (UDBL) is a government-owned development bank in Uganda.[3]

Overview

UDBL which began operating in 1972, was the first development finance institution established by the government of Uganda. The main objective of UDBL is to promote and finance development in various sectors of the economy with particular emphasis on agriculture, industry, tourism, housing, and commerce.[3]

In June 2018, the government negotiated for a $20 million (USh 76 billion) loan from the African Development Bank to capitalize UDBL, primarily to lend to the agricultural sector for mechanization and value addition.[4]

As of December 2021, shareholders' equity was USh 1.055 trillion (US$280 million).[1]

As of December 2022, UDBL's total assets were valued at USh 1.44 trillion (US$383.57 million). [2]

History

UBDL was established in 1972. The political leadership in Uganda changed in 1979, and UDBL was then able to obtain large credits from external financiers, like the African Development Bank, the International Development Association, the European Investment Bank, the European Economic Community, the Organization of Petroleum Exporting Countries, and the Arab Bank for Economic Development in Africa (Banque Arabe pour le Développement Economique en Afrique) (BADEA).[5] With these funds, UDBL's focus shifted to financing medium and long-term projects in agriculture,[6] manufacturing, and tourism.[1] Between 1997 and 2001, the bank was restructured, recapitalized, and re-organized as a limited liability company, wholly owned by the government of Uganda.[7]

Future plans

As of September 2013, the bank had re-organized and repositioned itself to play a larger and more visible role in Uganda's development finance. It has developed a medium-term recapitalization plan (2013-2017) that will increase shareholder's equity from the current USh 100 billion (US$40 million), to USh 500 billion (US$200 million).[8][9]

Its growth plan has been streamlined to harmonize with Uganda's National Development Plan (NDP) and with Vision 2040. Vision 2040 aims to transform Ugandan society from a peasant population to a modern and prosperous country by the year 2040. Some of the development partners that UDBL is working with include the Kuwait Fund, the African Export-Import Bank, BADEA, and the Islamic Development Bank.[5]

In June 2020, the Uganda Ministry of Finance, Planning and Economic Development, announced its intention of further increase its share capital in UDB from USh 500 billion (US$136 million) to USh 2 trillion (US$545 million). This is part of the bank's five-year strategic plan 2020–2024.[10]

Services

UDB's services include short-term loans, medium term loans, long-term loans, equity investments, trade finance loans, and bank guarantees.[11]

Rating

In February 2019, Fitch Ratings assigned UDB a rating of B+ (stable outlook).[12]

Board of directors

As of August 2018, UDBL's board of directors consisted of:[1] 1. Felix Okoboi: Chairman[13] 2. John Byaruhanga 3. Frank Tumuheirwe:[13] 4. Nimrod Waniala 5. Henry Balwanyi Magino 6. Silvia Angey Ufoyuru 7. Patricia Ojangole - Managing Director.[13]

Management

As of August 2017, UDB's management team was:[14] 1. Patricia Ojangole: Managing Director 2. Joshua Allan Mwesiga: Director, Strategy & Corporate Affairs 3. Denis Owens Ochieng: Director of Finance & Business Operations 4. Mahamoud Andama: Director Investment 5. Stephen Hamya: Chief Internal Auditor 6. Sophie Nakandi: Bank Secretary/Head Legal.[14]

Controversy

According to a 2013 published report, an audit by Uganda's auditor general revealed financial impropriety by board members and senior managers at UDBL, leading to financial loss. Both the board and management team involved in the fraud have been terminated and the investigation continued as of June 2014.[15][16][17][18]

See also

References

  1. 1 2 3 4 5 Uganda Development Bank (6 April 2022). "Financial Statement As of 31 December 2021" (PDF). Uganda Development Bank. Kampala, Uganda. Retrieved 11 August 2022.
  2. 1 2 Abdusalam Kigozi (13 February 2023). "UDB Posts Strong Growth Forecasts Economic Rebound In 2023/". ChimpReports. Kampala, Uganda. Retrieved 1 April 2023.
  3. 1 2 UDBL (11 April 2016). "Uganda Development Bank Limited: About Us - Overview". Kampala: Uganda Development Bank (UDBL). Retrieved 11 April 2016.
  4. ↑ Stephen Otage (19 June 2018). "Islamic banking starts in October, says Finance". Daily Monitor. Kampala. Retrieved 20 June 2018.
  5. 1 2 Kulabako, Faridah (9 July 2013). "Uganda Development Bank to shift its market interest". Daily Monitor. Kampala. Retrieved 4 August 2016.
  6. ↑ Moses Mugalu, and Samuel Kayiwa (6 March 2015). "Uganda Development Bank to Focus On Agriculture Market". The Observer (Uganda) via AllAfrica.com. Kampala. Retrieved 3 August 2015.
  7. ↑ Kamukama, Eronie (15 March 2017). "'Uganda Development Bank prepared to float on its own'". Daily Monitor. Kampala. Retrieved 20 June 2018.
  8. ↑ Otagec, Stephen (2 October 2013). "Bank Lowers Interest Rates On Agriculture Loans". Daily Monitor. Kampala. Retrieved 22 November 2014.
  9. ↑ Tajuba, Paul (23 February 2015). "UDB Gets Shs500 Billion To Boost Capital Base". Daily Monitor. Kampala. Retrieved 1 May 2015.
  10. ↑ Martin Luther Oketch (3 June 2020). "UDB Unveils 5-year Plans". Daily Monitor. Kampala. Retrieved 16 July 2020.
  11. ↑ UDB (1 January 2015). "Uganda Development Bank: Services". Uganda Development Bank (UDB). Retrieved 11 June 2015.
  12. ↑ Martin Luther Oketch (13 February 2019). "Fitch assigns UDB stable outlook". Daily Monitor. Kampala. Retrieved 13 February 2019.
  13. 1 2 3 Uganda Development Bank (4 September 2018). "Notice from UDB: Board Appointments". New Vision. Kampala. Retrieved 4 June 2020.
  14. 1 2 Uganda Development Bank (August 2017). "Our Management Team". Kampala: Uganda Development Bank. Retrieved 4 August 2017.
  15. ↑ Mukiibi Sserunjogi, Eriasa (5 January 2013). "Audit Reveals Further Rot In Uganda Development Bank". Daily Monitor (Kampala). Retrieved 29 June 2014.
  16. ↑ Kakaire, Sulaiman (19 November 2013). "Uganda: Development Bank Faces Probe Over Sh20 Billion Loan". The Observer (Uganda) via AllAfrica.com. Retrieved 29 June 2014.
  17. ↑ Katunzi, Pius Muteekani (19 April 2014). "Uganda: UDBL - How The Bad Guys Derailed The IGG". The Observer (Uganda) via AllAfrica.com. Retrieved 29 June 2014.
  18. ↑ Wesaka, Anthony (30 June 2014). "UDB's Ojangole Acquitted". Daily Monitor (Kampala). Retrieved 30 June 2014.

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