Uganda’s drive toward industrialisation and inclusive economic transformation has received a lift after the Uganda Development Bank secured a €40 million (Shs170 billion) financing facility from the Agence Française de Développement.
The long-term concessional funding, signed on Monday at UDB headquarters in Kampala, underscores growing international confidence in the Bank’s expanding role as a catalyst for sustainable development. The agreement was formalised by AFD Country Director Marc Trouyet and UDB Managing Director Patricia Ojangole, with Virginie Leroy witnessing the ceremony.
In addition to the principal financing, the package includes €800,000 in technical assistance, approximately Shs3.4 billion, to strengthen institutional capacity, project preparation, and risk management frameworks.
The facility comes at a critical moment as Uganda intensifies efforts to deepen value addition, enhance enterprise competitiveness and widen economic participation. Structured as patient capital, the funding is designed to support priority sectors that require long term investment to unlock productivity, create jobs and drive structural transformation.
UDB is currently in the second year of implementing a broader institutional strategy that extends beyond traditional lending. The Bank has expanded its mandate to include transaction advisory services, deal structuring, and mobilisation of blended finance from local and international partners, positioning itself as a central development finance anchor.
Speaking at the signing ceremony, Ojangole described the partnership as strategic leverage rather than a liquidity injection.
“We are deeply grateful to AFD for their trust and shared vision,” she said.
She added,“This support enhances our ability to respond to Uganda’s environmental and social challenges in a structured and measurable way, particularly by expanding access to finance for underserved groups such as women and youth. Financial inclusion is essential in tackling structural inequalities and broadening economic opportunity.”
The new line of credit is expected to scale up UDB’s financing of transformative projects across agriculture, manufacturing, infrastructure, and small and medium enterprises. It will also support climate resilient investments and strengthen agricultural value chains, SACCOs, and agribusinesses that remain central to Uganda’s long term growth agenda.
Ambassador Leroy reaffirmed France’s commitment to Uganda’s economic ambitions, noting that the collaboration reflects sustained bilateral cooperation aimed at supporting Uganda’s journey toward middle income status through green industrialisation and innovation.
Trouyet added that the partnership is anchored on a triple impact approach.
“Our cooperation seeks to deliver social impact through enhanced financial inclusion for women and youth led enterprises, economic impact by strengthening productive sectors and enterprise competitiveness, and climate impact through investments in climate smart agriculture and resilient infrastructure,” he said.
The AFD and UDB agreement reinforces development finance as a strategic instrument for systemic change, aligning international partnership with Uganda’s ambition to achieve resilient and inclusive economic growth.
