Uganda Development Bank (UDB) has reported a big rise in the economic and social impact of enterprises it financed in 2025, with supported businesses creating and sustaining 69,202 jobs and generating Shs6.26 trillion in annual output.
The figures are contained in UDB’s 2025 Development Impact Report launched on Monday, September 7, 2026, highlighting the contribution of development finance to employment, enterprise growth, government revenue, production and Uganda’s broader economic transformation.
According to the report, the 69,202 jobs recorded in 2025 represent a 24.6% increase from the 55,553 jobs created and maintained by UDB-supported enterprises in 2024, an additional 13,649 jobs in one year.
The report also shows that the enterprises financed by the bank increased their annual output by 3.4%, from Shs6.05 trillion in 2024 to Shs6.26 trillion in 2025, pointing to increased productive activity among businesses benefiting from UDB financing.
Profitability also improved, with the combined profits of UDB-supported enterprises rising by 9.1% from Shs1.06 trillion in 2024 to Shs1.16 trillion in 2025.
The stronger performance translated into increased tax contributions to Government. Tax generated by the businesses supported by UDB rose by 22.5%, from Shs316 billion in 2024 to Shs387 billion in 2025.
At the same time, foreign exchange earnings from UDB-supported enterprises surged by 66.5%, rising from Shs1.11 trillion in 2024 to Shs1.84 trillion in 2025.
The sharp increase in foreign exchange earnings points to growing competitiveness among Ugandan enterprises, particularly those operating in manufacturing, agro-processing and other export-oriented activities, while also strengthening the country’s capacity to earn foreign currency through production and exports.
The latest report builds on UDB’s wider expansion of development financing during the year. The bank approved Shs518.4 billion in new financing for 120 projects and disbursed Shs502.2 billion, a 29% increase in disbursements compared with 2024.
About 64% of the financing approved by UDB was directed towards agriculture, agro-industrialisation and manufacturing, sectors the bank considers critical to increasing production, promoting value addition, creating employment and reducing Uganda’s dependence on imported goods.
The bank’s reach also expanded, with its active customer base growing to 689 enterprises operating across 105 districts, up from 524 enterprises in 92 districts the previous year. UDB’s direct borrowers increased to 112,392, according to the bank’s 2025 performance report.
The development impact was not limited to the number of jobs created. UDB’s impact reporting indicates that 73% of the jobs created and maintained by its supported enterprises were held by young people, while women accounted for 39% of the jobs, underscoring the role of development finance in widening participation in productive economic activity.
The bank’s 2025 financing is also expected to generate a further wave of economic activity. Projects approved during the year, once fully implemented, are projected to create more than 33,600 additional jobs, generate about Shs5.2 trillion in additional output and contribute approximately Shs918.7 billion in tax revenues.
Beyond lending, UDB continued to expand its support for early-stage and innovative enterprises, including investments in businesses involved in manufacturing, digital tourism and electric mobility. The bank also continued efforts to direct capital towards technological and green transformation as part of its broader development finance mandate.
The impact report comes against the backdrop of a stronger balance sheet at UDB. During 2025, the bank’s total assets increased by 27% to Shs2.26 trillion from Shs1.78 trillion, while total equity grew by 24.8% to Shs1.89 trillion. Gross loans increased by 7.7% to Shs1.77 trillion, while net loans and advances rose by 6.6% to Shs1.63 trillion.
UDB also recorded a profit after tax of Shs63.4 billion, representing a 9.7% increase from Shs57.8 billion in 2024, while profit before tax rose by 25.2% to Shs91.6 billion.
Managing Director Dr Patricia Ojangole has said the bank’s role goes beyond providing credit, arguing that development finance is intended to unlock investment opportunities that conventional commercial financing may not adequately serve.
“Development finance delivers its greatest value when it unlocks opportunities that commercial markets alone cannot provide,” Ojangole said, adding that UDB’s investments are intended to strengthen productive enterprises, create jobs, expand value addition and improve incomes.
The bank’s results have also attracted Government attention, with Finance Minister Henry Musasizi commending UDB for translating public investment into measurable economic outcomes while calling for continued expansion of affordable, long-term financing to productive sectors.
Musasizi has emphasised that UDB’s performance should ultimately be measured by the real economic outcomes generated by the money it lends, including employment, increased production, stronger enterprises and broader private-sector growth.
The report therefore places UDB’s performance within the wider Government strategy of using development finance to strengthen Uganda’s productive capacity and accelerate economic transformation.
With agriculture, agro-industrialisation and manufacturing taking the largest share of its financing, UDB is positioning itself as a key source of long-term capital for enterprises expected to drive production, value addition, exports and employment.
The rise in jobs, output, profitability, tax revenues and foreign exchange earnings recorded by UDB-supported enterprises in 2025 provides a measurable picture of how development financing is feeding into the wider economy, while the pipeline of projects approved during the year points to further economic activity as those investments become fully operational.
