Uganda Development Bank (UDB) strengthened its financial position in 2025, recording substantial growth in assets and equity while expanding its financing to businesses and productive investments across the country.
The development finance institution’s total assets increased by 27% to UGX2.26 trillion in 2025, up from UGX1.78 trillion in 2024.
The growth was supported by increased Government capitalisation and financing from development partners, strengthening UDB’s ability to provide long-term capital to businesses operating in sectors critical to Uganda’s economic transformation.
Total equity rose 24.8% to UGX1.89 trillion, while net loans and advances increased 7% to UGX1.63 trillion. Gross loans reached UGX1.77 trillion, reflecting continued expansion of the bank’s lending portfolio.
The stronger balance sheet was accompanied by improved profitability.
UDB recorded a net profit after tax of UGX63.4 billion for the year ended December 31, 2025, a result Finance Minister Henry Musasizi described as evidence of prudent financial management and the bank’s continued commitment to Uganda’s development agenda.
The performance gives UDB greater capacity to finance investments that may not be adequately served by conventional commercial lending, particularly projects requiring longer repayment periods and significant upfront capital.
“Development finance delivers its greatest value when it unlocks opportunities that commercial markets alone cannot provide,” UDB Managing Director Dr. Patricia Ojangole said.
UDB approved UGX518.4 billion in new financing for 120 projects across the country during the year and disbursed UGX502.2 billion. The disbursements represented a 29% increase from 2024, pointing to stronger demand for long-term development financing among Ugandan enterprises.
The bank’s reach also expanded. By the end of 2025, UDB had 689 active enterprises operating across 105 districts, while direct borrowers increased to 112,392.
The figures indicate a broader geographical footprint for development finance and an expanding pipeline of businesses accessing capital for growth.
Government has identified UDB as a strategic institution for financing priority sectors, including agriculture, manufacturing, tourism, infrastructure and other productive activities considered essential to Uganda’s ten-fold economic growth strategy.
Musasizi said the continued financing of these sectors is central to expanding economic activity, strengthening enterprise development and supporting Uganda’s broader economic transformation.
Beyond financing, UDB said its investments enabled businesses to expand operations, modernise production, adopt new technologies and improve competitiveness.
This places the bank at the intersection of financial intermediation and industrial development, with the effectiveness of its lending ultimately measured by the businesses, jobs, exports and production it helps create.
The bank’s sustainability credentials also strengthened during the year. UDB received the Outstanding Business Sustainability Achievement Award at the 2025 Karlsruhe Sustainable Finance Awards in Germany. The recognition extended a record that includes four consecutive Sustainability Leader of the Year awards between 2021 and 2024.
Relatedly,the more significant story is the scale and direction of UDB’s balance-sheet expansion. The 27% increase in assets, combined with higher equity and growing loan disbursements, gives the institution a stronger platform to support private-sector investment.
The challenge now will be to convert that financial capacity into measurable economic returns including higher productivity, increased exports, job creation, stronger domestic enterprises and greater investment in productive sectors.
UDB’s 2025 results therefore point to a development financier growing in both scale and reach, with its expanding balance sheet positioning it to play a larger role in Uganda’s long-term economic transformation.
UDB 2025 performance at a glance: Total assets: UGX2.26 trillion; equity: UGX1.89 trillion; gross loans: UGX1.77 trillion; net loans and advances: UGX1.63 trillion; and profit after tax: UGX63.4 billion.