Uganda’s economic backbone is unequivocally its Small and Medium-sized Enterprises (SMEs). Accounting for a staggering 90% of the country’s private sector and contributing over 75% to its Gross Domestic Product (GDP), these vibrant businesses are the primary engines of job creation and poverty alleviation.
Recognising this immense potential, the Uganda Development Bank (UDB) is positioning itself as a vital catalyst for national prosperity, offering comprehensive support that aligns seamlessly with Uganda’s National Development Plan.
According to Mahamoud Andama, the Director of Investments at UDB, the bank is deeply committed to improving the quality of life for Ugandans through both sustainable financial and non-financial solutions.
This commitment, Andama stresses, is particularly evident in their strategic focus on SMEs.
“At UDB, we believe SMEs are the engine of Uganda’s growth, and we’re here to fuel their journey,” states Andama, emphasising the bank’s proactive approach. This, Andama notes, isn’t merely about disbursing funds; it’s about building a resilient and capable entrepreneurial ecosystem.
Robust SME Programme
Andama points out that one of UDB’s standout initiatives is its SME capacity-building program. This non-financial intervention, he reveals, is meticulously designed to equip entrepreneurs with practical skills vital for every stage of their business journey: from starting new ventures to strengthening existing ones and ultimately scaling up their operations.
By focusing on critical areas such as financial literacy, business planning, governance, and market access, Andama says UDB ensures that entrepreneurs are not just receiving capital, but also the knowledge and tools to utilise it effectively.
This comprehensive support significantly enhances the bankability of these businesses, preparing them to successfully access tailored financing solutions.
Alignment with National Development Goals
UDB’s unwavering support for SMEs is perfectly synchronised with Uganda’s overarching National Development Plan (NDP).
The NDP identifies the private sector, particularly SMEs, as crucial for achieving socio-economic transformation, industrialisation, and job creation. For instance, by bolstering SMEs, UDB directly contributes to:
Job Creation
SMEs are the largest employers in Uganda. UDB’s support, both financial and non-financial, enables these businesses to expand, leading to the creation of more decent jobs, especially for the youth and women.
Poverty Eradication
Increased profitability and stability among SMEs translate directly into higher household incomes, lifting families out of poverty and fostering economic resilience at the grassroots level.
Diversification and Value Addition
By building the capacity of SMEs, UDB encourages diversification within the economy and promotes value addition, particularly in sectors like agriculture and manufacturing, which are central to Uganda’s long-term vision.
Inclusive Growth
UDB’s focus on sustainable solutions ensures that economic growth is not confined to urban centres but extends to rural areas, empowering a broader spectrum of the population.
In essence, UDB’s strategy goes beyond just providing capital. It’s about nurturing an entrepreneurial spirit, bridging knowledge gaps, and ensuring that Uganda’s most vital economic segment, its SMEs, are robust, competitive, and well-equipped to drive the nation towards its ambitious development goals.
Through these integrated efforts, Uganda Development Bank is proving to be an indispensable partner in realising a prosperous and sustainable future for all Ugandans.