The Uganda Development Bank (UDB), the nation’s Development Finance Institution (DFI), is intensifying its efforts to secure essential resources for the country’s socio-economic transformation.
This was highlighted this week by a high-level engagement with the OPEC Fund for International Development (OFID), which promises a substantial deepening of their longstanding partnership.
The discussions, which included Dr. Patricia Ojangole, the Managing Director of UDB, the OFID team led by Shaimaa Al-Sheiby, the Vice President of Public Sector, and Luiscela Morena, the Director of Latin America and the Caribbean Public Sector Strategy, centered on aligning future collaborations with OFID’s new Strategic Plan and Uganda’s development priorities.
Pathway to a 5th Line of Credit
The most significant outcome of the meeting was the in-principle agreement to explore a 5th line of credit from OFID to UDB. This potential new financing injection is explicitly aimed at supporting Uganda’s sustainable development priorities through increased access to affordable financing.
It’s important to note that OFID has been a consistent partner to Uganda over the years, with its portfolio in the country including support for energy, transportation, and financial sector development.
Notably, the Fourth Line of Credit to UDB was approved by OFID in September 2023. The progression toward a fifth facility reaffirms OFID’s confidence in UDB’s operational capacity and its mandate to drive national development.
According to Dr. Ojangole, “the funds from such a facility would be channelled by UDB into key sectors of the Ugandan economy, including Primary Agriculture, Agro-processing, and Manufacturing, which collectively account for the bulk of UDB’s investment portfolio.”
She noted that by increasing the availability of affordable financing, UDB can empower the private sector to create jobs, boost local production, and contribute significantly to tax revenues and foreign exchange earnings.
Alignment with New Strategic Plans
A crucial element of the renewed collaboration is OFID’s commitment to partner with UDB under its new Strategic Plan. This alignment ensures that the mobilised resources are strategically deployed for maximum impact.
The engagement reaffirms UDB’s continued efforts to strengthen partnerships with international development finance institutions to mobilise resources that drive socio-economic transformation. These meetings reflect UDB’s proactive strategy to leverage global expertise and financial backing to deliver on national development priorities.
As OFID’s Vice President Al-Sheiby, an experienced figure in climate and development finance, leads the public sector strategy, the future collaboration is likely to emphasise sustainable and inclusive growth.
For UDB, this partnership is vital for achieving its mission, which is to accelerate sustainable socio-economic transformation through innovative financial and non-financial solutions.
The Bigger Picture
This engagement is part of a broader push by UDB to secure external financing. By mobilising strategic resources and affordable financing from global partners like OFID, UDB is better positioned to overcome domestic funding limitations and accelerate Uganda’s industrial development and inclusive growth agenda.
The commitment from a prestigious international DFI like OFID thus provides a strong vote of confidence in Uganda’s financial architecture and its long-term development trajectory.