Frequently Asked Questions (FAQs)

Uganda Development Bank Ltd (UDB) is a non-deposit-taking Development Finance Institution (DFI). We provide innovative financial and non-financial solutions to projects that are identified as having a significant, positive socio-economic impact in alignment with the Government of Uganda’s development agenda as provided in the current National Development Plan III.

It is capitalized by its shareholder, the Government of Uganda and augmented by various development partners and agencies.

UDB is fully government-owned, represented in its shareholding by the Minister of Finance, Planning and Economic Development and the Minister of State for Privatization and investment.

UDB finances projects in the following sections;

  1. Agriculture (From primary agriculture – Agro-processing) -Acquisition of: Inputs, improved breeds & crop varieties, Improved farm methods e.g., mechanization, Irrigation technology and post-harvest handling.
  2. Tourism and Hospitality – (Accommodation facilities (within the tourism belt), Purchase of specialized tourist transport facilities & equipment and working capital needs.
  3. Manufacturing – (Equipment, plant & machinery for manufacturing and Construction of factory premises and working capital facilities)
  4. Human Capital (Health and Education) – (Acquisition of: Hospital and Health facility construction and expansion, medical equipment, Scholastic, laboratory or other specialized educational equipment, Student shuttles and/or other vehicles for school operations, School Construction and Expansion)
  5. Infrastructure – (Support interventions to: Improve the capacity/competitiveness of local contractors, Private sector investment in infrastructure development projects e.g., construction of solar and mini hydro plants and Expansion of ICT infrastructure)

We have a wide range of products and services to both financial and non-financial including;

Financial Products

  1. Term loans with varied tenors of up to 15 years.
  2. Equity investment
  3. Asset finance
  4. Farmer group financing model
  5. Trade Finance


To cater for the underserved sections of the population, UDB recently launched products specifically tailored for women, SMEs, and the youth to include;

  1. SME Kazi Loans
  2. Women Prosper Loans
  3. Youth Step-Up Loans


Non-Financial Products are aimed at preparing enterprises to be credit ready ensuring their sustainability.

  1. Business Accelerator for Sustainable Entrepreneurship
  2. Project preparation
  1. Every Ugandan registered business enterprise engaged in an existing or start-up business qualifies for UDB products and services if the business falls in the UDB defined priority sectors.
  2. Applicants must be incorporated entities, Co-operatives, or registered farmer groups.

UDB is a Development Finance Institution therefore a Policy Bank that is used by the government to address specific market gaps in the financial system. The current policy direction through UDB is to reduce the cost of credit to the private sector to spur private sector growth, provide long term financing, provide financing to key economic sectors that are perceived risky by commercial banks and provide financing to start-ups that may not be funded by commercial banks.

No, UDB and commercial banks do complement each other in different ways including;

  1. Loan syndication or co-financing where UDB can provide long-term capital while Commercial Banks provide short-term financing instruments.
  2. UDB can provide equity to start-ups while commercial banks provide debt at some growth stage.
  3. De-risk projects, sectors, regions after which can attract private capital.
  4. Commercial Banks hold deposit accounts for UDB that are used for collections of repayments from UDB clients.
  5. UDB like any company utilizes all the services of commercial banks like transactions processing, Letters of Credit, payments processing among others.

No, UBD is a wholesale Financial Institution and does not provide retail banking services.

  • Facility Application Letter (on official company letterhead) and Board resolution to borrow.
  • A copy of the detailed Business Plan and or feasibility study with Cash flow projections and projected financial statements.
  • A copy of each of the last 3 years audited/ accounts (from an ICPAU/ BOU listed audit firm) for existing business.
  • Full Details of security proposed for the facility sought (where applicable).
  • Bank and Loan statement for the last twelve months (Facility agreements for any existing facilities, with status).
  • Copy of National Environment Management Authority Certificate of Application and an Environmental Impact Assessment report) (where applicable).
  • Credit Reference Bureau Report of the company & all its shareholders/ directors (where applicable) and/or CRB numbers.
  • Proof of NSSF compliance for companies employing more than 15 people.
  • Copy of Investment License (where applicable).
  • Latest Returns of Directors and Shareholders.
  • Statutory licenses from relevant Ministry/GOU agency where applicable (schools, universities, exporters, hospitals, power plants).


For any inquiry, complaint or suggestion, you may contact us directly through the following channels;


Call: 256 414 355 550 /256 312 355 500

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