By: D E Wasake, Principal,

Basic information


Established entity (with at least 3 years of audited accounts and loan security).

Sector focus:

All key sectors of the Ugandan economy including: (but not limited to) commercial agriculture and agro processing, manufacturing, tourism and housing.

Amounts provided:

Minimum Shs. 50m

Funding type

Loans (and potentially equity) at lower than market rates comprising:

·         Short term (up to 2 years)

·         Medium (3-5 years) and

·         Long term loans (over 5 years)

Key criteria

·         Institutional capacity i.e experienced team and established entity with capacity to undertake project.

·         Regulatory and Statutory Compliance (e.g licenses, permits etc)

·         Proof of feasibility of project (technical and commercial)

·         Security offered

·         Environmental, Social and Economic Development Impact

Further information

Tel: +256(41)4355 550/4355 555


Who is behind the Bank?

UDB was established by government decree in 1972. It is now a limited company 100% owned by the government of Uganda.

The bank currently provides loans at a lending rate of 15% with a minimum threshold of sh50m. The commercial bank lending rate at January 2013 was 24.22% (source: BOU)

What is the process like?

  1. Submit an application form. This is available at UDB offices (not currently available on website). The details of the requirements are here:
  2. Loan committee. A loan approval/credit committee typically vets the application and then submits to the board a project for final approval (I can expect this is dependent on the amounts involved)
  3. Board approval .The board (which meets periodically) then finally approves the loan for disbursement. 

Our tips for success?

  1. Use a specialist consultant. One who understands the process to assist in the business plan documentation. Because of the loans being below market rate, you can expect the competition for them will be high. Your consultant will need to help you for example demonstrate how your proposed project would meet government’s National Development Plan (NDP) or Vision 2040. These are both available on the UDB website:

  1. Team. You can expect that UDB will be looking for high impact and large scale projects to finance. Your team’s experience (and tied to that capacity of company) are therefore key in particular the “numbers” and “technical” guys. You cannot expect to convince the management and board (who are all very experienced persons) that your project will be successful without a strong team. Hopefully however this is not a key concern as the loans are typically for already established companies.

Otherwise best of luck!  If you need assistance, contact our team


Inachee is not an agent or connected to this entity. It is an independent thought leadership and advisory firm. The information provided is based on our research, experience and in many cases by speaking to this entity’s personnel. Whilst we have taken steps to ensure the accuracy of the information presented here, there can be no guarantee that it will remain accurate.