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UDB Earmarks Shs70bn For Five Strategic Sectors

Uganda Development Bank Limited (UDBL) has announced five strategic sectors to enhance their target of achieving the 2nd Development Plan.

Speaking at the breakfast meeting held at the Hotel Africana on

Thursday, Patricia Ojangole, the UDBL CEO said that the bank has approved Shs70bn to finance key economic sectors.

“UBDL will play a lead role in financing and advisory in five strategic areas. These include agriculture, tourism, oil and gas and infrastructure development,” she said, adding that so far over 19,000 (directly and indirectly) workers have been supported in 2016 and the value of social, economic impact for the preferred sectors is estimated at Shs4 trillion if the sectors are financed up 90%.

Ojangole explained that by 2020, if the key 5 sectors are financed and implemented effectively will lead to an average growth rate of 6.3%.

She said interest rates will vary between 7% and 10%.

Mohamoud Andama , the Manager- Business Development at UDBL  pointed out that the preferred mode of funding will be through project financing and over 150 projects will be targeted in the priority sectors.

The bank has also introduced new products among them include Asset and Equity Financing, where the bank will peg its equity investment to 20% to 25% of the total investment.

The government of Uganda promised to capitalize the bank to the tune of Shs500bn, starting with Shs50bn in financial year 2016/17.

 

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