July 7, 2022 – Kampala, Uganda. The Uganda Development Bank, the country’s national development finance institution, has released its 2021 Direct Impact Report highlighting the fundamental role the Bank continues to play in Uganda’s sustainable socio-economic transformation and growth. .
This direct impact report reflects the UDB’s work and coverage of job creation, value of production, foreign exchange and taxes generated by Bank-supported businesses.
“In the meantime, the Bank’s investment has created and maintained a total of 41,338 jobs, and a total output value of UGX 2.445 billion has been realised. This production value contributed UGX 84 billion in tax revenue to the government and foreign exchange revenue of UGX 405 billion,” the report states in part.
The share of jobs created and maintained by sector was highest in agribusiness at 41%, followed by primary agriculture at 30%. The manufacturing, infrastructure and tourism sectors contributed 17%, 6% and 3% respectively, while other Bank-supported sectors, including health and education, accounted for 4%.
Of the total value of production reported in 2021, the agri-food processing sector contributed 42%, followed by manufacturing at 33% and primary agriculture at 17%. Other sectors contributed; Infrastructure – 3%, health – 3% and tourism – 2%.
The Bank, through its investments, continues to facilitate the growth of a dynamic and sustainable private sector. Businesses financed by the UDB have generated profitability amounting to UGX 314 billion. Until 2021, the highest profits were recorded by companies in the manufacturing sector which contributed 39%, followed by agribusiness at 32% and 21% from the primary agriculture sectors respectively. The tourism and health sectors contributed 4% and 2% respectively.
Among reported tax contributions, the manufacturing sector contributed the highest share at 45%. This is followed by agro-industry at 25%, primary agriculture at 23% and 3% for infrastructure and tourism, respectively. The health sector contributed 1% of the total share of declared tax revenue, while the education sector contributed nothing given the effect of the containment measures related to the Covid-19 pandemic. 19.
The share of foreign exchange earnings among businesses was highest in the agro-industrial sector at 50%, followed by the manufacturing sector at 33%. Health contributed 14% of foreign exchange revenue contributions.
In line with the Bank’s efforts to democratize economic participation, the DI report positively notes that more than 30% of businesses financed by the UDB are owned by women. The dedicated financing program for women and youth known as special programs launched in 2021 will however be expanded to reinforce these objectives as women and youth together constitute the most active segments of the economy as well as the most numerous.
“These results reflect the Bank’s sustained contribution to the economy, increasing the production of essential commodities amid the shock of the COVID-19 pandemic which has affected all sectors, increased the cost of living and disrupted the world trade and markets. This Direct Impact Report 2021 demonstrates that UDB’s presence in the economy has had an overall positive impact,” said Dr. Francis Mwesigye, Director of Economic Research and Knowledge Management at Uganda Bank of development when the report was launched.
“I want to thank our customers, with whom we partner to achieve these results. I reiterate our commitment as the UDB to fulfilling our mandate by deliberately focusing our efforts on interventions that create lasting impact, thereby improving the quality of life of Ugandans.
The Direct Impact Report tracks the socio-economic footprint of the Bank against its Strategic Plan and the country’s national development priorities. In addition, the Bank examines its high-impact goals that are aligned with holistic sustainability, inclusion, community development, and environmental protection.