Museveni Urges Manufacturers and Agriculturalists to Tap Into Uganda Development Bank for Affordable Credit

President Yoweri Museveni has called on Ugandan business owners, particularly those in manufacturing and agriculture, to take advantage of affordable credit from the Uganda Development Bank (UDB) to fuel their growth. Museveni made the appeal during the launch of a new 600 MW hydropower project, raising Uganda’s total power generation capacity to over 2,000 MW, a significant jump from 380 MW in 2005.

“High-interest rates from commercial banks make it hard for businesses to profit. That’s why the government established UDB to provide affordable loans. Borrow from UDB, Emyooga, and the Parish Development Model (PDM), and stay away from money lenders. I will deal with those exploiting you,” Museveni said during the commissioning ceremony.

Museveni criticized money lenders as “criminals,” noting how they exploit vulnerable borrowers with unfair agreements disguised as sales. The President emphasized that addressing the high cost of credit is essential to modernizing Uganda’s key sectors—agriculture, manufacturing, services, and ICT—that are critical to driving the country’s economic growth.

The Ugandan government has prioritized these sectors through UDB, which offers support to agriculture, manufacturing, tourism, and infrastructure to advance the national development agenda. In 2023, UDB was capitalized with UGX 65 billion to support job creation, increase production output, enhance tax contributions, and boost foreign exchange. That same year, UDB disbursed UGX 610 billion, with a significant portion allocated to agro-industrialization (UGX 187 billion), manufacturing (UGX 211 billion), and primary agriculture (UGX 39 billion).

State Minister for Kampala and Metropolitan Affairs, Kabuye Kyofatogabye, echoed Museveni’s sentiments at a recent trade exhibition at the Namukekera-Liao Shen Industrial Park in Nakaseke district. The Minister urged entrepreneurs to utilize UDB’s affordable credit, warning against the misuse of government loan programs, which has led to challenges with repayment.

“UDB is offering low-interest loans, and I encourage you to take advantage. However, some borrowers abuse these programs by not using the funds as intended or making excuses to avoid repayment,” Minister Kyofatogabye said.

During the exhibition, UDB showcased several successful projects it funded, including EcoPlastile, which manufactures eco-friendly roofing tiles from recycled plastic waste, and Sanga VetChem Ltd, a producer of veterinary drugs. UDB’s support has enabled these companies to scale up production, create jobs, and contribute to Uganda’s tax base.

In 2023, enterprises funded by UDB contributed UGX 236 billion in domestic taxes, with manufacturing accounting for 47%, agro-processing 27.9%, and agriculture 15%. The projects supported by UDB created and maintained over 51,800 jobs, with agriculture and agro-processing being the leading sectors in job creation.

Museveni reaffirmed the government’s commitment to fostering economic growth through accessible financing, emphasizing that UDB’s affordable credit is a key tool for building a modern and self-sufficient economy.