Uganda Development Bank
Encyclopedia
Overview
The bank began its operations in 1972. Uganda Development Bank is the first development finance institution established by the Government of Uganda. The main objective of UDB is to promote and finance development in various sectors of the economy with particular emphasis on agriculture, industry, tourism, housing and commerce. , the total asset valuation of the bank was approximately US$51.3 million (UGX:102.7 billion), with shareholders equity of approximately US$45.5 million (UGX:90.9 billion)Mode of Operation
In order to achieve its objective, UDB is empowered, by its statute, to provide financial assistance in the form of loanLoan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s and by way of equity participation. To enable it to finance the various projects, UDB is empowered to borrow funds from both local and foreign sources, within the borrowing limits determined by the Ministry of Finance, Government of Uganda.
History
UDB was established 1n 1972 by government decree. The period between 1972 and 1979 was characterized by the extension of medium term loans to small-scale enterprises on a limited basis. The sourcing of funding was constrained by adverse economic conditions locally and by the inability to obtain International funding by the prevailing Ugandan authorities during that period.The political leadership in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
changed in 1979 and Uganda Development Bank was able to obtain large credits from external financiers, like ADB
ADB
ADB is a three-letter acronym that may refer to the intergovernmental organizations:* The Asian Development Bank, a non-profit financial institution whose aim is to help developing Asian countries...
, IDA
International Development Association
The International Development Association , is the part of the World Bank that helps the world’s poorest countries. It complements the World Bank's other lending arm — the International Bank for Reconstruction and Development — which serves middle-income countries with capital investment and...
, EIB
EIB
EIB may stand for:*Epson Ivy Bowl, an American college football bowl game versus an all-star team from Japan*European Investment Bank, the European Union's financing institution*the Export-Import Bank of the United States*Even in Blackouts, an American band...
, EEC
EEC
EEC is an abbreviation that usually refers to the European Economic Community, the forerunner to the European Union.It may also refer to;* The East Erie Commercial Railroad, a shortline in Pennsylvania...
, OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
and BADEA. With these funds, UDB’s focus of activities shifted to financing medium and long term projects in agriculture, manufacturing and tourism. Between 1997 and 2001 the bank was restructured, recapitalized and re-organized as a limited liability company, wholly owned by the Government of Uganda.
Financing
The Bank obtains two types of funds:- Trust funds from Government on loan to UDB at specified rates and repayment periods.
- Direct borrowing from multinational financial institutions but guaranteed by Government of Uganda.
Uganda Development Bank is required to finance projects that are technically feasible, commercially and economically viable and socially desirable. Priority is given to:
- Existing projects requiring small assistance to improve their operations
- Projects with a scope to maximize the country’s resources and adding value to the product(s)
- Projects aiming to produce quality products at Internationally competitive prices targeted for export
- Projects creating new job opportunities for the local people.
A significant portion of the financing made by UDB is directed towards projects in the agricultural sector. Financing can be in the form of loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s which are repayable in installments over a pre-determined period of time or in the form of equity participation with specific criteria set out on how the equity is shared between UDB and the other investors in the project.
As of April 2009, efforts were underway to recapitalize UDB with a $7.5million capital infusion by the Government of Uganda. This funding was financed by a US$4.5 million loan to Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
from the Arab Bank for Economic Development in Africa
Arab Bank for Economic Development in Africa
The Arab Bank for Economic Development in Africa is a financial institution funded by the Governments of the Member States of the League of Arab States on 18 February 1974 . It is an independent international institution enjoying international legal status and autonomy in administrative and...
(BADEA) and the Islamic Development Bank
Islamic Development Bank
The Islamic Development Bank is a multilateral development financing institution located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organisation of the Islamic Conference , convened 23 Dhu'l Qa'dah 1393 AH.The bank officially began its activities on...
(IsDB).
Products and services
These include:- Project Term Loans
- Trade Financing
- Investment in Equity
- Project Advisory Services
- Project Management
Board of directors
As of January 2010, the following constitute the Board of DirectorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of the bank:
- James Kahoza - Chairman
- Maria Kiwanuka - Member
- Charles Ocici - Member
- Samson Wako - Member
- Amos NzeyiAmos NzeyiAmos Nzeyi is a Ugandan businessman, entrepreneur and industrialist. He is one of the wealthiest people in Uganda.-Business Interests:Amos Nzeyi owns the following business either wholly or in part:...
- Member - George W. Nyeko - Member
- David Mulasanyi - Member
Management
The Senior Management Team of the bank has the following members, as of January 2010:- Dr. Anthony Kwasi Appiah - Chief Executive OfficerChief executive officerA chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
- Godfrey Nsubuga - Director, Administration
- Priscilla Mugisha - Company Secretary
- Ann Muguluma - Director, Finance
- Gabriel Etou - Director, Development Finance
- Florence Mirembe - Director Administration
- Wilber Naigambi - Head, Information Technology
- Steven Opeitum - Manager, Trade Finance
See also
- Banking in UgandaBanking in Uganda-The early years:Prior to Uganda’s independence in 1962, Government-owned institutions dominated most banking in Uganda. In 1966 the Bank of Uganda, which controlled the issue of currency and managed foreign exchange reserves, became the Central Bank. Uganda Commercial Bank, which had fifty...
- Economy of UgandaEconomy of UgandaEndowed with significant natural resources, including ample fertile land, regular rainfall, and mineral deposits, it is thought that Uganda could feed the whole of Africa if it was commercially farmed. The economy of Uganda has great potential, and it appeared poised for rapid economic growth and...
- List of Financial Institutions in Uganda
- NakaseroNakaseroNakasero is the hill where the central business district of Kampala is located. Kampala is Uganda's capital and largest city.-Location:Nakasero is bordered by Mulago to the north, Makerere to the northwest, Old Kampala to the west, Namirembe and Mengo to the southwest, Nsambya to the south, Kibuli...