Uganda Development Bank Limited

Uganda Development Bank Limited
Parastatal
Industry Finance
Founded 1972
Headquarters First Floor, Rwenzori Towers
6 Nakasero Road, Nakasero
Kampala, Uganda
Key people
 Felix Okoboi
Chairman
Patricia Adongo Ojangole
Chief Executive Officer
Products Loans, equity partnerships, financial advisory services, management services, export/import finance
Revenue IncreaseAftertax:UGX:6.4 billion (2016)[1]
Total assets UGX:226.4 billion (2016)[1]
Owner Government of Uganda
Number of employees
 49 (2016)[1]
Website Homepage

The Uganda Development Bank Limited (UDBL) is a government-owned development bank in Uganda.[2]

Overview

UDBL began operating in 1972 and was the first development finance institution established by the government of Uganda. The main objective of UDBL is to promote and finance development in various sectors of the economy with particular emphasis on agriculture, industry, tourism, housing, and commerce.[2] As of December 2016, UDBL's total assets were valued at UGX:226.4 billion, with a loan book valued at UGX:183.5 billion.[1] At that time, the shareholders' equity was valued at UGX:156,541,284,000.[1]

In June 2018, the government negotiated for a $20 million (UShs76 billion) loan from the African Development Bank to capitalize UDBL, primarily to lend to the agricultural sector for mechanization and value addition.[3]

History

UBDL was established in 1972. The political leadership in Uganda changed in 1979, and UDBL was then able to obtain large credits from external financiers, like the African Development Bank, the International Development Association, the European Investment Bank, the European Economic Community, the Organization of Petroleum Exporting Countries, and the Arab Bank for Economic Development in Africa (Banque Arabe pour le Développement Economique en Afrique) (BADEA).[4] With these funds, UDBL's focus shifted to financing medium and long term projects in agriculture,[5] manufacturing, and tourism.[1] Between 1997 and 2001, the bank was restructured, recapitalized, and re-organized as a limited liability company, wholly owned by the government of Uganda.[6]

Future plans

As of September 2013, the bank had re-organized and repositioned itself to play a larger and more visible role in Uganda's development finance. It has developed a medium-term recapitalization plan (2013-2017) that will increase shareholder's equity from the current UGX:100 billion (US$40 million), to UGX:500 billion (US$200 million).[7][8]

Its growth plan has been streamlined to harmonize with Uganda's National Development Plan (NDP) and with Vision 2040. Vision 2040 aims to transform Ugandan society from a peasant population to a modern and prosperous country by the year 2040. Some of the development partners that UDBL is working with include the Kuwait Fund, the African Export-Import Bank, BADEA, and the Islamic Development Bank.[4]

Services

UDB's services include short term loans, medium term loans, long term loans, equity investments, trade finance loans, and bank guarantees.[9]

Board of directors

As of August 2018, UDBL's board of directors consisted of:[1]

  • Felix Okoboi - Chairman
  • John Byaruhanga
  • Frank Tumuheirwe
  • Nimrod Waniala
  • Henry Balwanyi Magino
  • Silvia Angey Ufoyuru

Management

As of August 2017, UDB's management team was:[10]

  • Patricia Ojangole - chief executive officer
  • Joshua Allan Mwesiga - director, human resource & administration
  • Denis Owens Ochieng - director of finance
  • Ladislao Ategeka - director development finance
  • Andrew Muluubya - director, management information systems
  • Stephen Hamya - chief internal auditor
  • Francesca Kakooza - bank secretary

Controversy

According to a 2013 published report, an audit by Uganda's auditor general revealed financial impropriety by board members and senior managers at UDBL, leading to financial loss. Both the board and management team involved in the fraud have been terminated and the investigation continued as of June 2014.[11][12][13][14]

See also

References

  1. 1 2 3 4 5 6 7 UDB (27 February 2017). "Uganda Development Bank Documents: 2016 Annual Report". Kampala: Uganda Development Bank (UDB). Retrieved 30 August 2017.
  2. 1 2 UDBL (11 April 2016). "Uganda Development Bank Limited: About Us - Overview". Kampala: Uganda Development Bank (UDBL). Retrieved 11 April 2016.
  3. ↑ Otage, Stephen (19 June 2018). "Islamic banking starts in October, says Finance". Daily Monitor. Kampala. Retrieved 20 June 2018.
  4. 1 2 Kulabako, Faridah (9 July 2013). "Uganda Development Bank to shift its market interest". Daily Monitor. Kampala. Retrieved 4 August 2016.
  5. ↑ Moses Mugalu, and Samuel Kayiwa (6 March 2015). "Uganda Development Bank to Focus On Agriculture Market". The Observer (Uganda) via AllAfrica.com. Kampala. Retrieved 3 August 2015.
  6. ↑ Kamukama, Eronie (15 March 2017). "'Uganda Development Bank prepared to float on its own'". Daily Monitor. Kampala. Retrieved 20 June 2018.
  7. ↑ Otagec, Stephen (2 October 2013). "Bank Lowers Interest Rates On Agriculture Loans". Daily Monitor. Kampala. Retrieved 22 November 2014.
  8. ↑ Tajuba, Paul (23 February 2015). "UDB Gets Shs500 Billion To Boost Capital Base". Daily Monitor. Kampala. Retrieved 1 May 2015.
  9. ↑ UDB (1 January 2015). "Uganda Development Bank: Services". Uganda Development Bank (UDB). Retrieved 11 June 2015.
  10. ↑ UDB. "Our Management Team". Uganda Development Bank (UDB). Retrieved 4 August 2016.
  11. ↑ Mukiibi Sserunjogi, Eriasa (5 January 2013). "Audit Reveals Further Rot In Uganda Development Bank". Daily Monitor (Kampala). Retrieved 29 June 2014.
  12. ↑ Kakaire, Sulaiman (19 November 2013). "Uganda: Development Bank Faces Probe Over Sh20 Billion Loan". The Observer (Uganda) via AllAfrica.com. Retrieved 29 June 2014.
  13. ↑ Katunzi, Pius Muteekani (19 April 2014). "Uganda: UDBL - How The Bad Guys Derailed The IGG". The Observer (Uganda) via AllAfrica.com. Retrieved 29 June 2014.
  14. ↑ Wesaka, Anthony (30 June 2014). "UDB's Ojangole Acquitted". Daily Monitor (Kampala). Retrieved 30 June 2014.
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