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Uganda Development Bank

 

Uganda Development Bank

Uganda Development Bank
Type Parastatal
Industry Finance
Founded 1972
Headquarters First Floor, Rwenzori Towers
6 Nakasero Road, Nakasero
Kampala, Uganda
Key people Samuel Sejjaaka
Chairman
Patricia Adongo Ojangole
Chief Executive Officer
Products Loans, Equity Partnerships, Financial Advisory Services, Management Services, Export/Import Finance
Revenue IncreaseAftertax:US$248,000 (UGX:621 million) (2013)
Total assets US$58.4 million (UGX:146.9 billion) (2013)
Owners Government of Uganda
Website Homepage

Uganda Development Bank (UDB) is a government-owned development bank in Uganda.

Contents

  • Overview 1
  • Mode of Operation 2
  • History 3
  • Financing 4
  • The future 5
  • Products and services 6
  • Board of directors 7
  • Management 8
  • Controversy 9
  • See also 10
  • References 11
  • External links 12

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. As of December 2013, the total asset valuation of the bank was approximately US$58.4 million (UGX:146.9 billion), with shareholders equity of approximately US$41.9 million (UGX:105.6 billion) [1]

Mode of Operation

In order to achieve its objective, UDB is empowered, by its statute, to provide financial assistance in the form of loans 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 Development Bank Website
  • Judge Faults IGG In UDB Sackings

External links

  1. ^ UDB, . "December 2013 Annual Financial Report". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  2. ^ UDB, . "Profile of Uganda Development Bank". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  3. ^ Otage, Stephen (2 October 2013). "Bank Lowers Interest Rates On Agriculture Loans".  
  4. ^ Kulabako, Faridah (9 July 2013). "Uganda Development Bank to Shift Its Market Interest".  
  5. ^ UDB, . (31 December 2014). "Uganda Development Bank Board of Directors". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  6. ^ UDB, . "Uganda Development Bank Management Team". Uganda Development Bank (UDB). Retrieved 29 June 2014. 
  7. ^ Mukiibi Sserunjogi, Eriasa (5 January 2013). "Audit Reveals Further Rot In Uganda Development Bank".  
  8. ^ Kakaire, Sulaiman (19 November 2013). "Uganda: Development Bank Faces Probe Over Sh20 Billion Loan".  
  9. ^ Katunzi, Pius Muteekani (19 April 2014). "Uganda: UDBL - How The Bad Guys Derailed The IGG".  
  10. ^ Wesaka, Anthony (30 June 2014). "UDB’s Ojangole Acquitted".  

References

See also

A recent audit by Uganda's Auditor General has revealed disturbing financial impropriety by Board members and Senior managers at the institution, leading to financial loss. Both the board and management team involved in the fraud have been terminated and investigation continue as of June 2014.[7][8][9][10]

Controversy

  • Milly Kasozi – Director, Human Resource & Administration
  • Daniel Kagwa - Director of Finance
  • Patricia Adongo Ojangole – Chief Executive Officer (CEO)
  • Andrew Muluubya- Director, Management Information Systems
  • Dorothy Ochola – Bank Secretary
  • Patrick Oketa – Director, Development Finance
  • Daphne Twinomucunguzi – Acting Chief, Internal Audit.

The following people constituted the senior management team at Uganda Development Bank:[6]

Management

As of December 2013, the following constituted the Board of Directors of the bank:[5]

Board of directors

These include: (a) Project Term Loans (b) Trade Financing (c) Investment in Equity (d) Project Advisory Services and (e) Project Management.

Products and services

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 UDB is working with, include the following: (a) the Kuwait Fund, (b) Afrexim Bank, (c) Arab Bank for Economic Development in Africa (BADEA) and (d) Islamic Development Bank (IDB).[4]

As of September 2013, the bank has 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 UGX100 billion (US$40 million), to UGX500 billion (US$200 million).[3]

The future

A significant portion of the financing made by UDB is directed towards projects in the agricultural sector. Financing can be in the form of loans 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.

  • 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.

Uganda Development Bank is required to finance projects that are technically feasible, commercially and economically viable and socially desirable. Priority is given to:

  1. Trust funds from Government on loan to UDB at specified rates and repayment periods.
  2. Direct borrowing from multinational financial institutions but guaranteed by Government of Uganda.

The Bank obtains two types of funds:

Financing

[2]

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