Kampala, Uganda – August 2, 2024 – The Uganda Development Bank (UDB), has today unveiled its 2023 Development Impact Report. This annual report reflects the bank’s continued commitment to enhancing Uganda’s socio-economic landscape through strategic investments and interventions.
Launched under the theme ‘Transforming Lives: The Role of UDB in Driving Socio-economic Transformation in Uganda,’ the report presents compelling evidence of UDB’s positive impact across various sectors. This year’s findings highlight remarkable achievements in job creation, output value, foreign exchange earnings, and tax contributions, all stemming from initiatives supported by the bank.
“The 2023 Development Impact Report underscores the substantial impact of our strategic investments and interventions,” said Ms. Patricia Ojangole, Managing Director of UDB, during the report’s launch. “We are steadfast in our support for Uganda’s economic growth and job creation, with a strong emphasis on sustainability and regional trade. Our financial and non-financial interventions are designed to deliver high socio-economic value, including job creation, increased production output, and foreign exchange earnings while contributing to government revenues through tax.”
The report reveals that UDB’s investments have created and maintained an impressive 51,841 jobs, showcasing the bank’s role as a vital catalyst for employment in the country. The total output value arising from these initiatives reached UGX 5.8 trillion, significantly bolstering Uganda’s economy. Furthermore, UDB’s support has contributed UGX 236.1 billion in tax revenue to the government, reinforcing its socio-development initiatives, while also generating UGX 953 billion in foreign exchange earnings.
As a beacon of hope, the 2023 report reflects UDB’s optimism for Uganda’s future and highlights its commitment to driving sustainable socio-economic transformation.
KEY FINDINGS
Employment
It’s worth noting that the enterprises the Bank financed saw a significant increase in job creation and maintenance, with a total of 51,841 jobs compared to 51,439 in 2022. Of these, 41.21% were permanent and 58.78% were temporary. The highest proportion of temporary employment, 41.5% or 12,633 jobs, was in primary agriculture.
“This may be attributed to the nature of the sector, where activities peak during the planting, weeding, and harvesting seasons and are low during other seasons. Therefore, farmers follow the same patterns in employing workers,” Dr Francis Mwesigye, the Director of Economic Research and Knowledge Management, explained, providing a clear understanding of the impact of the seasonal nature on employment.
The youth have been a driving force in the job market, filling 64% of the jobs created and maintained. Women followed, filling 27% of the jobs, and PWDs contributed 0.25%. It’s also worth noting that 33% of the youth, 39% of women, and 0.2% of PWDs are among the shareholders, as per the report.
Women accounted for 13,727 jobs and held 39% of shareholding, up from 27% the previous year.
This increase can be attributed to the Bank’s deliberate effort towards women’s inclusion through tailored products. Women constituted 43% of the senior management teams in these enterprises, up from 37% in 2022. PWD (Persons living with Disabilities) took up 130 jobs.
Supporting Private Sector profitability UDB-supported enterprises posted over UGX869.05 billion in profitability in 2023, indicating continued growth in financial strength and viability. Sectoral profit margins varied, with sectors like health and primary agriculture demonstrating higher profit margins than tourism and hospitality.
Tax Contribution
Supported enterprises contributed approximately UGX236.08 billion in direct domestic taxes in 2023, which is estimated to be 1.43% of the total national domestic taxes in 2023, a significant figure that underscores the scale of our tax revenue. Our analysis of the sectoral contribution to taxes showed that the manufacturing sector contributed the most, at 47% of the total tax revenue contribution, followed by Agro-processing at 27.9% and primary agriculture at 15.0%. Even the least contributing sectors, tourism at 3.2%, Education at 0.1%, and other sectors combined at 0.5%, play a part in our collective tax revenue.
Promoting the Import Substitution Agenda
Conversely, the earnings from locally produced destined products (exports) saw a commendable 47% increase from UGX649 billion to UGX953 billion. This significant growth was primarily due to the increased production, particularly in the manufacturing and agro-processing sectors, a testament to the strength of our local industries.
They mainly exported to neighboring countries within the East African Community (EAC), COMESA, the EU, and the UAE, emphasizing the importance of regional trade partnerships for market access.
Notably, a promising 66% of all raw materials utilized in enterprises funded by the Bank were locally produced during the year, a clear sign of the growing strength and potential of our local industries.
“The 2023 Development Impact Report showcases the substantial impact of our strategic investments and interventions. We proudly support Uganda’s economic growth and job creation, while unwaveringly prioritizing sustainability and regional trade. Our financial and non-financial interventions aim to deliver high socio-economic value, including job creation, increased production output, and foreign exchange earnings,” Ms Ojangole reaffirmed.
SOCIAL INCLUSION
On behalf of the Ugandan government, the Bank has made a firm commitment to a comprehensive, far-reaching, and people-centered set of universal and transformative social inclusion targets. These targets prioritize the participation of the youth, women, and People With Disabilities.
