Patricia Ojangole, the UDB Managing Director
Nakaseke, Uganda – The Uganda Development Bank (UDB), a government-owned bank with a formidable Shs 1.6 trillion in assets, has urged small-scale businessmen in Nakaseke to apply for its cheap and patient loans to avoid risks associated with high-interest rates.
Rosemary Namayanja Nsereko, Deputy Secretary General of the National Resistance Movement and director of Poultry, Beef Feedlot and Goat rearing farms, noted that despite government capitalization, several businessmen outside Kampala remain unaware of UDB’s affordable loan facilities.
“Others think UDB targets big entrepreneurs, yet even small-scale enterprises can benefit,” Namayanja said, sharing her personal experience of acquiring a loan from UDB on simple terms using a land agreement, which would be challenging in a commercial bank.
To address this, Namayanja and Nakaseke District Commercial Office invited UDB officials to meet with 150 small businessmen in the district at Nakaseke Technical Institute in Butalangu town council.
Eriah Were Funnah, Head of Special Programs at UDB, highlighted the bank’s competitive loan terms.
“We offer loans at 12% interest per annum to businesses investing in the whole agriculture chain, manufacturers, tourism, and hospitality, among other sectors,” Funnah said.
Steven Jojo, Vice Chairman of Nyaruzu Ngoma Investment SACCO, welcomed UDB’s loan facilities.
“Money lenders in Ngoma town council lend to businessmen at 7% per week. If you fail to pay, they can easily sell your collateral security. UDB’s loans are cheaper and friendlier,” Jojo said.
Jojo revealed plans to apply for Shs 700 million to invest in bull fattening and extend loans to SACCO members.
David Kalwanga Kamya, a maize dealer, praised UDB’s loan terms.
“Commercial banks offer loans at interest rates of 18% and above, with no repayment grace periods. UDB’s loans offer flexibility,” Kamya said.
Other businessmen noted that several enterprises have collapsed due to bad loans, and the engagement was timely.
The government is set to inject an additional Shs 55 billion into UDB in 2024/25.
UDB’s initiative complements other Central Government programs, such as the Emyooga Presidential Initiative and Parish Development Model, targeting Ugandans in low-income generating ventures.
By accessing UDB’s loan facilities, Nakaseke small-scale businessmen can accelerate their enterprises’ growth and development.