Uganda Development Bank aims to raise $500 million from international capital markets to support its four-year strategy focusing on mining, energy, and manufacturing sectors.
KAMPALA, Uganda — Uganda Development Bank (UDB) is preparing to raise $500 million from international capital markets. The bank will use the funds to support its four-year strategy, focusing on mining, energy, and manufacturing.
“We aim to attract international investors interested in supporting Uganda’s economic growth,” said Thaib Lubega, UDB Treasury Head. “This funding will allow us to finance critical sectors essential for industrialization.”
In addition, Uganda will host the first development finance summit from September 1–2, 2025, with the spotlight on green finance, sustainable development, and unlocking inclusive economic growth across Africa.
Capital Raise in Tranches
UDB plans to issue the funds in several tranches. The first tranche could come as early as next year and is expected to range from $100 million to $150 million.
“We want a phased approach to ensure flexibility and maximize investor participation,” Lubega said.
The bank targets development finance institutions, commercial banks, and impact investors. UDB’s strong track record and alignment with Uganda’s National Development Plan (NDP) should make it attractive.
Boosting Mining and Energy Sectors
UDB intends to use the funds to finance projects that support Uganda’s economic diversification. Mining remains a priority sector, and the bank aims to increase its contribution to GDP.
“Investing in mining creates jobs and stimulates industries like construction and manufacturing,” Lubega said.
The energy sector will also benefit. UDB plans to fund projects that expand electricity generation and improve access.
“Reliable energy is essential for industrial growth,” Lubega added. “Our financing will strengthen infrastructure and ensure consistent power supply.”
Supporting Manufacturing Growth
Manufacturing forms a cornerstone of Uganda’s industrialization goals. UDB will finance projects that focus on value addition and export-oriented production.
“We want to increase local production and reduce imports,” Lubega explained.
The bank expects over 5 million businesses and financial service providers to benefit directly. Additionally, more than 30 million Ugandans could gain improved access to financial services.
Aligning with Uganda’s Development Plans
The capital raise aligns with Uganda’s broader National Development Plan, which emphasizes industrialization, infrastructure, and value-added exports.
“Diversifying our funding sources is crucial for sustaining our development agenda,” Lubega said. “Capital markets allow us to access global resources alongside traditional financing.”
In May, Uganda signed an $800 million financing agreement with the Islamic Development Bank to fund infrastructure, including the planned railway linking Uganda to Kenya’s Standard Gauge Railway.
Investor Confidence and Market Impact
The upcoming capital raise is among the first major debt offerings by a Ugandan state-owned enterprise in recent years. Analysts expect it to attract global attention and boost investor confidence.
“This development signals confidence in Uganda’s economic prospects,” said John Kasekende, former Deputy Governor of the Bank of Uganda. “It shows that public institutions can access international capital successfully.”
UDB is working with financial advisors and legal experts to structure the tranches in line with international standards. The bank emphasizes transparency and accountability.
“We aim to build lasting relationships with investors who share our vision for Uganda’s growth,” Lubega stated.
Expected Economic Benefits
The raised funds will enhance UDB’s ability to finance large-scale development projects. Consequently, trade, manufacturing, and energy sectors could see rapid growth. SMEs, which drive job creation, will gain easier access to affordable financing.
“This initiative reinforces our commitment to economic transformation,” Lubega said. “With international support, we can implement projects that deliver real impact for Uganda.”
The government anticipates that this capital raise will accelerate industrialization, boost exports, and reduce reliance on imported goods.
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