The French Development Agency (AFD) and Uganda Development Bank (UDB) haveentered into a partnershipto further strengthen UDB’s mandate of providing long-term, patient capital to priority sectors of the economy. This partnership is being implemented through an initial EUR 40 million credit line (UGX 169 billion) complemented by EUR 800, 000 (UGX 3.38 billion) in technical assistance.
The agreement was signed on Monday, 23 February by Marc Trouyet, the Country Director of the French Development Agency, and Dr. Patricia Ojangole, the Managing Director of Uganda Development Bank. The signing was witnessed by H.E. Virginie Leroy, Ambassador of France to Uganda.
During the ceremony held at the UDB Tower in Kampala, Dr. Ojangole said the funding will strengthen the Bank’s ability to catalyze sustainable and inclusive economic growth while expanding access to long-term development finance.
“We are deeply grateful to our partner, AFD, for their trust, collaboration, and shared vision. This funding will contribute to addressing Uganda’s environmental and social challenges in a structured and measurable manner such as facilitating improved access to finance for traditionally underserved and excluded populations, particularly youth and women. This is important in strengthening social inclusion, expanding economic participation, and contributing to the reduction of structural inequalities within the economy,” Dr. Ojangole said.
This partnership aligns with the priorities set out in Uganda’s National Development Plan IV (NDP IV) which emphasizes expanding access to economic resources and strengthening enterprise growth and competitiveness.
The additional financing comes as UDB enters the second year of implementing its new strategy which expands the Bank’s role beyond providing credit to the private sector. Under this strategy, UDB is taking on a stronger mandate in structuring transactions, providing advisory services, and crowding-in development finance from various local and international partners to finance investments in the country, among other roles.
“For us as a development finance institution, access to concessional and strategic funding is not merely about liquidity. It is about leverage — leveraging the funds mobilized into measurable economic impact,” the UDB Managing Director noted.
This line of credit will expand our capacity to finance transformative projects that create jobs, deepen industrialization, support SMEs, advance infrastructure, and drive inclusive and sustainable growth.
The Ambassador of France to Uganda, H.E. Virginie Leroy said : “This partnership embodies the support the French Government is providing to Uganda in order to develop its economy and successfully implement the Tenth Fold Growth Strategy, particularly in the so called ATMS sectors. France supports the ambition for Uganda to become a Middle-Income Country by harnessing all the potential of its agriculture and its agribusinesses”.
The Ambassador of France to Uganda added “A business forum will be organized during the Africa Forward Summit under the joint invitation of President Emmanuel Macron and William Ruto in Nairobi on May 11th and 12th. Agriculture, Green Industrialization, Energy, Logistics, Digital Economy, Health will illustrate the African continent’s innovation capacity. It will also address the reform of the international financial system and response to macroeconomic imbalances.”
“AFD is partnering with UDB with the confidence that this will bring the impacts we are both looking at as public development banks. Social impacts while increasing financial inclusion by targeting women and youth led businesses. Economic impacts through strengthening agricultural actors such as SACCOs and agrobusinesses. Climate change impacts by promoting climate-smart agriculture and selecting climate resilient infrastructure” emphasized AFD Country Director.
