AFD and Uganda Development Bank sign €40 Million financing agreement to support Uganda’s economy

The agreement was signed on Monday, 23 February by Marc Trouyet, Country Director for Uganda of the French Development Agency, and Dr. Patricia Ojangole, Managing Director of Uganda Development Bank. The signing was witnessed by H.E. Virginie Leroy, Ambassador of France to Uganda.

Strengthening long-term development finance

During the ceremony held at 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, including 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 social protection for special interest groups.

Supporting UDB's strategic expansion

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 scale up investments in the country.

“For us as a development finance institution, access to concessional and strategic funding is not merely about liquidity. It is about leverage — leveraging every dollar mobilized into measurable economic impact,” the UDB Managing Director noted.

This line of credit will expand UDB’s capacity to finance transformative projects that create jobs, deepen industrialization, support SMEs, advance infrastructure, and drive inclusive and sustainable growth.

Advancing inclusive and climate-resilience growth

“This partnership embodies the support the French Government is providing to Uganda to develop its economy and successfully implement the Tenth Fold Growth Strategy, particularly in the so-called ATMS sectors. France supports Uganda’s ambition to become a Middle-Income Country by harnessing the full potential of its agriculture and agribusiness sectors,” said H.E. Virginie Leroy, Ambassador of France to Uganda.

“AFD is partnering with UDB with the confidence that this will deliver the impacts we are jointly seeking as public development banks: social impacts through increased financial inclusion targeting women- and youth-led businesses; economic impacts through strengthening agricultural actors such as SACCOs and agribusinesses; and climate impacts by promoting climate-smart agriculture and selecting climate-resilient infrastructure,” emphasized the AFD Country Director.