Uganda’s economic transformation agenda has received a boost following the signing of a €40 million financing agreement between Agence Française de Développement (AFD) and the Uganda Development Bank (UDB).
The partnership reinforces UDB’s mandate to provide long-term, patient capital to priority sectors of the economy and accelerate sustainable national development. The financing package comprises a €40 million credit line (approximately Shs 169 billion), complemented by €800,000 (about Shs 3.38 billion) in technical assistance.
The agreement was signed on Monday, February 23, by AFD country director Marc Trouyet and UDB managing director Dr Patricia Ojangole. The ceremony at UDB Tower in Kampala was witnessed by the French ambassador to Uganda, Virginie Leroy.
Ojangole described the partnership as a strategic milestone rather than a routine funding arrangement, noting that the facility will significantly strengthen UDB’s capacity to catalyse inclusive and sustainable economic growth.
She said it would expand access to long-term development finance, particularly for sectors and populations that have historically faced barriers to capital.
“We are deeply grateful to AFD for their trust and shared vision,” Ojangole said. “This funding will enable us to address Uganda’s environmental and social challenges in a structured and measurable manner, especially by improving access to finance for underserved groups, including women and youth. This is central to strengthening social inclusion, widening economic participation, and reducing structural inequalities within the economy.”
The partnership aligns with Uganda’s National Development Plan IV, which prioritises enterprise growth, competitiveness and expanded access to economic resources. It also comes as UDB enters the second year of implementing a new strategy that broadens its role beyond traditional lending.
Under the strategy, UDB is strengthening its capacity to structure complex transactions, provide advisory services and crowd in both local and international development finance to unlock larger-scale investments.
“For us as a development finance institution, access to concessional and strategic funding is not merely about liquidity, it is about leverage,” Ojangole emphasized. “It is about transforming mobilized capital into measurable economic, social, and environmental impact.”
The new line of credit is expected to enhance UDB’s ability to finance transformative projects that create jobs, deepen industrialisation, strengthen small and medium enterprises, develop infrastructure and drive inclusive growth.
Leroy reaffirmed France’s commitment to Uganda’s development ambitions, saying the partnership reflects continued French support for Uganda’s goal of attaining middle-income status by harnessing the potential of its agriculture and agribusiness sectors.
She also highlighted upcoming engagements under the Africa Forward Summit in Nairobi, where discussions will focus on innovation in agriculture, green industrialisation, energy, logistics, the digital economy and health, as well as reforms to the international financial system.
Trouyet underscored that the collaboration is built around a triple-impact vision: delivering social impact through enhanced financial inclusion for women- and youth-led enterprises; generating economic impact by strengthening agricultural value chains, Saccos and agribusinesses; and driving climate impact through the promotion of climate-smart agriculture and climate-resilient infrastructure.
Together, the partnership positions development finance not merely as funding, but as a strategic instrument for inclusive and sustainable transformation.
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