Uganda’s development ambitions have received a significant strategic boost following the signing of a €40 million financing agreement between the Agence Française de Développement (AFD) and the Uganda Development Bank (UDB). More than a funding arrangement, the partnership signals deepening confidence in UDB’s expanding role as a catalyst for inclusive and sustainable economic transformation.
The financing package consists of a €40 million credit line (approximately Shs 169 billion), complemented by €800,000 (about Shs 3.38 billion) in technical assistance. Signed on Monday, 23 February, by AFD Country Director Marc Trouyet and UDB Managing Director Dr. Patricia Ojangole, the agreement was witnessed by H.E. Virginie Leroy, Ambassador of France to Uganda, at a ceremony held at UDB Tower in Kampala.
At a time when Uganda is intensifying efforts to accelerate industrialization, strengthen enterprise competitiveness, and expand economic participation, the facility provides long-term, patient capital targeted at priority sectors of the economy. It comes as UDB enters the second year of implementing a bold institutional strategy that expands its mandate beyond traditional lending into transaction structuring, advisory services, and mobilization of blended finance from local and international partners.
Speaking during the signing ceremony, Dr. Ojangole emphasized that the partnership represents leverage rather than liquidity. She noted that access to concessional and strategic funding enables the Bank to crowd in additional capital and convert financial resources into measurable economic, social, and environmental impact.
“We are deeply grateful to AFD for their trust and shared vision,” she said. “This support strengthens our ability to address Uganda’s environmental and social challenges in a structured and measurable way, particularly by expanding access to finance for underserved groups such as women and youth. Financial inclusion is central to reducing structural inequalities and widening economic opportunity.”
The new line of credit is expected to enhance UDB’s capacity to finance transformative projects that generate employment, deepen value addition, support SMEs, expand infrastructure, and promote climate-resilient investments. By strengthening agricultural value chains, SACCOs, and agribusinesses, the partnership also seeks to unlock productivity in sectors critical to Uganda’s long-term growth trajectory.
Ambassador Virginie Leroy reaffirmed France’s commitment to Uganda’s economic advancement, noting that the partnership reflects France’s continued support for Uganda’s ambition to attain middle-income status by harnessing the full potential of its agriculture and agribusiness sectors. She underscored the broader cooperation between the two countries in advancing green industrialization, innovation, and sustainable growth.
AFD’s Country Director highlighted that the collaboration is built around a triple-impact framework — driving social impact through enhanced financial inclusion for women- and youth-led enterprises; generating economic impact by strengthening productive sectors and enterprise competitiveness; and advancing climate action through climate-smart agriculture and resilient infrastructure.
As Uganda pushes forward with the implementation of its National Development Plan IV, the AFD–UDB agreement positions development finance not merely as capital deployment, but as a strategic instrument for systemic transformation — aligning international partnership with national ambition to deliver inclusive, resilient, and long-term economic growth.
