Uganda Development Bank (UDB) has urged tourism investors to take advantage of affordable and long-term financing to turn Eastern Uganda’s tourism attractions into viable businesses capable of creating jobs and supporting local economies.
Peter Watuwa, UDB Regional Manager for the Eastern Regional Office, said the region’s natural, cultural and adventure tourism attractions present significant investment opportunities, but require patient capital to develop competitive tourism enterprises.
Watuwa was speaking during the World Tourism Day celebrations in Mbale on September 27.
He said tourism should not be viewed only as a source of visitors and foreign exchange, but as a value chain that connects accommodation, transport, agriculture, food production, creative industries, trade and community enterprises.
“Tourism is much more than the movement of visitors. It is an economic value chain connecting accommodation, transport, agriculture, food production, creative industries, trade and community enterprises. With the right investment, tourism has the potential to stimulate economic activity far beyond the individual enterprise,” Watuwa said.
His remarks come as Uganda’s tourism sector continues to recover, with international tourist arrivals increasing by 19.7 per cent to 1.64 million in 2025.
Tourism receipts reached about Shs5.83 trillion ($1.62 billion), surpassing pre-pandemic levels, while the sector accounted for about 16 per cent of Uganda’s total export revenues.
Watuwa said the growth presents an opportunity for investors to expand the range and quality of tourism products, particularly in regions such as Eastern Uganda where several attractions remain underdeveloped.
“Uganda has demonstrated that it has a globally competitive tourism proposition. The next frontier is to deepen investment across the value chain, improve the quality and diversity of our tourism products, increase visitor expenditure and ensure tourism generates greater economic value for businesses and communities,” he said.
Eastern Uganda has several attractions that could support increased investment, including Mount Elgon National Park, Sipi Falls, the Source of the Nile, Pian Upe Wildlife Reserve, Tororo Rock and the Nyero Rock Paintings.
According to UDB, these attractions create opportunities for investment in accommodation, conference facilities, specialised tourist transport, adventure tourism, cultural experiences, farm stays and coffee tourism.
Watuwa said the challenge was to transform the attractions into commercially viable tourism products supported by adequate infrastructure and services.
“The opportunity before Eastern Uganda is to convert its extraordinary tourism assets into investable products and experiences. This requires quality accommodation, reliable transport, compelling visitor experiences and strong local supply chains,” he said.
He said UDB was positioning itself to support investors who require longer periods to recover their investments, particularly in projects such as hotels, lodges, conference facilities, specialised transport and destination infrastructure.
“Tourism requires patient capital because many investments take time to mature. Our role is to provide financing that enables viable businesses to invest for the long term while generating sustainable economic and social returns,” Watuwa said.
UDB provides working capital, asset financing and long-term project financing, with project-financing tenors extending up to 15 years. The bank also provides equity and other investment solutions, as well as project preparation, investor support and enterprise advisory services.
Watuwa said the bank considers the wider economic impact of projects when financing tourism businesses.
“When UDB finances a hotel, the impact extends beyond the hotel. It creates employment, generates demand for agricultural produce, creates opportunities for transporters and service providers, and supports local suppliers,” he said.
As of 2025, services, which include tourism, accounted for about 17 per cent of UDB’s portfolio.
The call for more affordable financing was also echoed by Tourism, Wildlife and Antiquities Minister Tom Butime, who said tourism investors need capital that matches the long period required for some projects to generate returns.
“We need affordable capital that allows investors to build facilities whose returns accumulate over many years,” Butime said.
He also called for stronger government support for the meetings, incentives, conferences and exhibitions (MICE) industry through investment incentives, affordable capital and infrastructure capable of attracting major events.
President Yoweri Museveni has similarly urged Uganda to market itself not only as a tourism destination but also as an investment and trade destination.
“We should not only tell the world to visit Uganda. We should also tell the world to invest in Uganda, trade with Uganda and build partnerships with Uganda,” Museveni said.
Watuwa said UDB’s Eastern Regional Office in Mbale would bring development finance and enterprise support closer to businesses and prospective investors in the region.
He said the combination of growing tourism demand, Eastern Uganda’s tourism assets and access to development finance could help unlock new investment, employment and business opportunities across the region.
