Uganda: agriculture and manufacturing are the main import substitution loans Udb

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The Development Bank of Uganda (UDB) granted more loans in terms of value to agro-industrialization than any other sector for the year ended in July.

In details highlighting the bank’s performance between July 2020 and July 2021, the UDB, a key player in the economic recovery due to weakened growth and disruptions from Covid-19, has prioritized loan applications from agro-industrialization, manufacturing and primary. agriculture with the aim of building economic resilience and helping the country to pursue the import substitution program.

For example, during the period, according to the UDB, agro-industrialization increased by Shs268b while manufacturing received Shs158b.

Primary agriculture received 104b Shs while infrastructure, tourism and hotels received 74.5b Shs and 32.4b Shs respectively. Health services and education services received the lowest amount, each allocated Shs13.6b and Shs2.16b, respectively.

Tourism and related activities as well as education services have been among the most affected sectors and stakeholders have previously indicated that there is a need to deepen the conversation beyond the current injections which have had little impact. impact.

The approvals, according to the UDB, indicate that the bank approved during the period loans worth 649.25 billion shillings, with at least 361.6 billion shillings already disbursed to applicants’ accounts.

The UDB also said the loans have already had an impact on the economy with a number of improvements recorded in agro-industrialization, manufacturing and primary agriculture.

For example, according to the UDB, around 27,421 jobs were created in agro-industrialization while 1,452 and 2,698 were created respectively in industry and tourism during the period.

Overall, more than 33,785 jobs have been created in different sectors with a production value of 5,400 billion Shs.

The reference period covers economic activity during the ongoing disruptions of Covid-19, which the government seeks to mitigate through cheap, long-term funding to protect key sectors of the economy from volatility, as well as to stimulate import substitution and value addition.

The UDB also announced a new program in which it will seek to support special groups such as small and medium enterprises, women and start-ups operating in priority sectors.

Under the program, said the UDB, small and medium-sized enterprises will be allowed to access low-cost loans up to a maximum of Shs 720 million, while women and start-ups will respectively have access to a widow up to 900 million Shs and 540 million Shs.


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