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In this interview, Patricia Ojangole, Managing Director/CEO of Uganda Development Bank Limited (UDB), speaks with Jide Akintunde, Managing Editor of Financial Nigeria publications, on various issues in the transformation of African economies and development financing. Dr. Ojangole is also the Chairperson of the Association of African Development Finance Institutions (AADFI). She was recently recognised as "Banker of the Year" at the prestigious 2025 African Banker Awards.


Patricia Ojangole 

Jide Akintunde (JA): The last few years have seen an acceleration of the economic and industrial transformation trends that began in earlier years. What challenges does this pose to the banking industry and its leaders, particularly in Africa?

Patricia Ojangole (PO): Despite some notable gaps in African economies, there is no doubt that the continent is making strides towards transformation, in broad economic terms as well as industrial trends. 

Africa’s economy has been growing steadily in the past few years. Real GDP growth averaged 3-4 per cent. In 2026, growth is projected at 4.3 per cent. The list of African economies with impressive growth continues to expand. This year, out of 54 national economies on the continent, 24 or more are expected to register spectacular growth rates of more than 5 per cent, up from 17 economies in the previous year. There has been a continuous structural transformation on the continent. African economies are shifting from being predominantly traditional, agriculture-based to industrialised and service-oriented economies.

However, the transformation journey presents major challenges, which the banking industry and its leadership must rise to meet. 

First is the huge infrastructure gap on the continent. Africa needs the requisite infrastructure that is sufficient to smooth the tough path to transformation. The infrastructure gap in Africa is large. Addressing it requires colossal investments or financing requirements, which exert significant pressure on the financial capital and other resources of banks.

Second, there are the environmental threats, which exert immense pressure on the banking industry. Industrial transformation comes with environmental risks, such as increased greenhouse gas emissions, air pollution, and waste generation. So, the banking industry now requires more resources to invest than ever before. The industry not only has to address financing needs for increased industrialisation but also must concurrently deal with a new challenge of ensuring that investments support environmental protection or conservation. Climate change-related threats are real. Transformation comes with new pressure to invest in climate risk mitigation or adaptation.

Third, the journey to economic and industrial transformation is characterised by rapid technological changes, including digital disruptions and increased cybersecurity risks. There is, therefore, increased pressure on banks to adapt and innovate in a highly dynamic digital space. For example, banks are having to embrace investments in fintech, digital banking platforms, and artificial intelligence (AI), or invest generally in digital transformation. This is an area that is ever rapidly changing, presenting new challenges year in, year out, and the increased risk of cyber-attacks on banks is real.

Fourth, the quality of existing institutions and governance falls short of what is needed for accelerated transformation. Banks must confront this by embracing new roles; for example, developing new solutions that address or strengthen institutions and governance as enablers of business and innovation.

Finally, with the transformation has come frequent changes in policy and regulatory frameworks. Banks must continually adapt and comply with the constantly evolving regulatory environment, as governments introduce new regulations to govern industrial transformation. This directly or indirectly affects investments made by the banks.

JA: Uganda Development Bank (UDB) has responded to the challenges and opportunities of disruptive and transformational trends by embracing sustainability. How have you validated this strategic pivot?

PO: Our high level of commitment to sustainability is evidenced by the fact that it is embedded at the core of our strategy, shaping how we allocate capital, govern risk, and define success, rather than being pursued as a standalone initiative. Our long-term financing strategy is deliberately aligned with Uganda’s National Development Plans, climate resilience priorities, and inclusive growth objectives.

We have systematically integrated economic, environmental, social, and climate considerations across the full project life cycle, reinforced governance oversight at both Board and Management levels, and aligned our operating model with national and global development frameworks. Importantly, the growing confidence of development partners and investors in UDB as a trusted channel for climate and impact capital validates this strategic shift as both credible and value-creating.

JA: Would you like to highlight the specific impact UDB is delivering and aiming to scale up in the coming years?

PO: The Uganda Development Bank is playing a transformative role in improving the quality of life of Ugandans by channelling strategic financing into productive sectors of the economy, strengthening enterprise growth, and delivering measurable social and economic outcomes that directly benefit communities across the country. By channelling capital into SMEs through risk capital and incubation, and extending business development support, UDB is unlocking entrepreneurship and accelerating private sector competitiveness.

Through targeted investments, UDB goes beyond providing patient capital to Ugandans for stimulating real economic activity, expanding the tax base, and contributing meaningfully to GDP growth. Investments in technology, green transformation, and infrastructure are positioning the economy for higher productivity, global competitiveness, and long-term resilience. 

Crucially, UDB’s impact is inclusive and geographically balanced. Significant resources are directed towards women and youth employment, as well as projects located outside the Kampala metropolitan area, ensuring that economic growth reaches underserved regions. Collectively, these outcomes demonstrate that UDB is not only funding projects but also delivering real, lasting impact, improving livelihoods, expanding opportunity, and contributing meaningfully to Uganda’s sustainable development.

At the same time, UDB’s strong corporate performance demonstrates financial sustainability and effective stewardship of public capital, ensuring continued capacity to deliver development impact. Environmental investments further reinforce a transition towards a low-carbon, climate-resilient growth model. Together, these outcomes underscore UDB’s role as a catalyst for inclusive, sustainable, and future-ready economic development in Uganda.

I like to highlight some of the socioeconomic impacts we are making. In 2024, a significant majority of supported enterprises demonstrated strong compliance with Occupational Safety and Health standards, with 74% meeting required measures. Additionally, 83% of workers employed by funded clients earned incomes above the poverty threshold, indicating improved welfare and living standards of workers.

In entrepreneurship and innovation, UDB supported the growth of small and medium-scale enterprises by financing 173 SMEs, with total investments amounting to UGX 82.96 billion. Risk capital played a key role, with UGX 67.05 billion extended to 101 businesses. Innovation was further encouraged through the incubation of 72 projects, while 34 enterprises received targeted business development support from UDB.

We are advancing inclusive prosperity. Economic inclusion was strengthened through the creation of 17,221 jobs for women and 33,332 jobs for young people. Of the youth jobs created, 27,665 were high-paying positions, offering earnings at least 50% above the poverty line. Substantial resources were directed to underserved and non-metropolitan areas, with UGX 31.82 billion approved for underserved regions and UGX 193.3 billion allocated to 129 projects outside the Kampala metropolitan area.

Our economic scorecard is quite robust. We are strengthening the real economy. In 2024, UDB approved UGX 69.6 billion in financing for SMEs and supported 16 start-up enterprises through a blend of debt and equity. Overall, UGX 104.4 billion was allocated to start-ups, reinforcing early-stage business growth. Businesses financed by UDB generated a combined turnover of UGX 6,051 billion, contributed UGX 316 billion in tax revenues, and accounted for approximately 3% of national GDP based on total turnover.

We are driving a high-income, competitive, and future-ready economy. Significant investments were directed towards upgrading productivity and competitiveness. UGX 46.4 billion supported technological adoption and green transformation among SMEs, while UGX 70.6 billion was approved to strengthen local contractors. Additional funding of UGX 28.3 billion was deployed into mobility and transport projects, complemented by UGX 67.05 billion in risk capital to accelerate innovation and scalable enterprises.

We are enhancing Uganda’s economic resilience. UDB-funded projects generated foreign exchange earnings amounting to UGX 1,109 billion, contributing to balance-of-payments stability and macroeconomic resilience.

The impact on corporate performance is also considerable. UDB allocated UGX 1,644 billion across its loan, advances, and investment portfolio, generating UGX 147 billion in net interest income. Operational efficiency remained strong, with a cost-to-income ratio of 49%, including impairments and 31% excluding impairments. Asset quality was maintained at a loan impairment ratio of 6.25%. Overall profitability stood at UGX 57 billion, delivering a return on assets of 3.26%.

In terms of environmental impact, UDB advanced climate action through substantial green financing. UGX 103.0 billion was approved for low-carbon manufacturing and agro-industrialisation, UGX 63.9 billion supported climate-smart agriculture, and UGX 140.1 billion financed climate-resilient infrastructure. In addition, UGX 3.66 billion was directed towards eco-tourism initiatives, promoting sustainable use of natural resources.

Looking forward across the years of our new Strategic Plan 2025-2029, the Bank will adopt Demand Generation and Program-Based Financing – a programmatic approach to demand creation, focusing on a clear, long-term vision for the country. This approach will target specific value chains and systems, identifying and addressing constraints at various stages of these value chains. It will ensure well-coordinated engagement with stakeholders and players, develop a clear theory of change for each intervention, and establish a robust framework for reporting, monitoring, and evaluation. Additionally, a strong sustainability mechanism will be in place to ensure the long-term impact of these interventions.

Using the demand generation approach, UDB will target creating and financing sustainable, high-impact projects or activities to deliver rapid and significant socio-economic development impacts. This approach will address fragmented and uncoordinated interventions, which are characterised by limited high-value addition, limited backward integration and forward linkages and hence have a relatively less impact.

JA: As the Chairperson of the Association of African Development Finance Institutions (AADFI), what do you think are the strategic imperatives for development finance to deliver on economic and social impact on the continent?

PO: The strategic priorities for development finance in Africa focus on building resilience, sustainability, and innovation within Development Finance Institutions (DFIs). At AADFI, we believe that only strong, resilient, and sustainable DFIs can contribute effectively to achieving sustainable development.

That is why we adopt the view that, to deliver economic and social impact, our DFIs must first be sustainable institutions. In this regard, AADFI is guiding its members in integrating sustainability principles into their core operations. The AADFI Prudential Standards, Guidelines, and Rating System (PSGRS) is one of the tools helping us strengthen our institutions. The Association is also engaged with other proven transformative tools, such as the Sustainability Standards and Certification Initiative (SSCI), which help reposition and future-proof institutions for sustainability.

The second strategic imperative for African DFIs, especially national DFIs, is resource mobilisation. As you may know, Africa's development financing needs, particularly to meet the SDGs, are estimated at $1.3 to $1.7 trillion each year. With global capital flows to Africa becoming more limited, African DFIs must find new ways to mobilise resources. That is why the AADFI has shown great interest in helping its members leverage domestic resource mobilisation to secure funding for our development projects.

Collaboration and partnership among African DFIs are also crucial for delivering development impact. The DFIs should enhance partnerships and collaboration among national, regional, and multilateral DFIs to finance projects in countries, thereby significantly supporting regional integration and development.

JA: What support is AADFI offering its member institutions to foster sustainable growth and development of African economies?

PO: Through its various programmes, AADFI enhances the skills and competencies of professionals in African development finance institutions across key operational areas, ensuring they can perform effectively. These training courses cover topics like sustainability, governance, project preparation, appraisal, and innovative financing. The Association also utilises its network within the global development finance community to provide technical support.

AADFI leads efforts to engage key stakeholders in advocating for sustainable operating conditions for DFIs in Africa. We collaborate with national DFI authorities and highlight best practices for efficient DFI operations. 

The Association organises its CEO Forums for African DFIs and Annual General Assemblies and has established Communities of Practice (CoP), including the Working Group on Climate Change (WGCC) and the AADFI Economists Forum (AADFI-EF), to assist members in related, specialised areas within the working groups.

The AADFI Prudential Standards, Guidelines, and Rating System (PSGRS) was created to help African DFIs improve their governance, risk management, operations, and financial performance. The Association uses this tool to review the performance of DFIs, identify weaknesses for corrective actions, and build on their strengths. The Association also guides members in adopting sustainability principles and promotes the SSCI, one of the tested tools that helps institutions move toward sustainability, a key requirement for long-term growth.

AADFI actively promotes regional partnerships to catalyse investments, foster integration, and create networks for peer learning. These collaborations enhance the African DFIs’ ability to mobilise resources and finance transformative projects.

JA: UDB is leading the RISE program that promises to transform Uganda’s economy and society within a generation. Would you like to shed light on this?

PO: The RISE program represents a fundamental shift in how development finance is used to catalyse economic and societal transformation. Through the RISE Platform, we bring together innovators, financiers, regulators, industry leaders, and all stakeholders in the finance ecosystem to co-create opportunities that are both commercially viable and socially impactful. Under RISE, we will turn social, economic and environmental challenges into economic opportunities for everyone. It is a program that UDB is implementing with a strategic partner, the European Organisation for Sustainable Development (EOSD).

RISE is designed to mobilise like-minded stakeholders around high-value, innovation-driven, and technology-enabled solutions, working alongside UDB to build a strong pipeline of investable projects across priority sectors. The objective is to generate quality jobs, expand high-value exports, and strengthen Uganda’s long-term economic resilience and competitiveness.

Importantly, RISE is a practical vehicle for translating Uganda’s ten-fold growth ambition into action. By harnessing innovation, technology, and strategic capital, the program intends to position Uganda not only to keep pace with global economic shifts but also to emerge as a regional and global leader in high-value, innovation-led growth.

JA: There has been advocacy for gender inclusion in leadership. Would you like to share your perspective on this in the context of sustainability and your experience?

PO: Gender inclusion in leadership is unquestionably correlated with several socio-economic gains. At the macro level, according to a World Bank study, achieving gender parity in employment and pay could lead to a 20% increase in per capita GDP. At the micro level, more diverse, inclusive and equitable financial institutions can deliver better outcomes for clients, employees, and shareholders. Research and practice have proven that more inclusion (with women in leadership) drives innovations and financial performance, including ensuring that financial products meet the specific needs of women, thereby reducing gender gaps in financial inclusion. All these gains from gender inclusion in leadership strengthen the industry’s sustainability.

Although gender gaps still exist, with a long way to go to achieve parity, the industry has made commendable progress in gender inclusion in leadership. There is a growing recognition of the potential of women to lead and drive innovations. According to a recent study, 16% of financial institutions worldwide have female leaders. Using a case study of two development banks, 25 commercial banks, and eight tier-2 and tier-3 financial institutions in Uganda, we had eight female chief executives, eight female executive directors, and four female Board chairpersons. 

Wide disparities exist across Africa, with Nigeria, Kenya, and Rwanda leading in gender-inclusive leadership in the banking sector. Overall, leadership in the financial services sector has become more gender-inclusive than ever before. However, the rise in leadership positions held by women is largely in senior management positions, rather than executive positions, in most institutions. Women often easily put a foot in the door but face real hurdles in rising through the ranks to executive levels.

Among other factors, deeply rooted patriarchal societal settings, disproportionate burden of caregiving, persistent gender biases and stereotypes in the workplace, unequal access to opportunities, and poor enforcement of policy and legal frameworks continue to undermine gender inclusion and its sustainability in Africa.

The will for gender parity is evident, but the actual ways to realise it need to be streamlined. To improve gender inclusion in leadership and progress towards parity, as well as sustain it, the industry should be more intentional in building and growing the next generation of women leaders through mentorship and coaching, as well as other capacity-building initiatives targeting female leaders.

Creating and increasing network and partnership opportunities that foster the rise of women is critical, as promoting best practices in gender equality and inclusion in financial institutions also are. Advocating policies and practices that enhance women’s participation and leadership in the industry is also important.

JA: 2026 marks the beginning of the final five-year countdown to achieve the Sustainable Development Goals (SDGs). What is your outlook on what banks and financiers can do to enable Africa to make significant advances in development by the end of this decade?

PO: The final push toward 2030 demands a move from incremental financing to catalytic leadership. Banks and financiers must deliberately channel capital into sectors with the greatest development impact, such as climate-resilient infrastructure, sustainable agriculture, renewable energy, industrial value chains, and essential social services.

Equally critical is the use of blended-finance structures and risk-sharing mechanisms to mobilise private capital on a large scale. Development banks have a responsibility to deploy their balance sheets strategically to crowd in investment, reduce risk, and unlock projects that might otherwise remain unbankable.

By fully embedding sustainability, climate risk, and inclusion into financial decision-making, African financiers can help shift economies away from short-term consumption towards productive, resilient, and inclusive growth. That transition will be decisive if the SDGs are to be meaningfully advanced by the end of this decade.