The inaugural Uganda Development Finance Summit, held at the Commonwealth Resort Hotel in Munyonyo, has set the stage for a renewed conversation on how development finance can accelerate social and economic transformation across Africa. Hosted by the Uganda Development Bank (UDB), the two-day gathering brought together policymakers, financiers, private sector leaders, and international partners to deliberate on how to harness patient capital, visionary planning, and inclusive financial systems to drive the continent’s growth. – https://vm.tiktok.com/ZMA6uTc7R/
Balancing Infrastructure and Productivity
At the heart of the discussions was a clear call for balance. Africa has long grappled with the trade-off between investing in large-scale infrastructure projects and addressing the immediate need for productive, income-generating activities. Speakers at the summit argued that infrastructure, though essential, must be accompanied by initiatives that lift millions into the formal economy through affordable financing, commercial agriculture, and manufacturing.
The experience of Uganda’s Parish Development Model (PDM) was highlighted as an example of redirecting resources toward enabling communities to participate directly in production. As one expert put it, “A road without production is only half a solution. Finance must enable people to create what moves on that road.”
Why Development Banks Matter
The Uganda Development Bank’s role was repeatedly underscored as a central pillar in financing transformation. Unlike commercial banks, which pursue short-term profits and often lend at prohibitively high interest rates, national development banks are designed to provide affordable and patient capital, offering long-term financing that nurtures sectors where true wealth is generated.
In Uganda’s case, UDB has directed over 80% of its credit portfolio toward the agriculture, manufacturing, energy, water for production, education, and health sectors, which directly contribute to structural transformation. By contrast, commercial banks allocate nearly half their credit to non-productive areas such as real estate, perpetuating dependency and quick-return trade.
Dr. Patricia Ojangole, UDB’s Managing Director, emphasised that this mandate is not unique to Uganda. “Globally, the rise of Asia and the industrial growth of Brazil were propelled by strong development banks. Uganda was visionary in keeping the UDB alive when others closed theirs during the structural adjustment period. Today, that decision is paying dividends,” she said.
Confronting Africa’s Financing Gaps
The summit also spotlighted the irrationalities and limitations of global financing flows. Too often, African economies access loans for roads while transformative investments in electricity, railways, and pipelines remain unfunded. Experts warned that without rational infrastructure financing where rail carries cargo, pipelines move fuel, and roads serve passengers, Africa’s cost of production will remain uncompetitive.
This challenge is compounded by the continent’s limited domestic savings and fragmented markets. As several delegates noted, true transformation requires regional market integration to unlock economies of scale. Without integration, Africa risks remaining a producer of raw commodities while others capture value through processing and global branding.
The Call for Patient Capital
The Uganda Development Finance Summit made a compelling case for patient capital, long-term financing that prioritises development outcomes over short-term returns. This approach has already proven transformative in Uganda’s energy sector. Investments from Chinese financiers enabled the construction of Isimba and Karuma hydropower dams, slashing electricity tariffs and creating a foundation for industrial growth.
“Development is not an overnight achievement,” one participant remarked. “It requires vision, sacrifice, and long-term commitment. Patient capital is the bridge between today’s needs and tomorrow’s prosperity.”
Anchoring Africa’s Future
The deliberations also touched on Africa’s urgent need to move up the value chain. The example of coffee dominated the discussion: Uganda earns just $2.5 from a kilo of raw coffee, while the same product processed abroad fetches up to $40 as branded instant coffee. The message was clear: Africa must stop being a donor of cheap raw materials and start benefiting from its own resources.
President Museveni emphasised that Uganda’s trajectory toward a projected $500 billion GDP by 2040 hinges on transforming agriculture, industrialising raw materials, harnessing ICT-driven innovation, and leveraging tourism and mineral wealth. Development banks will remain central in financing these pathways.
Towards a Collective Vision
Beyond financial instruments, the summit underscored two indispensable qualities for Africa’s transformation: vision and integrity. Vision ensures that policymakers diagnose challenges correctly and prescribe solutions that drive collective development, while integrity guarantees that resources are deployed where they matter most.
The Uganda Development Finance Summit concluded with a consensus that development banks are not just financiers, they are architects of transformation. By channelling capital into productive sectors, integrating markets, and embracing innovation, Africa can unlock a future where growth is inclusive, sustainable, and resilient.
As the curtain fell on the inaugural gathering, the message was unmistakable: Uganda and Africa must reimagine development finance not as charity or profit-seeking, but as the patient fuel that powers transformation.
