President Museveni Opens Inaugural Uganda Development Finance Summit

President Yoweri Kaguta Museveni has emphasized the central role of development finance institutions in Africa’s transformation, calling on planners and financiers to balance infrastructure spending with “results-generating projects” that draw millions of Ugandans into the money economy.

The President, accompanied by the First Lady and Minister of Education and Sports, Maama Janet Kataaha Museveni, made the remarks while officially opening the inaugural Uganda Development Finance Summit at the Commonwealth Resort, Munyonyo.

The two-day summit, hosted by the Uganda Development Bank (UDB), brought together policymakers, development financiers, private sector leaders, and international partners to deliberate on how development finance can accelerate Africa’s socio-economic transformation.

Highlighting Uganda’s recent fiscal priorities, President Museveni noted that resources had been redirected to the Parish Development Model (PDM) to support rural households to join the money economy. He urged planners to balance infrastructure projects with initiatives that directly increase productivity.
“You can have a nice road, but if there is no production, there will be nothing to transport,” he observed.

The President also faulted past technocrats for emphasizing social infrastructure while neglecting critical enablers such as electricity and railways, stressing that rational development financing should prioritize affordable transport and energy.

Tracing the rationale for UDB’s creation, he said private savings and foreign direct investment were insufficient to drive industrialization, making a national development bank necessary to provide patient capital for sectors that generate wealth—commercial agriculture, manufacturing, services such as tourism and ICT, and artisanship.

On the continental stage, President Museveni underscored the importance of market integration for Africa’s transformation, warning against resource export without value addition. Using coffee as an example, he said African countries lose billions by exporting raw commodities instead of processed goods.

He further called on international financiers to provide long-term affordable capital, citing Chinese-funded projects like Isimba and Karuma hydropower dams as examples of transformative financing. He also criticized commercial banks for high interest rates, describing them as “engines of Africa’s dependence.”

Finance Minister Hon. Matia Kasaija echoed the President’s remarks, noting Africa’s strong growth prospects. He projected Uganda’s GDP, nearly $50 billion in 2023, to rise to $500 billion by 2040, driven by agro-industrialization, tourism, mineral development, oil and gas, and ICT innovation.

UDB Managing Director Dr. Patricia Ojangole stressed that development banks are essential for building resilient and inclusive financial systems. She pointed out that while commercial banks allocate 45% of credit to non-productive sectors like real estate, UDB directs over 80% of its financing to agriculture, manufacturing, energy, water for production, education, and health.

UDB Board Chairman Mr. Geoffrey T. Kihuguru added that development finance institutions are uniquely positioned to expand inclusion, finance underdeveloped regions, and drive industrialization amid global crises.

The ceremony was attended by senior government officials, Members of Parliament, diplomats, and leaders of development finance institutions and partner organizations.