Expensive capital in logistics
Ring-fence a measurable portion of UDB funding (for example 10%) exclusively for logistics modernisation, with concessional rates tied to green logistics technology
Agreed, but implementation has not begun.
Where this stands
UGX 1 trillion additional UDB funding earmarked FY 2025/26.
Why this reform was agreed
High financing costs for fleets, warehouses and equipment limit modernisation. There is a lack of tailored bank products for logistics, and UDB is not sufficiently capitalised to meet the high capital investment the sector requires.
Ongoing and planned interventions
The Private Sector Development Programme under NDP IV focuses on lowering financing costs by capitalising and strengthening UDB and UDC, which provide low-interest loans and invest in strategic sectors. Government earmarked UGX 1 trillion in extra funding to UDB in FY 2025/26.
Progress updates
No progress updates recorded yet
Updates are published as the lead institution confirms movement on this action.