The Uganda Development Corporation (UDC) has transformed under its industrialisation and economic growth strategy. Since 2016, UDC has ramped up its activity as the government’s investment arm, going from overseeing a single project to currently 18 investments covering a variety of sectors including agro-processing, infrastructure, hospitality, health, textiles and mineral beneficiation. Providing investment has not only promoted economic growth but impacted development on jobs, local enterprises and Uganda’s export markets.
During the second quarter (Q2) Financial Year 2024/25, the investee companies financed by UDC made significant progress in a number of key performance indicators. One major accomplishment was job creation. The portfolio of firms owned by UDC produced 508 new jobs, resulting in total employment of 4,546 workers, a rise from the 4,038 jobs reported in the first quarter (Q1). This 12.5% increase in employment is a significant boost for many individuals and families relying on these jobs for their livelihood. The generation of new direct and indirect jobs is a testament to the UDC’s contribution to consolidating the job market and combatting poverty in the country.
In addition, another field where UDC has recorded a good growth is in its commitment to the great use of local raw materials. UDC investee companies used 2,154 metric tons of locally produced agricultural products in Q2. This not only would provide a boost to the agriculture sector but also helps consolidate Uganda’s domestic supply chain that allows local industries to flourish and farmers to have a consistent market to supply. This local utilisation of raw materials is in line with UDC’s larger plan to help create a more self-sufficient economy, with less dependence on imports, which strengthens overall stability.
The Uganda Development Corporation’s initiatives to boost export revenue have been gaining traction. The total export earnings of the UDC investee Companies in Q2 was USD 336,106 compared to USD 275,793 in Q1. This surge reflects an increasing demand for Ugandan goods in global markets that generates crucial foreign exchange and improves the country’s trade balance. Uganda’s economic transformation must be attributed, to a large extent, to the diversification of its sources of income and its growing position in the global market, both of which have been accelerated by the expansion of Uganda’s export sector.
UDC’s investee companies are also of great importance to Uganda’s national development via tax payments. In Q2, these companies remitted UGX 16.7 billion in taxes, up from UGX 15.6 billion in Q1. Growing tax revenue is pivotal for funding public services including, but not limited to healthcare, education, and public infrastructure development. Investments in economic value through UDC have proven effective and such is demonstrated by national revenue, a strong signal to the market and our economy.
The second quarter results of UDC’s investee companies underscore the critical role that Uganda’s industrial projects play in the country’s growth. With its investments focusing on creating jobs, increasing exports and promoting local industries, UDC’s support is helping to build a more sustainable and prosperous future for the country. Through strategic investments, Uganda Development Corporation (UDC) continues to drive Uganda’s economic transformation, contributing to a more resilient and diversified economy.
