Global critical thinkers, policymakers, financiers, and changemakers convened in Kampala to forge a new path to development finance in Africa. The Uganda Development Finance Summit, the first of its kind in Uganda, promises to reshape the trajectory of Africa’s development narrative.
Under the theme: “Transforming Africa Through National Development Finance Architecture,” the two-day Summit, comes at a time of profound global economic shifts. Traditional aid is diminishing, access to international capital is becoming more constrained, and the urgency to create self-sustaining, inclusive economic models has never been greater especially for the African continent.
This convening provides a platform for bold, practical dialogue on how Africa can reimagine its development pathways by strengthening the institutions that mobilize, allocate, and direct long-term capital.
At the heart of the Summit is a deep recognition that development finance is not just about capital. It is about confidence, coordination, and clarity of purpose. It is about building an ecosystem where finance is a catalyst for productivity, inclusion, resilience and self-reliant growth.
President Yoweri Museveni who presided over the opening ceremony on Monday argued for national development banks, stating that this solves the problem of a fragmented market which has derailed Africa’s economic advancement. He explained that for businesses to be successful, they need low input costs, low cost of electricity, low cost of money and low cost of transport. Even importantly, he said businesses need market for what they produce, which an integrated Africa would solve.
“From the beginning, I could see that relying on the private sector to be the one to bring money, to deal with wealth creation, after you have dealt a bit with infrastructure, was not correct. There was a mistake there. Because your own people did not have the savings, and even when they have money, they squander it,” the President said.
He added; “Foreign investment could not easily be attracted compared to, for instance, China. So that’s why, from the beginning, I said, we need a UDB, we need an Ojangole. We need a government institution which is not looking for profit, to keep giving some capital, not only for infrastructure, but even for wealth creation.”
“If we were to put more money into UDB, it is correct. Because if you say private capital, my question in law is private capital, who is it?” the President wondered.
President Museveni cited the challenge where private capital, which is often expensive and short-term has enabled an import-reliant economy as businesses resort to enterprises that can make a profit quickly.
“That’s the only way you can make money quickly. You buy wine, spirits and perfumes, because these are the only products where you can be able to pay back at high interest rates. Therefore, the answer for all this is UDB. This one is a sure guarantee because it (the Bank) is ours. All the others may come, may not come, but they are not under our control.”
The President recognized UDB’s role in stimulating private businesses, especially those that require long term capital that is patient and encouraged UDB to reduce its interest rate to 10 percent.
President Museveni identified four economic sectors – commercial agriculture, manufacturing, services, and ICT – which he argued are a sure way to unlock Africa’s economic potential.
“Commercial agriculture, manufacturing and artisanship, services like hotels and so on, and ICT. This is where the wealth is. Of course, with very rich people, they can also own roads. You can have somebody owning the road and takes the road tolls. But for us, if we have business in agriculture, in manufacturing or artisanship, in services, and ICT, that’s where things are easier now.”
President Museveni was flanked by First Lady, Janet Museveni. The event was also attended by Minister of Finance, Planning and Economic Development, Matia Kasaija and State Minister for Investment and Privatization, Evelyn Anite among other dignitaries.
Dr. Patricia Ojangole, the Managing Director, Uganda Development Bank said the Summit is a pivotal moment in Africa’s history, a moment that demands bold reflection, decisive action, and unwavering commitment to reshaping our destiny.
“Aspiration Two of Agenda 2063 of the Africa Union calls for an Africa that shall be a continent where the free movement of people, capital, goods and services will result in significant increases in trade and investments amongst African countries rising to unprecedented levels, and in the strengthening of Africa’s place in global trade. It further aspires towards growing the continent’s share of global trade shall rise from 2% to 12% by 2045,” Dr. Ojangole said.
“Realizing these aspirations requires a national development finance architecture that integrates public and private sector efforts, fosters innovation, enhances technical capacity, and prioritizes local leadership and ownership,” Dr Ojangole added.
She said National Development Banks (NDBs) and African DFIs will play a stronger role as catalysts, blending local capital with global partnerships to attract investment and scale transformative projects.
This year, Africa will be the second-fastest-growing region globally. The African Development Bank projects an annual economic growth rate of 4.3 per cent, up from 3.7 per cent last year, with East Africa once again projected to be the most buoyant region.
The continent is brimming with potential: a young, dynamic population, vast natural resources, and innovative spirit that could propel itus toward prosperity. Yet, its journey toward sustainable, inclusive, and self-reliant development is hindered by a finance ecosystem that too often falls short of its aspirations.
In a keynote address themed Transforming Africa through National Development Finance Architecture, Arshad Rab, CEO and Chairman, European Organisation for Sustainable Development, delivered a thought-provoking analysis of prevailing financing practices.
“The underlying issue that will determine the future of this country, this continent and those beyond this continent, the world will be what kind of development we want. This issue needs to be addressed before we discuss how to finance it and what kind of finance architecture is required,” said Arshad.
He said that to make capital markets work for the real economy, please do not copy and paste from the established capital markets in New York or London. Adding that if African countries are to make the markets work for the real economy, there is the need for innovative funding mechanisms and instruments and for establishing an ecosystem from incubation to initial public offering.
“The high cost of capital – 20-30 percent interest rates in many economies in Africa – does not permit an entrepreneurial boom in the formal sector, which is urgently required to grow GDP, create good jobs, and balance the budget,” he added.
Africa requires an estimated $1.3 trillion annually to achieve the Sustainable Development Goals by 2030, including $68 to $108 billion yearly for infrastructure alone, according to the 2024 Africa Sustainable Development Report.
This annual sustainable financing gap is equivalent to 7% of Africa’s gross domestic product (GDP) and 34% of its investments in 2021. The annual gap equals less than 0.2% of the global and 10.5% of the African-held stock of financial assets.
With the commodity price boom, the global financial crisis and the COVID-19 pandemic, the emphasis has shifted towards the requirements for sound macroeconomic management in the face of commodity and oil price volatility, demand reductions in the major markets for African exports and appropriate trade and industry policies for the structural transformation of economies in Africa, given changes in globalization.
At the same time, Official Development Assistance (ODA) – regarded as one of the most stable and predictable sources of external financing for developing countries, especially in times of crisis – has suffered pressure in the wake of recent international crises that have brought a downturn in economic growth, rising inflation and other macroeconomic challenges.
International aid from official donors fell in 2024 by 7.1% in real terms compared to 2023, the first drop after five years of consecutive growth, according to preliminary data collected by the Organisation for Economic Co-operation and Development (OECD).
In Africa, this aid assistance declined by 4.1 per cent in 2022, despite a global increase of 22 per cent, reaching a record high of $287 billion, according to United Nations data. This was the result of a shift towards the allocation of more aid budgets to meet the socioeconomic needs of refugees and asylum seekers in donor countries.
At the Uganda Development Finance Summit, discussions centered on industrial policy, technological disruption, green growth, agricultural transformation, and private sector competitiveness, the Summit generated tangible insights and actions that reflect Africa’s context, capacity, and ambitions.
The Summit also serves as a critical forum for exploring Africa’s demographic dividend, labour market shifts, and the need to create competitive advantage in an increasingly uncertain global trade environment.
Speakers included DFI leaders, financial experts, development organizations, venture capital funds, experts in green finance, leaders in academia, Ministers, policymakers, business leaders, heads of Corporations, among others.
The Uganda Development Finance Summit is a strategic call to action. It is an invitation for governments, development finance institutions, the private sector, and development partners to think differently, act boldly, and lead decisively.
Uganda Development Bank Limited (UDB) is the country’s national Development Finance Institution (DFI), tasked with accelerating socio-economic development through sustainable financial and non-financial interventions, including debt and equity. UDB also provides non-financial services aimed at enhancing enterprise investment readiness. Supporting projects within the private sector that demonstrate potential for high socio-economic impact—such as job creation, boosted production, increased tax revenue, and foreign exchange—aligns with the Bank’s mandate. These projects focus on priority sectors of Uganda’s economy and support national development goals.
UDB’s sector priorities align with the National Development Plan III (NDP III), focusing on Primary Agriculture, Industry (including agro-industrialization, manufacturing, knowledge industries, and extractives), and Services (health, tourism, hospitality, education, science, technology, and innovation), alongside Infrastructure. Agriculture, agro-industry, and manufacturing account for about 75% of UDB’s portfolio, closely aligning with government priorities under NDP III and Vision 2040.
