The Uganda Development Bank Limited (UDB) was the first national development finance institution (DFI) in Uganda established under Decree No. 23 of 1972 (later the Uganda Development Bank Act Cap. 56 of 1972), which Act sought to “establish the Uganda Development Bank and the Credit Guarantee Fund and for other matters connected therewith”.

The main objective of UDB was to promote and finance investment in various commercial sectors of the economy with particular emphasis on agriculture, industry, tourism, housing and commerce. In order to achieve its objective, UDB was empowered, by its statute, to provide financing in the form of loans and by way of equity participation using funds borrowed from both local and foreign sources. As per the decree that established it, UDB was required to finance projects that were technically feasible, commercially and economically viable and socially desirable. Priority was given to: