Uganda Development Bank (UDB) has reopened prequalification under its UGX 150 billion Local Contractors Financing Initiative, a strategic programme designed to strengthen the capacity of indigenous contractors to participate in and deliver major infrastructure and development projects across Uganda.
The initiative forms part of UDB’s broader commitment to advancing local content, promoting private sector growth and ensuring that Ugandan firms capture a greater share of value from the country’s infrastructure investments. Following strong interest from the market and the continued demand for affordable contractor financing solutions, UDB is undertaking a second prequalification exercise to expand the pool of eligible contractors and support a wider range of firms operating across strategic sectors of the economy.
The prequalification exercise seeks to identify eligible Ugandan contracting firms that will access tailored financial and non-financial support aimed at strengthening their capacity to successfully execute infrastructure and development projects across the country.
The Initiative is in response to the persistent challenges faced by local contractors, particularly limited access to affordable and patient capital, inadequate equipment financing, and capacity constraints that often hinder their ability to compete for and deliver large-scale contracts
According to the Private Sector Development Programme Annual Performance Report 2023/24, local suppliers accounted for 63 percent of public procurement awards, an improvement from 48 percent recorded in FY 2022/23 but still below the national target of at least 75 percent. The report attributes this gap largely to the limited capacity of local contractors to participate effectively in major procurement opportunities.
To address these challenges, UDB, in 2023 committed UGX 150 billion towards the Local Contractors Financing Initiative, implemented in partnership with the Uganda Institution of Professional Engineers (UIPE) and the Uganda National Association of Building and Civil Engineering Contractors (UNABCEC).
Through the Initiative, prequalified contractors have access to concessionary working capital, asset and equipment financing, performance guarantees, and other financial solutions offered at competitive terms. Beneficiaries will also receive capacity-building support, including training in project management, financial management, corporate governance, contract administration, and project programming.
“Ugandan contractors are central to Uganda’s industrialisation and infrastructure development agenda. However, many firms continue to face financing and capacity constraints that limit their ability to compete for and complete large infrastructure contracts. Through this Initiative, UDB is providing both the financing and institutional support required to build stronger, more competitive Ugandan firms capable of delivering transformative projects and contributing to sustainable economic growth,” said Sumin Namaganda, Senior Manager, Corporate Affairs, at Uganda Development Bank.
The Initiative targets contractors operating in strategic sectors including transport, energy and power, water and sanitation, agriculture, agro-processing, manufacturing, extractives, education, health, tourism and hospitality, telecommunications and digital connectivity, creative industries, and oil and gas.
By easing access to affordable financing and strengthening technical and managerial capabilities, the Initiative aims to increase local content participation, create employment opportunities, improve project delivery, and accelerate Uganda’s industrialisation agenda.
Since the launch of the Initiative, UDB has approved financing facilities amounting to UGX 59.03 billion, of which UGX 24.89 billion had been disbursed to qualifying contractors as of March 2026. The supported firms are implementing projects across key sectors of the economy, demonstrating the Initiative’s growing role in improving contractor capacity and increasing local participation in national development projects.
Call for Expressions of Interest
UDB therefore encourages all eligible Ugandan contractors to participate in the current prequalification exercise and position themselves to access the financing and support required to compete effectively for emerging infrastructural contracting opportunities. Ugandan contracting firms that meet the eligibility requirements are invited to submit Expressions of Interest for prequalification under the Local Contractors Financing Initiative.
Detailed eligibility criteria, application requirements, and submission guidelines can be accessed from the UDB Head Office or its branches in Hoima, Gulu and Mbale.
