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Global critical thinkers, policymakers, financiers, and changemakers convened in Kampala to forge a new path for 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.
The Role of National Development Banks
President Yoweri Museveni, who presided over the opening ceremony on Monday, argued for the crucial role of national development banks, stating that they solve the problem of a fragmented market which has derailed Africa’s economic advancement.
He explained that for businesses to be successful, they need low costs for inputs, electricity, money, and transport. Even more importantly, he said, businesses need a 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 that foreign investment could not be easily attracted compared to countries like 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.”
The President also challenged the perception that private capital is the sole solution, stating, “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?”
He 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 is ours. All the others may come, may not come, but they are not under our control.”
President Museveni recognized UDB’s role in stimulating private businesses, especially those that require long-term, patient capital, and encouraged the bank to reduce its interest rate to 10%. He identified four economic sectors—commercial agriculture, manufacturing, services, and ICT—which he argued are a sure way to unlock Africa’s economic potential. “This is where the wealth is,” he stated.
The President 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.
Aspiration and Reality: The Financial Gap
Dr. Patricia Ojangole, the Managing Director of the Uganda Development Bank, said the Summit is a pivotal moment in Africa’s history, one that demands bold reflection, decisive action, and an unwavering commitment to reshaping the continent's destiny.
She referenced Aspiration Two of the African Union’s Agenda 2063, which calls for an Africa where the free movement of people, capital, goods, and services will lead to significant increases in trade and investment, and the strengthening of Africa’s place in global trade.
“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.
Managing Director of Uganda Develpment Bank ,Dr.Patricia Onjagole adresses delegates at the recently concluded UDB summit held at Speke Resort convention center Munyonyo
She noted that 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.
Africa is projected to be the second-fastest-growing region globally this year, with the African Development Bank projecting an annual economic growth rate of 4.3%, up from 3.7% 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 an innovative spirit that could propel it 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.
Insights for a Sustainable Future
In a keynote address themed, "Transforming Africa through National Development Finance Architecture," Arshad Rab, CEO and Chairman of the 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,” said Arshad. “This issue needs to be addressed before we discuss how to finance it and what kind of finance architecture is required.”
He urged against simply copying and pasting models from established capital markets in New York or London. He added that for African countries to make markets work for the real economy, there is a 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% 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 billion 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.
The Bank of Uganda Gorvnor Dr.Michael Atingi-Ego adresses delegates at the recently concluded UDB summit held at Speke Resort convention center Munyonyo
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 volatility and other challenges.
At the same time, Official Development Assistance (ODA)—regarded as one of the most stable and predictable sources of external financing for developing countries—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% in 2022, despite a global increase of 22%, 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 served as a critical forum for exploring Africa’s demographic dividend, labour market shifts, and the need to create a competitive advantage in an increasingly uncertain global trade environment.
Speakers included leaders from DFIs, financial experts, development organizations, venture capital funds, experts in green finance, leaders in academia, Ministers, policymakers, business leaders, and 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.