UDB SDGCA PARTNERSHIP Presentation Structure Who We Are
UDB – SDGC/A PARTNERSHIP
Presentation Structure Who We Are Our Mandate Our strategy: Linkage to SDGs UDB Size, Performance & Impact UDB Partnership with SDGC-A Initial Deliverables & Status
UDB: Who We are • 100% Government- owned DFI • Uganda’s National Development Bank • Non-regulated FI Inspiring Development
UDB is mandated to… 1 Profitably promote and finance viable economic development in Uganda, by assisting in establishment, modernization, expansion of key sectors, provide advise to clients in relation to the above 2 Provide short, medium and long term secured loans 3 Acquire shareholding in viable businesses 4 Make funds available for reinvestment by selling any investment of the company as and when appropriate
Our Strategy: Linkage to National Development Plan & SDGs Agriculture Infrastructure Tourism Inspiring Development Manufacturing Human Capital Development
UDB: PERFORMANCE & IMPACT Financial Performance Socio-economic Impact
q Fitch Rating 2018 (inaugural): B+ q AADFI Rating 2018: A+ rating (Best performing DFI) q Corporate Governance 2018: Runner-up q Financial Reporting (Fi. Re) Awards Uganda, 2018 • Winner (Banking services); • Overall: 2 nd runner-up Excellent Financial reporting q Other Recognition: • Sustainable Finance Award (Group Lending Program); • Admission to the SSCI (one of 4 pioneer FI’s in the world)
UDB PARTNERSHIP WITH SDGC/A
UDB PARTNERSHIP WITH SDGC/A August 2017 • UDB and SDGC-A sign 3 -Year Mo. U; the terms: • Objectives: a) Long-term collaboration: Development/adaptation of best practices, knowledge and policies b) Enhance UDB institutional capacity: identify, analyze, finance SDG-related projects • Initial Period: Expectations 1) Needs assessment of UDB within SDG context 2) Regulatory & supervisory framework 3) Project Appraisal methodology 4) Funding Strategy
DELIVERABLES FOR INNITIAL PERIOD Needs Assessment Project Appraisal Approach • On-site institutional assessment • Interviews with key UDB stakeholders • Review of UDB’s 2018 -22 Strategic Plan • End-to-end review of the UDB policy framework Approach • Review of UDB credit policy, project appraisal and related process map • Review of related documentation incl. due diligence checklists, appraisal report, et al Outcome ü Varied inputs into organizational strategy – alignment to SDG’s ü Inputs into UDB policy framework ü Improved institutional awareness (alignment to SDG’s) Outcome ü Project Appraisal Manual – now integrated within UDB process * Project alignment to NDP II & SDGs * M & E framework to scope impact ü Financial Analysis guidelines ü Project appraisal report template
DELIVERABLES FOR INNITIAL PERIOD Regulatory Framework Approach • Review of regulatory frameworks for DFIs – incl. rationale, challenges, regulatory options, et al Outcome ü Proposed regulatory and supervisory framework submitted to the Bank of Uganda (Bo. U) q Bo. U has undertaken other related activities (incl. research and benchmarking activities) to inform a comprehensive DFI regulation q Draft regulatory framework under consideration by line ministry Funding Strategy Approach • Review of UDB capitalization gap Vs - UDB growth aspirations; - Other DFIs (capital Vs GDP); - Funding mix (diversification); Outcome ü Comprehensive Funding Strategy: § Diversification of funding sources § Diversification of shareholding / equity stake § Explore Debt options (incl. concessionary borrowing, blended finance, co-financing, capital markets, Green & SDG bonds
Reflections: A Healthy Partnership UDB better placed: • STRATEGY: (structure, policy, awareness) SDG– conscious • APPRAISAL: Ability to identify, analyze, finance SDG-linked projects; thus catalyze SDG adoption/implementation • FUNDING: Ability to explore/source/attract funds to actualize UDB’s SDG implementation mandate • M & E and REPORTING: Ability to scope, measure and report the impact generated • LINKAGES & COLLABORATION: Ability to identify with related -actors in the SDG implementation • REGULATION (when adopted): will see improved efficiency, governance & institutional opportunities
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