The Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank Group, has successfully disbursed a USD 30 million financing facility to Uganda Development Bank Limited (UDBL), marking its first Line of Finance transaction in Uganda and the broader East African region.
The strategic facility, structured under a long-term Commodity Murabaha arrangement, is aimed at empowering local Small and Medium Enterprises (SMEs) by providing medium- and long-term financing for productive investments. Key sectors set to benefit include agribusiness, education, healthcare, manufacturing, and investments in fixed assets such as land, buildings, and machinery.
“This landmark disbursement reinforces ICD’s commitment to fostering inclusive and resilient private sector ecosystems in our member countries,” said Nabil El-Alami, Communications and Corporate Marketing Manager at ICD. “It also paves the way for future collaborations between ICD and local financial institutions in Uganda.”
UDBL, a government-owned Development Finance Institution, plays a pivotal role in supporting Uganda’s National Development Plan (NDP). Its funding priorities focus on sectors critical to economic growth, including agriculture, infrastructure, tourism, manufacturing, education, and healthcare. By facilitating access to concessional finance, UDBL aims to stimulate job creation, sustainable development, and overall economic growth without prioritizing profit maximization over social impact.
The USD 30 million facility is expected to enhance the availability of capital for SMEs, encouraging productive investments that drive industrial development and broader economic benefits. With the support of ICD, Uganda is positioned to strengthen its private sector, attract co-financing opportunities, and leverage Islamic finance instruments to promote regional and cross-border investment.
ICD, based in Jeddah and established in 1999, has an authorized capital of USD 4 billion. Rated ‘A2’ by Moody’s, ‘A+’ by Fitch, and ‘A’ by S&P, ICD focuses on financing projects that contribute to economic development, promote competition and entrepreneurship, and mobilize international capital in member countries.
Source: Islamic Corporation for the Development of the Private Sector (ICD) / APO Group
