UDB tips on patient capital

Uganda Development Bank (UDB) has urged tourism investors to take advantage of affordable and long-term financing to turn Eastern Uganda’s tourism attractions into viable businesses capable of creating jobs and supporting local economies.

Peter Watuwa, UDB Regional Manager for the Eastern Regional Office, said the region’s natural, cultural and adventure tourism attractions present significant investment opportunities, but require patient capital to develop competitive tourism enterprises.

Watuwa was speaking during the World Tourism Day celebrations in Mbale on September 27. He said tourism should also be viewed as a value chain that connects accommodation, transport, agriculture, food production, creative industries, trade and community enterprises.

“Tourism is much more than the movement of visitors. With the right investment, tourism has the potential to stimulate economic activity far beyond the individual enterprise,” Watuwa said.

Tourism receipts reached about Shs 5.83 trillion ($1.62 billion), surpassing pre-Covid-19 pandemic levels, while the sector accounted for about 16 per cent of Uganda’s total export revenues.

Watuwa said the growth presents an opportunity for investors to expand the range and quality of tourism products, particularly in regions such as Eastern Uganda where several attractions remain underdeveloped.

Eastern Uganda has several attractions that could support increased investment, including Mount Elgon National Park, Sipi Falls, the Source of the Nile, Pian Upe Wildlife Reserve, Tororo Rock and the Nyero Rock Paintings.

According to UDB, these attractions create opportunities for investment in accommodation, conference facilities, specialised tourist transport, among others. Watuwa said the challenge was to transform the attractions into commercially viable tourism products supported by adequate infrastructure and services.

“The opportunity before Eastern Uganda is to convert its extraordinary tourism assets into investable products and experiences. This requires quality accommodation, reliable transport, compelling visitor experiences and strong local supply chains,” he said.

He said UDB was positioning itself to support investors who require longer periods to recover their investments. UDB provides working capital, asset financing and long-term project financing, with project-financing tenors extending up to 15 years.

The bank also provides equity and other investment solutions, as well as project preparation, investor support and enterprise advisory services. Watuwa said the bank considers the wider economic impact of projects when financing tourism businesses. As of 2025, services, which include tourism, accounted for about 17 per cent of UDB’s portfolio.

The post UDB tips on patient capital appeared first on The Observer Media Ltd.