Uganda Development Bank (UDB) has urged tourism enterprises and prospective investors in Eastern Uganda to leverage affordable and patient capital to develop competitive businesses, strengthen tourism value chains and drive sustainable socio-economic transformation.
The national Development Finance Institution said Eastern Uganda’s diverse natural, cultural and adventure tourism assets present significant investment opportunities as Uganda seeks to build on the sector’s strong recovery to attract more private-sector investment, create jobs and stimulate local economic development.
Speaking during the World Tourism Day celebrations in Mbale, Peter Watuwa, Regional Manager at UDB’s Eastern Regional Office, said tourism’s wide-ranging links to other sectors make it strategically important to Uganda’s development ambitions.
“Tourism is much more than the movement of visitors. It is an economic value chain connecting accommodation, transport, agriculture, food production, creative industries, trade and community enterprises. With the right investment, tourism has the potential to stimulate economic activity far beyond the individual enterprise,” Watuwa said.
Uganda’s tourism sector has recorded strong growth, with international tourist arrivals rising by 19.7 per cent to 1.64 million in 2025.
Tourism receipts reached approximately Shs5.83 trillion ($1.62 billion), surpassing pre-pandemic levels, while the sector accounted for approximately 16 per cent of Uganda’s total export revenues.
Watuwa said the performance demonstrates the sector’s resilience as well as the scale of the investment opportunities available.
“Uganda has demonstrated that it has a globally competitive tourism proposition. The next frontier is to deepen investment across the value chain, improve the quality and diversity of our tourism products, increase visitor expenditure and ensure tourism generates greater economic value for businesses and communities,” he said.
He said one of the major constraints facing the sector is access to appropriately structured, long-term capital, an area in which UDB plays a catalytic role.
As Uganda’s national Development Finance Institution, UDB provides financial and non-financial solutions to enable viable enterprises to expand productive capacity, improve competitiveness and deliver measurable development impact.
The bank recognises that tourism investments such as hotels, lodges, conference facilities, specialised transport and destination infrastructure often require substantial upfront capital and longer investment periods.
“Tourism requires patient capital because many investments take time to mature. Our role is to provide financing that enables viable businesses to invest for the long term while generating sustainable economic and social returns,” Watuwa said.
UDB provides working capital, asset financing and long-term project financing, with project-financing tenors extending up to 15 years. The bank also offers equity and other investment solutions where appropriate.
Beyond financing, UDB provides project preparation, investor support and enterprise advisory services, among other specialised support services.
Watuwa said the bank assesses not only the commercial viability of investments but also their broader development impact.
“When UDB finances a hotel, the impact extends beyond the hotel. It creates employment, generates demand for agricultural produce, creates opportunities for transporters and service providers, and supports local suppliers. Our objective is to finance commercially viable enterprises that improve productivity and create lasting economic opportunities for Ugandans,” he said.
As of 2025, services, including tourism, accounted for approximately 17 per cent of UDB’s portfolio.
Eastern Uganda is particularly positioned for increased tourism investment because of its concentration of natural, cultural and adventure attractions.
The region is home to Mount Elgon National Park, Sipi Falls, the Source of the River Nile, Pian Upe Wildlife Reserve, Tororo Rock and the Nyero Rock Paintings, alongside its cultural heritage and growing opportunities in adventure and agro-tourism.
The attractions present investment opportunities in accommodation, conference facilities, specialised tourist transport, adventure tourism, cultural experiences, farm stays, coffee tourism and related 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,” Watuwa said.
UDB has expanded its regional presence through its Eastern Regional Office in Mbale, bringing development finance and enterprise support closer to businesses and prospective investors.
Speaking at the celebrations, the Minister of Tourism, Wildlife and Antiquities, Hon. Tom Butime, underscored the importance of affordable capital in attracting private-sector investment.
“We need affordable capital that allows investors to build facilities whose returns accumulate over many years. We seek stronger government support for the events and MICE industry, including affordable capital, investment incentives and infrastructure capable of attracting and hosting more major events,” Hon. Butime said.
President Yoweri Museveni also emphasised the need to position tourism as an investment and trade opportunity.
“We should not only tell the world to visit Uganda. We should also tell the world to invest in Uganda, trade with Uganda and build partnerships with Uganda,” President Museveni said.
Watuwa said the combination of growing tourism demand, Eastern Uganda’s largely untapped tourism assets and access to development finance presents a significant opportunity for private-sector investment.
