The Uganda Development Bank (UDB) has called on tourism investors to capitalize on the affordable and long-term financing options available to develop Eastern Uganda's tourism attractions. According to Peter Watuwa, UDB Regional Manager for the Eastern Regional Office, the region boasts significant natural, cultural, and adventure tourism attractions that require patient capital to turn into viable businesses. These businesses can create jobs and support local economies.
Watuwa made these remarks during the World Tourism Day celebrations in Mbale on September 27. He emphasized that tourism is a value chain that connects various sectors, including accommodation, transport, agriculture, food production, creative industries, trade, and community enterprises. By investing in tourism, Watuwa noted that it has the potential to stimulate economic activity far beyond individual enterprises. This holistic approach can have a multiplier effect on the economy.
Uganda's tourism sector has shown remarkable growth, with tourism receipts reaching approximately Shs 5.83 trillion ($1.62 billion), surpassing pre-Covid-19 pandemic levels. The sector accounted for about 16 per cent of Uganda's total export revenues. This 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 is home to 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. These attractions create opportunities for investment in accommodation, conference facilities, specialized tourist transport, among others. However, the challenge lies in transforming these attractions into commercially viable tourism products supported by adequate infrastructure and services.
To achieve this, Watuwa emphasized the need for quality accommodation, reliable transport, compelling visitor experiences, and strong local supply chains. He noted that UDB is positioning itself to support investors who require longer periods to recover their investments. The bank offers working capital, asset financing, and long-term project financing, with project-financing tenors extending up to 15 years.
UDB also provides equity and other investment solutions, as well as project preparation, investor support, and enterprise advisory services. When financing tourism businesses, the bank considers the wider economic impact of projects. As of 2025, services, which include tourism, accounted for about 17 per cent of UDB's portfolio. This indicates the bank's commitment to supporting the growth of the tourism sector.
By leveraging patient capital and investing in Eastern Uganda's tourism attractions, investors can unlock the region's potential and contribute to the country's economic growth. The UDB's support for investors and focus on the wider economic impact of projects can help drive sustainable tourism development in the region. With the right investment, Eastern Uganda's tourism attractions can be transformed into thriving businesses that create jobs and support local economies.
Key points
- UDB offers patient capital to support tourism investors in Eastern Uganda.
- Eastern Uganda has several underdeveloped tourism attractions that require investment.
- Tourism sector accounted for 16 per cent of Uganda's total export revenues.
