The Uganda Development Bank (UDB) has urged tourism operators, entrepreneurs, and prospective investors in Eastern Uganda to take advantage of affordable and patient capital to unlock the region's vast tourism potential. This call was made during World Tourism Day celebrations held in Mbale, where UDB highlighted the growing opportunities presented by Eastern Uganda's natural, cultural, and adventure tourism attractions. According to Peter Watuwa, Regional Manager of UDB's Eastern Regional Office, the tourism sector should be viewed as a broad economic value chain capable of stimulating activity across several sectors.
Watuwa emphasized that tourism is much more than the movement of visitors, as it connects accommodation, transport, agriculture, food production, creative industries, trade, and community enterprises. He explained that increased investment in tourism facilities and services would create opportunities for farmers, transport operators, food suppliers, artisans, entertainers, and other small and medium-sized businesses that depend on the sector. This, in turn, would transform the sector into a stronger driver of employment, investment, and local economic development.
Uganda's tourism industry has demonstrated considerable resilience following the disruption caused by the COVID-19 pandemic. International tourist arrivals increased by 19.7 percent to 1.64 million in 2025, while tourism receipts rose to approximately UGX 5.83 trillion, equivalent to USD 1.62 billion. The tourism sector also accounted for approximately 16 percent of Uganda's total export revenues. Watuwa stated that these performance figures point to a growing investment opportunity in the sector.
However, Watuwa stressed that more investment is required to increase the quality and diversity of tourism products. He said Uganda has demonstrated that it has a globally competitive tourism proposition, but the next frontier is to deepen investment across the value chain, improve the quality and diversity of tourism products, increase visitor expenditure, and ensure tourism generates greater economic value for businesses and communities.
One of the major challenges facing tourism investors is access to appropriately structured, affordable, and long-term financing. Tourism projects often require substantial capital before they begin generating sufficient returns. UDB provides working capital, asset financing, and long-term project financing, with project-financing tenors extending up to 15 years. The Bank also offers project preparation, investor support, and enterprise advisory services intended to help businesses improve their capacity and prepare viable investment projects.
Investment in a single tourism enterprise can generate economic opportunities across several other sectors. When UDB finances a hotel, for example, the impact extends beyond the hotel, creating employment, generating demand for agricultural produce, and supporting local suppliers. Watuwa added that UDB's objective is to finance commercially viable enterprises capable of improving productivity while creating sustainable economic opportunities for Ugandans.
Eastern Uganda was identified as one of the regions with considerable potential for increased tourism investment due to its concentration of natural, cultural, and adventure attractions. The region hosts a range of destinations, including Mount Elgon National Park, Sipi Falls, and the Source of the River Nile. UDB encourages tourism businesses and prospective investors with viable projects to explore available financing and advisory solutions as they seek to expand their operations.
Key points
- UDB calls on tourism operators in Eastern Uganda to tap into affordable and patient capital to unlock the region's vast tourism potential.
- Uganda's tourism industry has shown resilience, with international tourist arrivals increasing by 19.7 percent to 1.64 million in 2025.
- UDB provides patient capital with longer repayment periods to support tourism investments that take time to mature.
