The Government has invested close to Shs11 trillion in wealth-creation initiatives aimed at transforming households, farmers, youth, women and businesses; the Ministry of Finance, Planning and Economic Development has announced.
Presenting the National Budget for the 2026/27 financial year at Kololo Ceremonial Grounds on Thursday, Finance Minister Henry Musasizi said the interventions are reducing barriers to economic participation and creating opportunities across the country.
At the centre of the government’s strategy is the Parish Development Model (PDM), which Mr Musasizi described as the most significant programme for eliminating subsistence living and expanding participation in the money economy.
“PDM is not merely a financing programme. It is a structural transformation programme. Its objective is to move households from subsistence to commercial production; from survival to enterprise; and from poverty to prosperity,” he said.
According to the minister, the Government has transferred Shs4.4 trillion to all 10,589 parishes across the country over the past five years as revolving capital. By the end of June, the programme is expected to have reached more than four million beneficiaries.
Mr Musasizi said the initiative is already improving household incomes, strengthening food security and creating local economic opportunities for Ugandans who previously depended on subsistence farming.
The next phase of the PDM will focus on increasing productivity, promoting value addition and improving market access for beneficiaries.
“My Ministry will seek policy guidance to ensure that underserved and densely populated parishes, particularly in urban areas, receive adequate funding,” he said. “We will also begin a gradual transition from Government transfers to a self-sustaining financial ecosystem, ultimately a PDM Bank, supported by strong repayment performance, governance and value-chain development.”
Additional Wealth-Creation Programmes
Beyond the PDM, the Government has continued to finance a range of wealth-creation funds and enterprise support programmes.
Under Emyooga, the Government has injected Shs760 billion in revolving funds, leading to the establishment of 7,148 SACCOs with more than 2.48 million members. The programme has accumulated savings of Shs95.3 billion, and an additional Shs100 billion has been earmarked for the 2026/27 financial year.
The iKatale Loan Facility, launched through the Microfinance Support Centre, is providing affordable working capital to market vendors and informal urban traders. The facility is currently being piloted in six major markets in the Kampala Metropolitan Area—Owino, Nakawa, Kalerwe, Busega, Nakasero and Ggaba—and offers loans at an annual interest rate of 8 percent. A nationwide rollout is planned for the next financial year.
Government also highlighted the success of the Small Business Fund, established in 2021 to help enterprises recover from the effects of the COVID-19 pandemic. The fund has disbursed more than Shs82.1 billion to over 4,000 small and medium enterprises, offering loans of up to Shs500 million at a 10 percent interest rate.
In the agricultural sector, the Agricultural Credit Facility has received Government contributions totaling Shs371.7 billion, leveraging cumulative disbursements of Shs1.35 trillion to more than 14,000 beneficiaries.
Mr Musasizi announced that the scheme will receive an additional Shs47.68 billion in 2026/27.
Large-scale farmers have also benefited from a financing scheme under which the Government pays interest on loans obtained from state-owned commercial banks. During the current financial year, Shs41 billion was allocated for interest payments, enabling 186 farmers cultivating more than 50 acres to access Shs169.1 billion in financing. The same amount has been budgeted for the next financial year.
UDB, Women and Youth Programmes Receive Boost
The Uganda Development Bank (UDB) remains a major driver of industrialisation and value addition, having received cumulative Government capitalisation of Shs1.6 trillion. The bank has extended more than Shs2.45 trillion in financing to over 600 businesses in agriculture, manufacturing, tourism, construction and services.
To further strengthen its lending capacity, Mr Musasizi said the Government has allocated an additional Shs442.2 billion to UDB in the 2026/27 budget.
Women entrepreneurs have also benefited from targeted financing. Through the World Bank-funded Generating Growth Opportunities and Productivity for Women Enterprises (GROW) Project, Shs133.14 billion in soft loans has been disbursed to 6,584 women-owned businesses.
Mr Musasizi said this complements Shs153.5 billion previously distributed under the Uganda Women Entrepreneurship Programme (UWEP), which has supported more than 244,000 women.
Youth-focused initiatives continue to expand as well. The Youth Livelihood Programme has financed nearly 25,000 projects benefiting more than 275,000 young people for Shs195.4 billion, while the Youth Venture Capital Fund has supported 57,849 youths.
Mr Musasizi said the Government has additionally established a Shs33 billion revolving fund for musicians and other creative artists to promote enterprise growth and job creation.
Teachers have not been left out of the wealth-creation drive. Mr Musasizi announced the release of Shs20 billion to private teachers’ unions to improve access to affordable credit, in addition to an earlier Shs25 billion provided to Walimu SACCO umbrella structures.
Shs2.49 Trillion Allocated for 2026/27
Mr Musasizi said the various wealth-creation interventions have significantly expanded access to affordable capital, strengthened enterprise development and created employment opportunities across the country.
To sustain the momentum, the Government has allocated an additional Shs2.49 trillion to wealth-creation programmes in the 2026/27 financial year.
The minister said the investment will accelerate the monetisation of the economy, increase productivity and expand wealth creation among Ugandans.
