Uganda Development Corporation was initially established in June 1952 by an Act of Parliament Cap. 326 of the laws of Uganda to facilitate the industrial and economic development of Uganda. This was done by promoting and assisting in the financing, management or establishment of: new undertakings; schemes for the better organization, modernization or/and the more efficient carrying out of any undertaking; and conducting research into the industrial and mineral potentialities of Uganda. However, the political, social and economic upheavals that afflicted the country in the 1970s to mid-1980s did not spare the Corporation and its investments. The political unrest of the 1970s put toll to UDC’s performance like any other investments of the time. In the context of the wider economic recovery programme (1987), privatization and liberalization policies were pursued. This process saw virtually all the investments of UDC divested; and the Corporation eventually wound up in 1998
Patrick B. Birungi, PhD Executive Director
Looking at the history of UDC and its successes in driving Uganda’s industrial agenda, this enriched the debate and arguments for its revitalization. Among the reasons for its re-establishment is derived from the central role state enterprises and corporations play in driving industrial and economic development goals of other countries. It was against this background that the debate for revitalization of Uganda Development Corporation (UDC) as the INVESTMENT ARM OF GOVERNMENT to support the country’s industrialization and economic development strategy was rekindled. UDC was re-established in 2008 under the auspices of the National Industrial Policy. Consequently, the UDC Act 2016 (NB: put a link directing to the Act) was enacted giving a rebirth to the UDC. It was officially launched in 2018 by H.E Yoweri Kaguta Museveni.
Its mission is to make long-term investments in strategic sectors of the economy in order to stimulate industrial and economic development and private sector growth. This mission includes sometimes investing in strategic sectors of the economy that are not attractive to the private sector due to the required high initial investment costs, low returns on investment and long break-even periods.
The Corporation is governed by the Board in line with the UDC Act and management is headed by an Executive Director; with its investment program and operations guided by a strategic business plan.
UDC’S CONTRIBUTION TO THE ECONOMY; The Corporation is set up with the primary objective of promoting and facilitating industrial and economic development of Uganda by building capacity, creating synergies in the sector, creating jobs, implementing the import substitution strategy, and providing support services to manufacturers. The key role is to stimulate investment in crucial economic areas where private sector cannot handle