Diamond Trust Bank (DTB) Uganda and Universal Multipurpose Enterprises have signed a Memorandum of Understanding (MoU) aimed at expanding access to affordable housing and mortgage financing, a move expected to help address Uganda’s estimated housing deficit of 2.4 million units.
The partnership, formalized at DTB Uganda’s head office, brings together the bank’s newly launched Mortgage Finance solution and Universal Multipurpose Enterprises’ expertise in property development. The collaboration seeks to create a more structured and accessible pathway to homeownership and real estate investment for Ugandans.
Uganda’s mortgage market remains one of the smallest in Africa despite the country’s population approaching 50 million people. The sector accounts for less than one percent of the country’s Gross Domestic Product (GDP), reflecting the limited access many Ugandans have to formal housing finance.
Under the partnership, DTB Uganda will provide longer-tenure financing options for property developers while also offering tailored mortgage products for individual homebuyers and corporate employees. Universal Multipurpose Enterprises will complement these efforts by expanding the supply of quality housing developments.
The initiative comes at a time when commercial mortgage interest rates typically range between 16 and 22 percent, making home financing unaffordable for many prospective buyers. Access to mortgages has also been constrained by widespread informal employment, limited documented incomes and persistent land-titling challenges.
Officials from both organizations expressed confidence that the partnership will contribute to narrowing the housing gap by making mortgage financing more accessible and supporting the development of sustainable residential projects.
The collaboration is expected to stimulate investment in Uganda’s real estate sector while encouraging more Ugandans to participate in the formal housing finance market.
