The Financial Sector Deepening Uganda (FSD) on Tuesday launched a call of expression of interest for eligible medium and large companies in Uganda that want to become “investment ready”.
In June 2021, FSDU launched the Deal Flow Facility (DFF) to increase investment in growth-stage companies in the country.
Funded by the European Union (EU) and in collaboration with the Capital Markets Authority (CMA), the facility aims at helping Ugandan companies become ‘’investment ready’’.This will be done by actively match-making them to long-term investment capital, to allow businesses to focus on growth rather than short-term funding needs.
Yesterday, FSDU invited eligible companies to submit their application at an event that was held in Kampala.The purpose of the event was to meet with potential organisations, provide guidance on how potential participants can submit their application and give them a platform to raise questions about the process to increase their chances of meeting the eligibility criteria.
In addition to matchmaking, DFF will provide business development services to at least 220 companies over a five-year period, with the first cohort that started yesterday.
The facility is actively targeting relatively mature companies that are seeking investments of not less than $500,000 (about UGX1.83b).
The facility also aims to be a one-stop center where companies can access all their transaction advisory needs – from tax, legal, banking and more.
The pool of select enterprises will have access to business development support to increase their competitiveness and place them on an accelerated growth path.
The five-year programme aims to support at least 220 growth-stage companies with business development support and match at least 40 companies to investors.
Eligibility Criteria
For companies: The DFF is actively looking for companies that need growth capital of not less than US$ 500,000 (UGX 1.8 billion) in equity or debt or both, and which meet the following criteria:
-Located and operating in Uganda
-Registered with the Uganda Registration Services Bureau (URSB) and operating in Uganda
-Registered as a for-profit organizsation
Been in operation for a minimum of two years
-Have audited financial accounts for at least two years
-Demonstrate growth potential
-Contribution to the National Development Plan
Capital mobilised through investments and skills transferred along the investment cycle will contribute to two key objectives in the country’s National Development Plan III: Strengthening the private sector to drive growth and create jobs; and enhancing value addition in key growth opportunities.
DFF is expected to increase the development of Uganda’s capital markets, complementing ongoing efforts by the CMA including investor education. Learnings from the DFF will provide the regulator and policy makers with objective evidence-based perspectives to shape the current and future investment climate.
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