The 1st Kampala Private Equity/Venture Capital Conference 2015

By Uganda Investment Authority

“The Alternative Finance Vehicle for MSMEs”

Although many companies in Uganda are just starting and showing very high potential for growth and profitability, they lack the capital to get established. Between microfinance and mega deals in Uganda lies the “missing middle” – a lack of SME business finance holding back a swathe of high potential enterprises. Yet investing in the growth of SMEs benefits the whole value chains such as suppliers, processors, distributors and the storage facilities. There is no better way to grow the economy than offering affordable finance options to the SMEs.

This is where private equity (PE) and venture capital (VC) funding comes handy, these institutions provide medium to long term equity capital to companies with growth potential. Private equity firms are in search of high return on their capital and seek out firms with growth potential; invest in these firms and exit after achieving their required return. The PE, VC, Angel groups and crowd funding platforms offer SMEs a multitude of new financing options. These funders earn money by possessing equity in the particular company or companies they invest in.

Issues addressed

  1. Am I prepared to give up a part of the shareholding in the company?
  2. Does my company have a technological, creative or a competitive advantage?
  3. Do I have a trained/knowledgeable team to back me, to run the business with defined processes and targets?
  4. Is the sector in which my company operates a growth sector?

Highlights of the Conference

  1. Keynote speakers selected from available local firms to highlight the operation method of PE/ VC financing;
  2. Panelists to address the many sources of alternative financing suitable to the Ugandan SMEs;
  3. SMEs to present their profiles and business plans for selection by PE;
  4. Pitching, B2B networking between SMEs and financiers.

SMEs targeted

  1. Registered local company operating in Uganda having TIN.
  2. High potential for growth and prospects to engage in the global market (mainly through export of its products/services).
  3. Evidence of well-maintained financial records and audited books of accounts for at least 2 years
  4. Prospects and capacity to expand (creating employment and helping to spawn other businesses)
  5. Use appropriate technologies which ensure competitiveness among the companies
  6. Evidence of a need for working capital or significant use of technology for business growth
  7. Able to develop a viable business plan
  8. Engaged in priority sectors namely; agribusiness, tourism, mineral beneficiation, ICT, education, health care, real estate, fisheries, manufacturing, entertainment.

Read about  Kampala Private Equity/Venture Capital Conference