Uganda: 200 SMEs to get financing from venture capital firms
The venture capital firms are expected to provide medium to long-term capital to businesses.The Uganda Investment Authority (UIA) has announced a two-day event aimed at pairing 200 small and medium-sized enterprises (SMEs) with 70 private equity (PEs) and venture capital (VCs) firms.
"Between microfinance and mega deals in Uganda lies the missing middle: a lack of SME business finance that is holding back a swathe of high potential enterprises,” said Frank Ssebowa, Executive Director at the UIA, quoted by Vanguard. "This is where private equity and venture capital comes in handy."
The private equity and venture capital firms are expected to provide medium to long-term capital to businesses with growth potential.
The SMEs will be selected with the help of business groups to ensure that the final selection is inclusive and spans the country’s economic value chain. They will be required to prepare business projects.
Small and medium-sized enterprises represent 90 per cent of the private sector in Uganda and account for 75 per cent of the country’s total economic output, according to estimates from the finance ministry and UIA.