Commissioner Joseph Enyimu (C) is gifted by ICPA officials after his presentation at the Entebbe Symposium
HABARI DAILY I Kampala, Uganda I There is a growing impact of the Deal Flow Facility (DFF), following a revealation that it has already mobilised $11 million in investment for Ugandan businesses.
The DFF, which is funded by the European Union (EU) and CMA, and managed by Financial Sector Deepening (FSD) Uganda is a technical assistance and matchmaking initiative that helps enterprises to access long-term financing beyond conventional bank loans.
Josephine Okui Ossiya, the CMA Chief Executive Officer said that the facility has helped several local companies become investment-ready by improving their governance, financial management and overall attractiveness to investors.
“Businesses first apply to join the programme and, once admitted, undergo a rigorous assessment before they are introduced to potential investors.” she noted during the 14th Certified Public Accountants (CPA) Economic Forum.
Held at the Imperial Botanical Hotel in Entebbe, between July 15-17, the workshop attracted up to 300 accountants from all over Uganda.
Ossiya noted that once a company is admitted, they look at its books of accounts, governance, among other areas and prepare them to become attractive to an investor.
“Once they are sure that the firm is ready, they then match it with an investor. Participating companies are profiled on an investment platform where private equity and debt investors can express interest. So far, $11m has been attracted over the last four or five years.”
She further revealed that different investors have expressed interest, and have obtained technical advice. “Once they are matched, they can either attract equity or debt.”
The DFF specifically targets growth-stage Ugandan businesses seeking investments of $500,000 and above. Eligible firms must be registered in Uganda, possess at least two years of audited financial statements and generate annual revenues of at least $250,000.
Ossiya said one of the programme’s greatest strengths is that it primarily benefits indigenous enterprises.
“Most of the companies they have supported are local companies, and mostly in the agricultural and agro-processing space. That’s where a lot of the money has gone,” she noted.
She said the facility aligns directly with Uganda’s industrialisation agenda by bringing much-needed private capital into productive sectors.
“Because it attracts private equity into the country. One of the sectors that we are focusing on is agriculture and agro-industrialisation, and that speaks directly to that objective.”
She added: “Most of this money, when it comes, boosts those companies, improves their production and enables them to add value. That feeds directly into the country’s growth programme.”
Beyond the DFF, Ossiya said the CMA is broadening Uganda’s capital markets by developing new investment products that can tap into previously underutilised pools of capital, including funds held by Ugandans in the diaspora.
“We have a lot of money sitting out in the diaspora,” she observed, adding that expanding investment products would help channel more of those resources into national development.
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