FSD Uganda and EAVCA sign MoU to Bridge Gap in Private Capital Access in Uganda
Kampala Tuesday, 04 April 2022: Financial Sector Deepening (FSD) Uganda today signed a Memorandum of Understanding (MoU) with the East African Private Equity and Venture Capital Association (EAVCA), Uganda Chapter, under the Deal Flow Facility (DFF) to bridge the existing gap between the supply and demand side of private capital in Uganda.
The DFF, which is funded by the European Union, in collaboration with the Capital Markets Authority and incubated at FSD Uganda, is helping Ugandan companies to become investment ready by actively supporting them with technical assistance and matching them to long term investment capital that will allow businesses to focus on growth.
Under the MoU, the DFF applicants and EAVCA members will have opportunities to access a pool of investors, gain access to quality investment opportunities and have a networking platform for growth-stage companies seeking long-term investment capital to grow their companies.
During the signing ceremony, the DFF Director at FSD Uganda, Norah Koigi Ngare, said: The DFF and EAVCA share a common vision to promote and create a favourable business environment to position Uganda as a private capital destination of choice. We are confident that through collaboration with EAVCA, we will share learnings, support in increasing awareness in the market and create an opportunity for EAVCA’s members to access deal pipeline, and for Ugandan enterprises to access non-bank funding.
The EAVCA Chairperson , Steering Committee, Jarl Heijstee said, “This MoU will set the pace for us to work together to improve the business environment for investment promotion. We will jointly identify and unlock any impending policies that incentivise the deployment of private capital and co-design a networking event for the DFF’s investor pool and EAVCA members.”
FSD Uganda is an independent, non-profit organization that supports innovation, conducts research, and helps to promote and improve policy, laws and regulations that shape the financial sector. Apart from increasing capital inflows, the accelerated growth of medium to large companies through the DFF will result in direct and indirect job creation, with a multiplier effect on household income and financial inclusion.
EAVCA was founded in 2013 to represent East Africa’s private equity and venture capital industry and provide a voice for industry players to raise awareness and engage on regional policy matters. The industry body is the primary industry association for East Africa’s private equity and venture capital ecosystem. Its operational jurisdiction within East Africa includes Kenya, Uganda, Tanzania, Rwanda and Ethiopia. With a membership comprising primarily of fund managers, limited partners, and private capital industry service providers, the core business of EAVCA is the provision of services in pursuance of the interests of actors within its membership base. EAVCA launched their Ugandan chapter in 2021 to promote Uganda as a private sector capital destination while ensuring a favourable environment for trade and investment in the local Ugandan private business sector.
The Ag. Executive Director, Joseph Lutwama, acknowledged the support of the European Union and the Capital Markets for their role in creating the DFF Flow facility which, he said, its not just about matching companies, but also develop the whole capital and investment ecosystem.
Mr Richard Mugera, the Vice Chairperson, Steering Committee said the DFF and EAVCA have a shared vision of addressing the gaps in accessing growth capital for emerging Ugandan businesses. The MoU is the first step towards achieving this goal.
For more Information contact:
FSD Uganda – DFF Portfolio Relationship Manager
+256 782 379611
EAVCA Uganda Chapter – Country Co-ordinator