WHAT IS THE DEAL FLOW FACILITY?
The Deal Flow Facility (DFF) is a technical assistance and match making initiative set up to address the persistent gap in accessing growth capital for emerging businesses in Uganda. Established in 2021 in concert with the Capital Markets Authority and the European Union, the Deal Flow Facility is hosted and managed by FSD Uganda. The DFF aims to make over 220 Ugandan businesses ‘investment-ready’, with over 40 deals (debt / equity) closed in the next five years thus stimulating private sector growth and contributing to the country’s national development plan.
The facility is focused on already established businesses, building their investor readiness (where required) and connecting them to capital pools beyond bank financing, resulting in accelerated growth of Ugandan businesses and greater employment opportunities. The DFF is sector agnostic and focuses on companies with financing needs of USD 500K and above.
The Deal Flow Facility does not have its own capital to invest.
Participating in the Deal Flow Facility will help you find the ‘right-fit’ investor and shorten your journey towards converting a deal.
Funded by:
In partnership with:
Why Participate in the Deal Flow Facility?
The DFF is designed as a one-stop meeting point for prospective companies and potential
investors. Through the DFF, investors will access a viable pipeline of investment ready Ugandan
businesses.
Benefits to Companies:
- Helping You Find the Right Fit Investor: Finding the right investors that match your company values and ambitions, courting them, to actual conversion of a deal can be a long and arduous process. The DFF aims to shortern this journey. We match companies to multiple investors that have a focus in the sector, geography and ticket size of investment being sought thus increasing your chances of an investment.
- Building Your Investment Readiness: The DFF team will conduct a light due diligence based on the information you provide, in order to ascertain your readiness to receive further investments (especially if this is your first time receiving non-bank financing). In order to increase your chances of investment, the DFF will provide technical assistance to cohorts of companies covering:
- Business diagnostics
- Mentoring, coaching and capacity building
- Enhanced access to transaction advisers
- Networking
The Facility will aim to tailor-make its support based on each company’s needs and readiness for investment. All information will be treated as confidential and will only be shared with explicit consent from the companies.
- Building Your Transaction Support Team: A successful transaction requires the support of the right lawyer, accountants, and more. Finding the right skills at the right ‘price’ often deters many companies. The DFF is currently engaging various professional associations – especially lawyers and accountants – to provide their offerings to growing companies at prices that are affordable, without compromising on quality of service. The DFF provides a lucrative opportunity to these intermediaries as it presents a ready pool of companies looking for their services, reducing their discovery costs while ensuring consistent value to participating companies.
- Giving Your Issue A Strong Platorm and Voice: Businesses are the backbone of any economy. One of the explicit aims of the DFF is to better understand barriers that companies such as yours face or continue to face in raising affordable capital. The Capital Markets Authority, as a key partner is eager to increase non-bank growth capital into Ugandan businesses, and you will have direct input in shaping this enabling environment.
Benefits to Investors:
- Reducing your Transaction Cost:
The Deal Flow Facility aims to build a viable investment worthy pipeline over the next couple of years. As an investor, the DFF will present a one stop opportunity to view an investible pipeline. The DFF is sector agnostic and focuses on companies with financing needs of USD 500K and above. - Building a long-term investment worthy enabling environment:
One of the aims of the DFF Is to address systemic barriers that limit private capital (debt / equity) from flowing into the country and Ugandan businesses. The DFF aims to build an ecosystem of investors, companies and transaction advisors – taking in their experiences and feedback and working with policy makers to make the requisite changes necessary to achieve the country’s national development goals.
Interested in learning more? Write to us at: dff@fsduganda.or.ug.
BENEFITS TO INTERMEDIARIES:
Become listed as part of DFF’s Panel of Advisors
The DFF will work together with various intermediaries that can provide enterprises with Business Development Support (BDS) and technical Assistance (TA) in thematic and specialized areas that will be defined by the DFF team, after a thorough business diagnosis. The DFF will prequalify these intermediaries and list them as part of DFF’s panel of advisors, who would deliver BSD and TA support to the companies.
To be enlisted as part of the DFF panel of advisors, an intermediary should meet the following criteria:
- Legally registered in Uganda or have a branch office in the country
- Demonstrate extensive experience in providing business and transaction support to growth stage enterprises in Uganda
- Registered with a professional body in their field of expertise. For instance, accountants need to be registered with ICPAU and lawyers need to be registered with ULS etc.
- Submit KYC documents including but not limited to certificate of incorporation, trading license, tax compliance certificates and CV of the team that will deliver the assignment
Capacity building workshops and seminars for Intermediaries
One of the key objectives of the DFF is to strengthen the investment ecosystem in Uganda and this includes providing capacity building to intermediaries in key areas of investment readiness and alternative financing. Intermediaries that will be listed as part of the panel of advisors will have the opportunity to participate in these capacity building workshops and seminars.
To apply please reach out to the DFF team at dff@fsduganda.or.ugÂ
THE DFF PARTICIPATION CRITERIA
The Deal Flow Facility is actively looking for companies that need growth capital and that meet the following criteria:
- Registered with the Uganda Registration Services Bureau (URSB) and operating in Uganda
- Have audited financial accounts for at least two years
- Raising at least USD 500,000 (UGX 1.8 billion) in equity, or debt, or both
Businesses from all sectors are welcome to apply. We strongly encourage women and youth-led businesses that meet the criteria above to apply.