By: Fortunate Kirabo, Legal Assistant & Faith Okiria, Associate

On 20th August 2025, we participated in the Uganda Top 100 Mid-Sized Companies Training at the KPMG Training Centre, held under the theme “Driving Inclusive Business Growth: Empowering SMEs across All Sectors for Economic Transformation.” The training focused on one of the most critical issues for Uganda’s private sector: transitioning from private capital to public capital for business financing. The training discussions highlighted the central role of capital markets in unlocking growth opportunities for SMEs in Uganda.

KEY INSIGHTS INCLUDED:

Investor Readiness: A Non-Negotiable

Investors today are discerning. They prioritise:

▪ Governance structures that demonstrate accountability and professionalism.

▪ Transparent financial reporting that builds confidence in both past performance and prospects.

▪ Credible leadership teams with the capacity to deploy capital effectively.

Beyond demonstrating how new capital will be utilised, SMEs must also understand investor decision-making dynamics and align with the right type of investor for their growth stage. This alignment is key to navigating the due diligence process when investment interest arises.

Capital Raising Options: Mapping the Journey:

SMEs have a wide spectrum of financing choices: bank debt, private equity, venture capital, and ultimately, the securities exchange. Each pathway has distinct requirements, risk profiles, and investor expectations. Successful SMEs are those that prepare for these stages sequentially, meeting compliance and governance thresholds well before they approach the market.

Structuring for Success

• No amount of business ambition can
• compensate for weak legal or regulatory
• foundations. To attract capital, SMEs must

prioritise:

▪ Strong corporate structures aligned with the Companies Act and regulatory requirements.

▪ Audited financial statements that withstand scrutiny.

▪ Sound contractual arrangements with suppliers, customers, and financiers.

In short, businesses must streamline their legal identity, operations, and governance with the regulatory framework to secure

investor trust.

The Role of the Uganda Securities Exchange

The Uganda Securities Exchange (USE) has been instrumental in opening pathways for SMEs to access long-term, sustainable financing. Through innovative products, tailored listing segments, and ongoing market education, the USE is laying the groundwork for a stronger pipeline of investment-ready enterprises.

The Takeaway for SMEs

For SMEs, the message is clear: growth and sustainability hinge on readiness, compliance, and strategic positioning. Investor readiness, particularly in governance, transparency, and legal structuring, is not optional; it is the foundation upon which successful capital raising is built.

As a firm, we remain committed to supporting enterprises, market actors, and regulators in strengthening Uganda’s capital markets ecosystem. The goal is to drive a thriving SME sector that powers inclusive economic transformation, anchored by access to public capital.