By Kisara Herbert Investing in Small and Medium Enterprises in Uganda.

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Transcript of By Kisara Herbert Investing in Small and Medium Enterprises in Uganda.

By Kisara Herbert

Investing in Small and Medium Enterprises in Uganda

Investing in Ugandan SMEs

• Poverty – less than $2/day

• Problem of Aid – not building the economy

• Manufacturing and skilled service jobs less than 5% of economy

Mango Fund’s Model

Investing in Ugandan SMEs

Investing in Ugandan SMEs

Greater than $500,000

$500,000 - $50,000

$5,000 - $50

$50,000 - $5,000

The Missing MiddleLarge Private Equity

Banks and non-profit funds

Micro Finance Institutions

Missing Middle

Funding Available

Some Funding Available

Funding Available

Goals of Mango Fund Investments

Investing in Ugandan SMEs

• Identify and support high-potential businesses

• Equip entrepreneurs with skills, resources, and capital that enable them to grow their businesses

• Increase the creation of skilled jobs in communities with fewer opportunities

Investing in Ugandan SMEs

How do we do that

• Come alongside entrepreneurs• Help entrepreneurs grow their businesses• Equip entrepreneurs with skills, resources,

and capital

• Create skilled jobs• Increase in-country wealth

Investing in Ugandan SMEs

Types of Funding

Asset Financing (up to 85%) Working Capital Financing Equity Financing

Investing in Ugandan SMEs

Sectors we have invested in:

1. Manufacturing2. Agro-processing (eg oil seed)3. Technical farming4. Consumer packaged goods5. Medical services

Investing in Ugandan SMEs

Characteristics of Mango Fund Entrepreneurs

• Growth-minded

• Proven history of success

• Solid management skills and plan

• Strong business opportunity

• Focus on using technology and local skills-base

Investing in Ugandan SMEs

What we offer:

Financing between: UGX 10M- 130MPayback: Min 3months to Max 3 yearsFlexibility on security/collateralInterest: 2% - 4% per monthTechnical Assistance Quick feedback on the applicationTimely disbursement (3-8 weeks)

Investing in Ugandan SMEs

Why Entrepreneurs Partner with Mango

• Flexibility (Security, Loan structure etc)

• Technical assistance

• Networking

• Competitive rates

• Equity

Investment Process:

Investment inquiries

Due diligence

Investment proposal

Investment committee

Contract and funds distribution

Technical Assistance

Investing in Ugandan SMEs

Investing in Ugandan SMEs

Thank you for your time.

Investing in Ugandan SMEs