For many Ugandan entrepreneurs, the challenge is no longer finding capital, it is proving that their businesses are ready for it. As financial institutions place greater emphasis on transparency and business performance, the quality of a company’s records is increasingly shaping its ability to secure financing, attract investment and pursue growth opportunities.
At the Annual Uganda Social Entrepreneurship and SMEs Conference and Expo in Kampala, financial sector leaders argued that many businesses struggle to access financing not because capital is unavailable, but because they are unable to present a clear and credible picture of their financial position.
Speaking during a panel discussion, dfcu Foundation Executive Director Mabel Ndawula said entrepreneurs seeking financing should first evaluate their businesses through the eyes of a lender, asking whether their records, cash flows and governance structures provide sufficient confidence to support a lending decision.
According to Ndawula, lenders are ultimately looking for evidence that a business generates sufficient and consistent cash flows to meet its obligations.
She urged entrepreneurs to look beyond the pursuit of capital and focus on the fundamentals that make a business bankable, including sound governance, regulatory compliance, financial literacy and the separation of personal and business finances.
“Businesses need to understand their numbers and be able to demonstrate them. Without reliable records, it becomes difficult to assess performance, plan for growth or give a lender confidence in the business’s ability to manage debt,” she said.
The discussion comes at a time when policymakers and financial institutions are paying increasing attention to the sustainability of Uganda’s SME sector.
According to a 2026 policy brief by the Ministry of Finance, Planning and Economic Development, Uganda’s informal economy accounts for approximately 55 per cent of economic activity, while informal employment represents about 92 per cent of total employment. Data from Uganda’s Fourth National Development Plan indicates that the country hosts approximately 1.1 million MSMEs employing more than 2.5 million people and accounting for roughly 90 per cent of non-farm employment.
Despite their importance to employment and economic growth, more than 60 per cent of these businesses close within their first five years.
The panel, which also featured aBi Finance Chief Executive Officer Mona Muguma Ssebuliba, Ensibuuko Chief Executive Officer Gerald Otim and Prof. Dominica Dipio of the Missionary Sisters of Mary Mother of the Church, explored practical measures businesses can take to strengthen operations and improve their readiness for financing.
Otim cautioned against the perception that digitalisation requires significant investment in sophisticated software systems. Instead, he encouraged entrepreneurs to begin with simple tools that capture and organise business transactions.
He pointed to services such as mobile money platforms, digital merchant payment solutions and standard banking channels as practical starting points for building reliable records of business activity.
“Businesses do not need complex systems to begin their digital journey. What matters is creating records that provide a clear picture of performance and support better decision-making,” he said.
As lenders increasingly rely on data and documented performance when making credit decisions, the ability to maintain clear financial records is becoming as important as the capital businesses seek to access.
In her closing remarks, Ndawula noted that the high rate of business failure highlights the need for entrepreneurs to adopt stronger management practices and greater financial discipline. While financing remains important, she said, many businesses first need the systems, skills and records that enable them to use capital effectively, manage risk and grow sustainably.
Through its enterprise development programmes, business training initiatives and efforts to improve financial access, the dfcu Foundation helps entrepreneurs strengthen governance, financial management and business readiness. Ndawula said better record-keeping is one of the most practical steps SMEs can take to improve decision-making, build credibility with lenders and investors, and position themselves for long-term growth.
dfcu was established in 1964 as a development finance institution. Over the years dfcu has been associated with many success stories in Uganda’s economy in various sectors including agribusiness, communication, education, health, manufacturing, tourism, real estate, mining, construction, transport, trade and commerce, among others.
Key Milestones
1964: dfcu Limited established by the Government of Uganda and the CDC
1999: Bought Uganda Leasing Company, renamed it dfcu Leasing.
2000: Bought Global Trust Bank, renamed it dfcu Bank, and started commercial banking.
2004: dfcu Limited was listed on the Uganda Securities Exchange.
2008: Merged its two businesses (Development Finance and dfcu Bank) to create a “one-stop shop” under dfcu Bank.
2007: Launched dfcu Women In Business
2013: Realignment of shareholders bringing on board a strategic partner – Rabobank, with significant experience in agribusiness
2014: Consolidated business operations into our Head Office – dfcu Towers.
2014: dfcu Bank acquired some assets and took over some liabilities of Global Trust Bank (In Liquidation)
2015: Launched the Women In Business Advisory Centre
2016: Aligned shareholding with Rabobank, Norfund and FMO combining to form Arise which is committed to strengthening and developing effective, inclusive financial systems in Africa with a long-term perspective.
