02 Oct Startup Financing in Kampala — From Overlooked to Contender

The Startup Paradox in Uganda

Uganda’s startup scene is energetic. Entrepreneurs are building solutions for logistics, food, fintech, and more. Investors applaud, hubs incubate, pitch competitions abound.

But walk into a bank with no revenue history and you’ll walk out empty-handed. Banks aren’t in the business of betting on people. They want collateral stacked on collateral, and a track record stretching back years. This is the paradox: startups drive innovation but can’t get funding from traditional lenders.

The Challenge: A Beverage Contract, No Capital

One Kampala entrepreneur had landed a rare opportunity: a supply contract with a local beverage company. The deal could transform their profile overnight. But fulfilling it required upfront cash: purchasing inputs, securing logistics, and covering staff costs. The startup had limited history, no classic collateral package, and banks wouldn’t engage.

The Impala Approach: Looking Beyond the Surface

At Impala, we took a different view. Instead of writing the founder off, we examined:

• Cash flow projections from the beverage contract.
• Supplier agreements already in place.
• The entrepreneur’s track record and capability.
• Existing cash flows and assets that could support the facility.

On that basis, we structured a short term business loan Uganda startups can actually access not on the bank’s rigid terms, but on real business logic.

The Result: From Ignored to Credible

With capital in hand, the entrepreneur executed the contract seamlessly. Payments cleared, suppliers were happy, and the beverage company recognized their ability to deliver. What banks saw as “no history,” Impala saw as “a chance to prove.” Today, that founder is no longer ignored. They’re competing with established suppliers.

Why This Matters

Ugandan startups aren’t short on ambition. They’re short on liquidity. And in an economy where big contracts often flow to incumbents, financing can be the equalizer. Banks will always wait for proof. Impala finances the proving ground.

The Punchline

Banks fund the past. Impala funds the future.