TLG Capital Invests US$5 Million in SHONA Capital Uganda to Expand SME Lending

Uganda's small and medium-sized enterprises (SMEs) continue to face one of the largest financing gaps in East Africa, limiting growth despite their significant contribution to employment and economic output. To help address this challenge, TLG Capital, a private credit investment firm focused on Sub-Saharan Africa, has committed a US$5 million debt facility to SHONA Capital Uganda, a Kampala-based technology-enabled SME lender.

The investment, made through TLG Capital's Africa Growth Impact Fund II (AGIF II), will enable SHONA Capital Uganda to expand its lending capacity, reach more underserved businesses, and strengthen financial inclusion across the country.

What Does TLG Capital's US$5 Million Investment Mean for Uganda's SMEs?

The financing facility is designed to accelerate SHONA Capital Uganda's next phase of growth while supporting businesses that have traditionally struggled to access affordable institutional financing.

SHONA Capital Uganda was established in 2022 to address Uganda's estimated US$8.8 billion SME financing gap, providing flexible lending solutions to formal businesses operating in sectors including:

• Food and agriculture
• Healthcare
• Retail
• Manufacturing

Unlike traditional financial institutions, SHONA Capital combines proprietary technology with alternative underwriting methods, enabling significantly faster loan approvals and disbursements.

The company currently plans to quadruple its loan portfolio over the coming years while expanding its geographic footprint across Uganda. The new facility is also expected to position the lender to attract additional institutional investors as it scales.

How Has SHONA Capital Uganda Performed Since Launch?

Since beginning direct lending operations, SHONA Capital Uganda has demonstrated measurable commercial and social impact.

Performance Metric	Result
Founded	2022
Uganda SME financing gap addressed	US$8.8 billion
Capital disbursed	US$6.5 million
SMEs financed	150+ businesses
Direct jobs supported	402
Women-owned or women-led borrowers	51%
First-time institutional borrowers	67%
Loan disbursement speed	5–10 days

Notably, 67% of borrowers accessed institutional credit for the first time, helping many businesses transition into the formal financial system.

Meanwhile, 51% of SHONA Capital Uganda's borrowers are women-owned or women-led enterprises, supporting broader financial inclusion objectives across Uganda.

How Does SHONA Capital's Technology Speed Up SME Lending?

Access to capital remains one of the biggest constraints facing African SMEs, with traditional lenders often requiring weeks to process applications.

SHONA Capital Uganda addresses this challenge through a proprietary digital lending platform that automates:

• Borrower onboarding
• Data verification
• Credit assessment
• Loan monitoring
• Portfolio management

As a result, eligible businesses can receive financing within 5–10 days, substantially faster than many conventional lending institutions.

The model aims to reduce administrative bottlenecks while improving access to working capital for businesses that banks and many microfinance institutions have historically underserved.

Why Is TLG Capital Investing in SHONA Capital Uganda?

The investment aligns with TLG Capital's strategy of supporting scalable financial institutions serving underserved businesses across Sub-Saharan Africa.

The transaction also follows TLG Capital's financing of SHONA Capital Zambia earlier in 2026, reinforcing the firm's regional strategy of expanding access to private credit for SMEs.

Beyond capital, TLG Capital will provide operational support through its value creation framework, including:

• ESG monitoring
• Corporate governance support
• Quarterly business reviews
• Operational improvement initiatives

The objective is to strengthen SHONA Capital Uganda's institutional capabilities while preparing the business for future growth and additional investment.

Although this transaction is focused on Uganda, it reflects a broader trend across African private credit markets, where institutional investors are increasingly backing fintech-enabled SME lenders to close persistent financing gaps. Similar ecosystem-building initiatives are emerging across regions, including innovation hubs such as Hub71 in the UAE and financial centres including ADGM, illustrating growing investor interest in technology-enabled financing models across emerging markets.

What Did the Companies Say About the Investment?

Isha Doshi, Co-Founder and Partner at TLG Capital, said the investment reflects confidence in SHONA Capital Uganda's long-standing expertise serving local businesses.

"SHONA Capital has been an exceptional ally to Ugandan SMEs—first through years of advisory work, and now through direct lending in earnest. They understand the businesses they serve and have built a platform capable of reaching them at pace."

Ivan Mandela, CEO and Co-founder of SHONA Capital Uganda, said timely access to affordable capital remains critical for SME growth.

"For most SMEs, the difference between growing and standing still comes down to whether they can access capital quickly and at a cost that makes sense. TLG's backing provides exactly the type of partnership that will facilitate our ambitious growth targets."

Who Advised the Transaction?

The transaction involved teams from both organisations.

SHONA Capital Uganda

• Ivan Mandela — CEO & Co-founder
• Jackson Ssetuba — Chief Finance Officer
• Sowedi Zirabamuzale — Senior Strategy and Risk Analyst

TLG Capital

• Aum Thacker
• Rohan Subramanian
• Ikponmwosa Amadasun

Legal advisers included SM&CO Advocates and Hannaford Turner.

Why Does This Investment Matter?

SMEs account for the majority of businesses across Sub-Saharan Africa, yet access to formal financing remains one of the region's largest structural challenges.

By combining US$5 million in institutional funding with technology-enabled lending, SHONA Capital Uganda aims to expand credit access for underserved businesses, accelerate formalisation, and support job creation across Uganda's productive sectors.

For TLG Capital, the investment strengthens its growing portfolio of impact-focused private credit investments designed to unlock long-term economic growth across Africa.

 

 

FAQs

1. What is the purpose of TLG Capital's US$5 million investment in SHONA Capital Uganda?
The investment will help SHONA Capital Uganda expand lending to underserved SMEs, grow its loan portfolio, and improve access to affordable institutional financing across Uganda.

2. What is Uganda's SME financing gap?
Uganda faces an estimated US$8.8 billion SME financing gap, meaning many small and medium-sized businesses struggle to obtain the capital needed for growth.

3. How does SHONA Capital Uganda differ from traditional lenders?
SHONA Capital Uganda uses proprietary technology to automate borrower onboarding, credit assessment, and loan management, allowing eligible businesses to receive funding within 5-10 days.

4. What is TLG Capital's Africa Growth Impact Fund II (AGIF II)?
AGIF II is TLG Capital's private credit investment fund focused on supporting high-impact businesses and financial institutions across Sub-Saharan Africa through long-term growth capital.

5. What impact has SHONA Capital Uganda achieved so far?
Since launching in 2022, SHONA Capital Uganda has disbursed US$6.5 million to more than 150 SMEs, supported 402 jobs, served 51% women-owned or women-led businesses, and enabled 67% of borrowers to access institutional credit for the first time.