KAMPALA — TLG Capital, a private credit investment firm focused on sub-Saharan Africa, has extended a $5 million financing facility to SHONA Capital Uganda to expand access to credit for underserved small and medium-sized enterprises.
The partnership will combine TLG Capital’s growth financing with SHONA Capital’s technology-driven lending platform to provide Ugandan businesses with loans ranging from $5,000 to $100,000.
The financing is expected to benefit formal SMEs operating in sectors including food and agriculture, healthcare, retail and manufacturing.
SHONA Capital was established in 2022 to address Uganda’s estimated $8.8 billion SME financing gap by providing flexible and affordable credit to businesses that often struggle to obtain funding from traditional financial institutions.
The Kampala-based lender has so far disbursed approximately $6.5 million to more than 150 SMEs, helping to create 402 direct jobs.
According to the company, 51 percent of its borrowers are women-owned or women-led businesses, while 67 percent accessed institutional credit for the first time through SHONA Capital.
The new facility is expected to support SHONA Capital’s plans to quadruple its loan portfolio and expand its geographical presence across Uganda.
SHONA Capital uses a proprietary underwriting system to automate customer onboarding, data processing, credit assessment and management support.
The company says the technology enables it to approve and disburse financing within five to 10 days, compared to the several weeks often required by traditional lenders.
Isha Doshi, Co-Founder and Partner at TLG Capital, described SHONA Capital as a strong partner for Ugandan businesses, noting that its experience advising SMEs had enabled it to develop a platform capable of serving them quickly.
“SHONA Capital has been an exceptional ally to Ugandan SMEs—first through years of advisory work, and now through direct lending in earnest,” Doshi said.
Ivan Mandela, Chief Executive Officer and Co-Founder of SHONA Capital Uganda, said timely and affordable financing was critical to the survival and growth of small businesses.
“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,” Mandela said.
He added that TLG Capital’s support would help SHONA Capital scale its operations, expand its impact and assist more businesses to formalise and integrate into Uganda’s wider economy.
The investment was made through TLG’s Africa Growth Impact Fund II, which focuses on supporting SMEs across sub-Saharan Africa.
The transaction follows a similar financing facility extended by TLG Capital to SHONA Capital Zambia earlier in 2026.
Beyond financing, TLG Capital will provide operational support to SHONA Capital Uganda in areas including governance, environmental, social and governance monitoring, quarterly business reviews and institutional capacity development.
TLG Capital says it has made more than 50 investments and completed over 30 exits across more than 20 African countries since its establishment in 2012.
Its Africa Growth Impact Fund II is backed by international development finance institutions including the International Finance Corporation, Norfund, Swedfund and Bpifrance.
