UGANDA Law and Practice Contributed by: Arnold Lule Sekiwano, Ritah Nakalema, Evelyn Maria Nakigudde and Collette Melvina Awano, Engoru, Mutebi Advocates
Engoru, Mutebi Advocates Engoru, Mutebi Advocates 1st Floor, Ericson House Plot 24B Akii Bua Road P.O. Box 22510 KAMPALA Tel: +256393216520 Email: engorumutebi@engorumutebi.co.ug Web: www.engorumutebi.co.ug
1. Trends 1.1 M&A Market
Change (Climate Change Mechanisms) Regulations 2025 formalised Uganda’s carbon market framework, positioning carbon credits as a regulated asset class and introducing compliance obligations that now fea - ture in transactions involving forestry, agriculture and energy projects. The launch of the National Biofuels Blending Pro - gramme in July 2025, mandating 5% ethanol blend - ing and licensing four blending facilities at key bor - der points, has strengthened the investment case for ethanol producers, agricultural supply chains and fuel distribution businesses. At the same time, the Elec - tricity Regulatory Authority temporarily suspended new solar and wind licences from 24 October 2025 pending a grid stability study, shifting investor focus towards hybrid and base-load technologies such as geothermal, hydro and nuclear. Biomass and geother - mal development continues under the revised REFIT framework, with geothermal potential estimated at 1,500 MW, while fiscal incentives for clean cooking solutions are supporting growth in sustainable energy investments. The Bank of Uganda’s October 2025 guidelines on domestic financial holding company structures intro - duced clearer requirements on capital, governance and group-wide supervision, requiring acquirers to assess regulatory capital, shared services and cross- border oversight in group transactions. The August 2025 National Payment Systems Oversight Policy Framework further strengthened risk-based super - vision of banks, payment service providers and fin - techs, increasing compliance considerations in finan - cial sector deals.
Uganda’s M&A landscape has been shaped by an interplay of legal, economic, political and social fac - tors. As the country moves beyond the 2026 general elections, political dynamics are expected to exert a significant influence on transactional activity, creat - ing ripple effects across various sectors. The above notwithstanding, in the past 12 months, Uganda has experienced significant growth in M&A activity across different sectors, including technology (particularly fin - tech), financial services, insurance, healthcare, manu - facturing, and oil and gas. By way of example, there has been an uptick of invest - ment in the communications space; for instance, CANAL+ and MultiChoice Group announced a Man - datory Takeover Offer by CANAL+ for the shares of MultiChoice Group, including GOtv Uganda, pending regulatory approval from the Uganda Communica - tions Commission. With regard to financial services, ABSA Bank completed the acquisition of Standard Chartered Bank’s wealth and retail banking portfolio. There have also been noteworthy tax reforms, includ - ing the removal of stamp duty on most agreements, enhanced incentives for private equity and venture capital funds regulated by the Capital Markets Author - ity (CMA), stricter tax identification and gaming pay - ment gateway requirements. 1.2 Key Trends In 2025, regulatory and policy developments contin - ued to shape transaction structuring, valuation and due diligence across sectors. The National Climate
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