UGANDA Trends and Developments Contributed by: Arnold Lule Sekiwano, Ritah Nakalema, Evelyn Maria Nakigudde and Collette Melvina Awano, Engoru, Mutebi Advocates
Introduction Uganda’s M&A environment is undergoing rapid trans - formation, driven by sweeping regulatory reforms, sector-specific developments and regional integra - tion. The enactment of the Competition Act and its Regulations, as well as of the Common Market for Eastern and Southern Africa (COMESA) Competi - tion and Consumer Protection Regulations 2025, has introduced a suspensory regime, mandatory notifica - tion thresholds and stricter definitions of control, and broadened merger definitions to include joint ventures and digital platforms. In energy, the 2023 Energy Policy has created new opportunities in ethanol, biomass and renewable pro - jects, even with the temporary suspension of solar and wind licensing. In financial services, new hold - ing company guidelines, enhanced payment systems oversight and heightened capital adequacy require - ments are driving consolidation and group-wide risk assessments. Capital markets reforms are embedding transparency and ESG considerations into listed com - pany operations. Tax reforms have incentivised private equity and venture capital funds, while offering exemptions for specific sectors. These measures underscore a trans - actional landscape that is increasingly compliance- driven, sustainability-oriented and regionally inte - grated. As Uganda positions itself within global trends of governance, energy transition and capital market reform, M&A activity is expected to remain robust, shaped by regulatory clarity, sectoral innovation and investor appetite for resilient, future-focused assets. Notable among recent transactions were investments in the agricultural sector by Acumen Fund Inc. through convertible notes and funding in the pharmaceutical space by Stitching Medical Credit Fund. In addition, the Government of Uganda subscribed for preference shares in New Vision Printing and Publishing Compa - ny Limited, resulting in a UGX25 billion increase in its share capital, the first of its kind in a listed company. Cross-border leveraged financing and insurance sector consolidation included Asahi Group Holdings’ acquisition of East African Breweries Plc, a transac - tion spanning two securities exchanges, and Sanlam
Allianz Africa (Proprietary) Limited taking security by way of share pledge over shares in Sanlam Allianz General Insurance (Uganda) Limited from NICO Hold - ings Plc. ABSA Bank acquired Standard Chartered Bank’s wealth and retail banking portfolio, while Marsh Uganda merged with Olea Uganda. CANAL+ and MultiChoice Group announced a mandatory takeover offer by CANAL+ for the shares of MultiChoice Group, including GOtv Uganda. There was also the spin-off of MTN Mobile Money, resulting in the separation of MTN’s mobile money business, an entity soon likely to list on the Uganda Securities Exchange (USE). Natural Resources The National Climate Change (Climate Change Mech - anisms) Regulations 2025 regulate the development, registration and trading of carbon credits. Companies with emissions-intensive operations or land-based projects (forestry, agriculture, energy) will need to consider compliance with carbon mechanism require - ments and the potential value of carbon credits as an asset class that can affect valuations or create new revenue streams. Second, as carbon trading becomes regulated, due diligence will need to assess whether target companies are ready to participate in carbon markets or face risks from non-compliance with measurement, verification, registration and reporting obligations under the new Regulations. The Ministry of Energy launched the National Biofuels Blending Programme in July 2025, which requires all petrol sold in Uganda to be blended with 5% locally produced ethanol from crops such as maize, cassava and sugarcane, in a bid to cut fuel imports, reduce emissions and create market for local agricultural pro - duce. Four facilities were licensed to carry out blend - ing of ethanol at Modern Energy Ltd in Busia, Bukona Agro Processors at the Malaba border point, Afro-Kai Ltd at the Mutukula border, and Lake Victoria Logistics in Entebbe, and will collectively handle over 110 mil - lion litres of petrol annually. For M&A, this can increase the value of compliant ethanol plants, agricultural sup - ply businesses and fuel distribution companies, while also introducing regulatory and capacity risks that buyers must assess during due diligence.
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