SHONA Capital partners with Cornerstone Asset Managers to Invest Shs1.84 billion in Ugandan SMEs
SHONA Capital and Cornerstone Asset Managers plan to continue exploring further opportunities to collaborate and mobilize local capital for Ugandan SMEs, building on the momentum created by this initial investment.

SHONA Capital, a Ugandan investment firm focused on supporting high-growth Small and Medium Enterprises (SMEs) in Uganda with the capital they need to flourish, has announced a landmark partnership with Cornerstone Asset Managers, a dynamic investment management firm in Uganda’s growing financial sector.
Through this alliance, SHONA Capital has secured $500,000 (UGX1.84 billion) from high-net-worth individuals through Cornerstone’s Private Wealth Management division, which is designated for targeted investments in high-potential Ugandan SMEs.
The investment is channeled through Cornerstone’s private wealth arm and guaranteed by Kuo Sharper Initiative, highlighting the collaborative effort to support local Ugandan businesses. By directing capital from high-net-worth individuals and institutions into SMEs, the partnership seeks to mitigate risks associated with hard currency-denominated funding and establish a sustainable growth model.
SHONA Capital offers flexible debt financing to Small and Medium Enterprises (SMEs) to optimize growth and support local economies through job creation. With a focus on agriculture and healthcare, this financing is complemented by practical business management support from a pool of industry and domain experts.
On the other hand, Cornerstone Asset Managers offers a broad array of investment solutions, comprising wealth management, income unit trusts, cash management, and investment advisory services, catering to both individual and institutional clients.
Despite SMEs contributing approximately 80% to Uganda’s GDP and employing the majority of the workforce, access to funding remains a significant challenge. A 2021 report by the World Bank estimated that the finance gap for SMEs in Uganda was roughly US$4.7 billion (approximately UGX17.219 trillion), indicating a considerable unmet need. Although lending to SMEs by commercial banks has risen, many SMEs still face difficulties in obtaining formal financing.
“By mobilizing local capital, SHONA Capital and Cornerstone Asset Managers are providing more reliable and sustainable funding sources for local entrepreneurs to scale, and create jobs, thereby strengthening the national economy. Investing in our own SMEs is the best way to ensure long-term, sustainable prosperity.
It is also a call to action for other local institutions – pension funds, fund managers, and high-net-worth individuals – to recognize the immense potential within our own borders. This demonstrates commitment and support for the “Buy Uganda Build Uganda” government policy,” Ivan Mandela, CEO of SHONA Capital.
“Cornerstone is dedicated to fostering the growth of the Ugandan economy, and we recognise the vital role that SMEs play in the economy of Uganda,” stated Simon Mwebaze, Managing Director of Cornerstone Asset Managers.
“By partnering with SHONA Capital, who have a proven track record and a profound understanding of the local market, this aligns with our role in the government’s tenfold growth strategy, as we are able to effectively allocate capital where it can make the most significant impact. We are confident that this investment will yield both financial returns and positive social outcomes.”
While Uganda’s private equity and venture capital sectors are growing, they still lag behind their regional counterparts. Historically, many SMEs have relied on foreign capital, exposing them to currency fluctuations and external shocks. Strengthening local investment channels, as demonstrated by SHONA Capital and Cornerstone Asset Managers, offers a more stable, long-term solution to Uganda’s SME financing challenges.
SHONA Capital and Cornerstone Asset Managers plan to continue exploring further opportunities to collaborate and mobilize local capital for Ugandan SMEs, building on the momentum created by this initial investment.