Kampala, Uganda | Challenger Uganda Limited credits its steady growth and operational expansion over the past two decades to flexible financing solutions from I&M Bank, which have enabled the construction firm to manage cash flow effectively and secure major contracts.
Founded in 2002 with an initial capital of Shs200,000 borrowed from a friend, Challenger has grown into a key player in Uganda’s construction industry. Its client portfolio includes renowned names such as Total Energies, Rubis Energy, Vivo Energy, UNHCR, MTN, and Majid Al Futtaim Hypermarkets.
Managing Director Peter Nduhira Arinaitwe emphasized the importance of I&M Bank’s tailored financial products, which cater to the unpredictable nature of construction projects.
“Construction requires constant access to funds. I&M Bank understood this and provided over Shs700 million without demanding immediate security, a rare move among banks. Their support has been crucial to our survival and growth,” Nduhira said during the Tukikube ne I&M Bank podcast.
He highlighted the value of timely financing, especially in meeting supplier payments, project deadlines, and capitalizing on business opportunities.
“Every new contract triggers expenses for materials, labor, and subcontractors. I&M Bank’s contract financing and prompt processing of LPO facilities have ensured we never miss payment schedules,” he added.
Nduhira also stressed financial discipline for entrepreneurs, advising against mixing personal and business funds to maintain operational stability.
“Business money is strictly for business operations. Mismanagement can jeopardize even the best financial support,” he warned.
For startups in construction, Nduhira recommends patience, sound financial planning, and fostering long-term relationships with both clients and financial institutions.