Ugandan billionaire Charles Mbire, who owns a 4% stake in the MTN Uganda Subsidiary that  is now worth $65million! rarely speaks in public. However, during a recent Enterprise Uganda workshop organised by Charles Ocici, he shared insights on his Entrepreneurial journey. His journey holds important lessons for real estate investors and entrepreneurs seeking to navigate Uganda's evolving business environment.

According to an interview with Nigerian businessman Paul Dozie in Africa's Billionaires by Chris Bishop, South Africa's MTN Group was seeking to expand into Nigeria in 1998. They approached Dozie, offering him a 40 percent stake in the new Nigerian subsidiary, with MTN retaining the remaining 60 percent. Despite his business stature, Dozie was only able to raise enough capital for a 20 percent share.

Meanwhile, in the same year, Ugandan businessman Charles Mbire was engaged in discussions with MTN to entice the company into establishing operations in Uganda. At the time, Nigeria's population stood at over 111 million compared to Uganda's 21 million, and the South Africans were initially reluctant to establish a base in Uganda.

In a bid to prove both himself as a credible individual & Uganda's viability , Mbire says He  was asked to secure a referral from the Ugandan Ambassador to South Africa , a person he did not previously know. Mbire recounted how he managed to persuade the Ambassador to travel urgently from Pretoria to Johannesburg to attend a meeting at MTN's headquarters alongside him.

Following approval from MTN Group, Mbire faced the daunting task of raising the required capital. He said he was forced to sell nearly all his assets, including homes and farms. At just 38 years old, and despite coming from a relatively affluent background, this was a significant financial risk.

According to The EastAfrican newspaper, Mbire secured a 3.98 percent stake in the newly formed MTN Uganda subsidiary.

The gamble proved worthwhile. On its first day of operations, MTN Uganda connected over 7,000 customers, surpassing projections from MTN executives who had anticipated a maximum of 5,000 subscribers within the first two years.

Mbire's story serves as a powerful reminder, similar to what he quoted in his TALK, that "He Who dares, WINS!

2) A Word of Caution on Borrowing

Beyond his entrepreneurial success, Mbire also shared an early mistake that shaped his approach to business financing.

After returning from the United Kingdom, he opened a catering business in Entebbe, financing it with a US$150,000 loan from the locally owned Sembule Bank. When the bank later entered receivership, the newly appointed management immediately recalled the loan.

Mbire said he was surprised by the move, but the loan agreement he had signed permitted the bank to demand full repayment at any time.

"You are your own best lawyer," Mbire told participants. "Be careful. Read every agreement before signing it. For borrowed money, you must always read between the lines."

He advised investors to be cautious with debt and he seemed to recommend  exploring alternative financing options, such as Islamic finance, which typically offers more borrower-friendly terms.

Mbire's experiences underline the importance of strategic partnerships(Joint Ventures), cautious financial management, and perseverance. For investors, particularly those in real estate, the key takeaways are clear: seek out strong partners, read every financial agreement carefully, and be prepared to take calculated risks when necessary.

Kind Regards
Mushamba Dauda
Author: Mushamba Dauda
Company: Caruso Management Uganda
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