Castle Placement LLC, a premier private capital investment bank, has been mandated to raise US$5 billion (about Shs18.2 trillion) for 1Stock Limited, an investment management company registered in Uganda.
The funding will be used to support large-scale infrastructure developments across Uganda, including transportation, energy, and urban expansion initiatives.
“We aim to play a pivotal role in economic growth by backing companies, projects, and sectors with the highest forward and backwards linkages, and highest probability of success,” Dr. Nixon Kitimoi, the Chief Investment Officer at Castle Placement, said.
“These sectors, in turn, contribute to economic growth, physical capital accumulation, and economic efficiency. This announcement marks a pivotal step towards achieving Africa’s transformation and strengthening our position in Africa,” he added.
Objectives of the Funding
Dr. Kitimoi revealed that the investment will support projects that, among others, increase public investment in industrial development, ensure a steady supply of quality raw materials for value addition and enhance skilled human resources to boost productivity
Key Highlights of Project
According to Dr. Kitimoi, the funding will also focus on:
Technology and Innovation
The project will attain this objective through accelerating research innovations and the adoption of appropriate technologies to ensure industries remain competitive globally.
Sustainability Focus
This will be achieved through emphasising resource-efficient and environmentally sustainable industrialisation, contributing to long-term economic growth.
Alignment with NIP Objectives
Nurturing industrial projects in areas critical to regional and global competitiveness, prioritising agro-processing and other industries reliant on local resources for value addition.
Impact on Uganda’s Economy
The initiative is expected to have a significant impact on Uganda’s economy, including:
Accelerating Economic Growth
By investing in transformative projects that will modernise the country’s infrastructure and drive long-term sustainability.
Creating Jobs
This will be achieved through supporting industrial projects that will create new job opportunities and enhance skilled human resources.
Improving Infrastructure
This will be addressed by addressing infrastructure gaps and capacity constraints, which will in turn contribute to Uganda’s development and prosperity.
Business Development Services
1Stock Limited will also provide business development services to its portfolio companies, including financial management, project management, product development, and vendor management. This will help enhance the general performance of their businesses and their ability to compete at a regional level.
The mandate of Castle Placement LLC to raise US$5 billion for 1Stock Limited’s infrastructure-focused private credit fund is a significant development that will contribute to Uganda’s economic growth and development.
The funding will support transformative projects that will modernise the country’s infrastructure, drive long-term sustainability, and create new job opportunities.