By The Independent

Copyright independent

Kampala, Uganda | THE INDEPENDENT | Challenger Uganda Limited has attributed its steady growth in the construction industry to flexible financial support from I&M Bank, which the company says has enabled it to meet cash flow needs and expand operations over the past two decades.

Founded in 2002 with capital worth Shs200,000 borrowed from a friend, Challenger has grown into a major player in Uganda’s construction sector with clients such as Total Energies, Rubis Energy, Vivo Energy, UNHCR, MTN and Majid Al Futtaim Hypermarkets.

Managing Director Nduhira Peter Arinaitwe said the bank’s tailored financial solutions were crucial to the company’s survival and expansion.

“From the beginning, I was looking for a bank that understood my business. So, when I approached I&M Bank, I told them, ‘Look, construction requires money all the time.’ I&M was able to understand my business, and they gave me money before I even gave them security. I don’t know how many banks can give you over Shs700 million without security, but I&M Bank was able to do that…and I can say I am a satisfied customer,” Nduhira said while appearing on the Tukikube ne I&M Bank podcast.

He explained that the project-based nature of the construction industry requires financial flexibility, as timelines and costs often shift unexpectedly.

“I have banked with many banks, but when it comes to business relationships, I&M ticks all the boxes. There are moments in business when you need funds urgently, whether to pay suppliers, meet project deadlines or seize opportunities, and in such moments I&M Bank always comes through with the support I need,” he said.

Challenger currently manages several ongoing projects, which Nduhira said means constant expenditure on materials, wages and subcontractors.

“We access contract financing with I&M Bank, and every time we get a new contract, they process the LPO facility promptly,” he said, adding that this has allowed the company to meet payment schedules without delays.

He also cautioned entrepreneurs against misusing business finances.

“Business money is not your money; it’s for the business. You have to separate personal needs from company finances. So, it must be utilized in the business to keep operations running, pay workers, handle projects, and grow. If you misuse it, even with the bank’s support, you can easily run into trouble,” he said.

Nduhira advised start-ups in the construction sector to practice patience, plan finances properly and build long-term relationships with clients and financial institutions