Uganda latest country to take steps to facilitate IP-backed finance

Photo by Keith Kasaija on Unsplash - Ugandan capital Kampala

The Ugandan government has announced plans to change rules and regulations to allow Ugandan Micro, Small and Medium Enterprises (MSMEs) to use their intellectual property as collateral for bank lending, the country’s media reports.

According to a story on the Ugandan news website, The Independent, Patrick Mugisha, the Commissioner in charge of Business Development and Quality Assurance at the Ugandan Ministry of Trade, Industry, and Cooperatives, discussed the moves at the launch by the country’s Ministry of ICT and National Guidance (formerly the Ministry of Information and Communications Technology) of its new Intellectual Property Guidelines.

Commissioner Mugisha said that The Ministry of Trade will prioritise innovation and IP management for SMEs to support Uganda’s push to grow its GDP tenfold by 2040.

He said: “Using intellectual property (IP) rights as collateral presents significant benefits for Uganda’s banking and financial institutions, particularly in fostering innovation-driven economic growth for MSMEs. The Ministry of Trade, Industry and Cooperatives through the Department of Business Development and Quality Assurance will position itself strategically to partner with the banking sector to embrace IPRs as a sustainable option to access affordable financing.”

Uganda’s new IP Guidelines have been written by the Ministry of ICT and National Guidance working in collaboration with the Japan International Cooperation Agency (JICA) under the UJ-Connect Project.

Commissioner Mugisha added: “By enabling banks to finance startups and MSMEs in creative, technology, and knowledge-driven industries, IP-backed lending broadens the customer base and supports entrepreneurs who lack traditional collateral. Recognizing and valuing IP assets—such as patents, trademarks, and copyrights—strengthens bankable assets, reducing risk aversion and encouraging financial institutions to diversify their product offerings.”

A key objective of the new guidelines is to educate MSMEs across Uganda in how to better manage and protect their IP and other intangible assets, and then monetise them, including by using them as collateral.