A Statement on the Simba Group Business Dispute
In recent days, the public conversation around the Simba Group has been filled with speculation, media commentary, and misunderstandings regarding an ongoing business dispute.
These developments have understandably caused concern among our partners, staff, investors, and the broader community that has walked this journey with us.
I consider it important to address this matter openly and responsibly.
The past few days have been difficult not only for me personally, but also for my family, colleagues, and the many people whose livelihoods are connected to the Simba Group. When a Ugandan enterprise that has invested heavily in the country’s development faces public scrutiny, the impact goes far beyond one individual or one company. It touches employees, partners, and the wider business environment that supports local entrepreneurship.
For decades, the Simba Group has stood as a testament to what Ugandan enterprise can achieve. Our investments in hospitality, energy, real estate, and technology have been guided by a belief that local businesses must play a central role in building our nation’s economic future. It is therefore unfortunate that the current dispute has generated narratives that risk undermining the confidence required for local businesses to thrive.
While certain aspects of this matter remain before the courts and arbitration processes, I believe it is necessary to share the factual background to provide clarity to our stakeholders.
The Beginning of the Partnership
In 2014, the Simba Group sought alternative financing to support its expansion projects. Rather than relying solely on traditional debt, the Group entered into a Mezzanine Term Facility Agreement (MTFA) with Vantage Mezzanine Fund II Partnership. Through this arrangement, Simba Properties Investment Company secured a facility of 10 million US dollars.
This funding was intended to support key projects within the Group, including the completion of the Protea by Marriott Skyz Hotel and the provision of working capital for ElectroMaxx Power, one of the Group’s strategic energy investments.
The agreement included a three year moratorium, allowing Simba to focus on completing its projects before beginning repayment of both principal and interest.
Challenges and Renegotiation
By 2017, when the first repayment was due, the business environment had changed significantly. The anticipated Final Investment Decision on Uganda’s oil and gas projects had been delayed, and additional requirements were introduced to upgrade the hotel’s fire and safety systems to meet international standards.
Recognizing these challenges, Simba Group engaged Vantage Capital in discussions. The parties mutually agreed to extend the moratorium for an additional two years, effectively freezing repayments until December 2019.
This decision reflected a shared understanding of the evolving economic landscape and the need to safeguard the success of the projects involved.
Escalation of the Dispute
In December 2019, Vantage issued a demand for repayment of the principal and accumulated interest dating back to 2014. Soon after, the global COVID-19 pandemic struck, creating unprecedented disruptions across industries.
Like many businesses around the world, Simba Group faced severe operational challenges during this period. Despite these circumstances, attempts were made by Vantage to realize security over certain prime assets belonging to the Group.
As a result, the matter was referred to court. The court directed that the dispute be resolved through arbitration, in accordance with the terms of the agreement. Vantage selected London as the seat of arbitration and initiated proceedings before the International Chamber of Commerce.
Simba Group acknowledged the request and has continued to participate in the arbitration process in good faith.
Legal Developments
During the course of the dispute, Vantage attempted to transfer shares in Simba that were held as security under the financing arrangement. The Uganda Registration Services Bureau (URSB) declined to register the transfer, directing that the matter should first be resolved through arbitration as instructed by the court.
Vantage subsequently sought judicial review from the High Court to compel URSB to effect the transfer. However, the court dismissed the application, citing non compliance with certain statutory requirements that effectively prevented Vantage from pursuing the action.
Despite this ruling, advertisements were later published concerning certain assets of the Group. These developments triggered widespread discussion across social media platforms and traditional news outlets.
A Commitment to Resolution
Throughout this process, our position has remained consistent. Simba Group is committed to resolving this dispute lawfully, fairly, and as quickly as possible through the proper legal channels.
We continue to respect the institutions of justice and the arbitration process currently underway. At the same time, we remain fully committed to protecting the interests of our employees, partners, investors, and the Ugandan economy that has supported our growth.
This moment calls for patience, clarity, and trust in due process.
Looking Forward
Entrepreneurship is never without challenges. Building large scale businesses in emerging markets often requires resilience, long term thinking, and unwavering commitment to national development.
Despite the current circumstances, our vision remains unchanged. Simba Group will continue to invest in Uganda, create opportunities for our people, and pursue ventures that contribute to the country’s prosperity.
I would like to reassure all our stakeholders that we are actively working toward a just and responsible conclusion to this matter.
Uganda has always been our home, our inspiration, and our greatest investment.
And for that reason, we remain steadfast in our commitment to serve God and Country.
