The Court of Appeal has handed a decisive victory to South Africa’s Vantage Mezzanine Fund II Partnership, allowing the lender to enforce a $10 million loan against Patrick Bitature’s Simba companies without needing to register locally in Uganda. The ruling, delivered this week, marks a turning point in a legal battle that has spanned nearly a decade and carries wide implications for both local businesses and international financiers.
The dispute dates back to 2014 when Vantage advanced $10 million to Simba Properties Investment Co. Ltd as growth capital to expand its real estate and hospitality ventures. To secure the loan, charges were placed on Simba Telecom Ltd, Linda Properties Ltd, and Elgon Terrace Hotel Ltd, with share transfer documents signed in Vantage’s favor. When Simba defaulted, a series of court battles ensued, with Simba seeking to block recovery efforts through Uganda’s Commercial Division and later contesting enforcement at the Uganda Registration Services Bureau (URSB).
In 2022, the High Court sided with Simba, ruling that Vantage lacked legal standing to sue in Uganda because it was not registered under local partnership or business name laws. That decision has now been unanimously overturned by the Court of Appeal. Delivering the lead judgment, Justice Esta Nambayo ruled that lending money to a Ugandan entity did not amount to “carrying on business” locally and therefore did not trigger registration requirements. She emphasized that barring Vantage from enforcing its rights would amount to unequal legal protection, in violation of Uganda’s Constitution. Justice Fredrick Egonda-Ntende concurred, noting there was no legal basis to deny the fund capacity to sue.
The ruling effectively clears the way for Vantage to enforce the loan and reclaim control over shares pledged as security. It also sets a strong precedent for foreign investors, signaling that Uganda’s courts will uphold cross-border loan agreements without imposing additional registration hurdles. Legal analysts have hailed the judgment as a win for investor confidence, likely to encourage more regional and international funds to extend financing in Uganda’s market.
For Bitature, one of Uganda’s most high-profile businessmen, the decision comes at a challenging time. He has previously argued that the COVID-19 pandemic crippled revenues in hospitality and real estate, leaving Simba unable to service its obligations on time. While framing the dispute as a test of Uganda’s approach to foreign financiers, he has maintained that his companies are not insolvent but in need of restructuring and recovery.
The Court of Appeal ruling, however, underscores the thin line that local businesses walk when engaging global capital. For Uganda, it strengthens the country’s reputation as a fair destination for foreign lenders. For Simba Group, it is a stark reminder that even well-connected enterprises are bound by international agreements, regardless of economic shocks. The message is clear: contractual obligations will be enforced, and the rules of cross-border finance apply to all players equally.