Known as the “Pearl of Africa,” Uganda is a country abundant in technological potential as well as natural beauty. Innovative thinkers throughout the nation are creating solutions that could revolutionise regional economies and leave their imprint on the international scene.
Uganda has witnessed a rise in technological innovation in recent times. Young entrepreneurs are utilising technology to tackle urgent issues, ranging from agritech to fintech. For example, innovators are building platforms to boost healthcare delivery, developing apps to increase agricultural output, and establishing mobile payment solutions specifically for the unbanked population.
These firms have the potential to improve everyday living while also promoting economic growth and finding solutions to pressing problems. Though Uganda has a thriving digital ecosystem, companies have always found difficulty obtaining the funding they need to grow.
Barbara Birungi Mutabazi, Co-founder and Executive Director of Hive Colab, one of the few firms that give the start-up / new company the much-needed visible identity to help promote their offerings and find funding or investment capital, informed Watchdog Uganda that most of the Startups in Uganda lack investment acumen because most developers don’t know who to present their business ideas before the funders.
“Pitching a business is a different thing from sitting down and developing a certain tech solution and from my experience, I have seen many startups with very convincing ideas but can not present them before funders. That’s why here at HiveCalab we help our innovators and teach them how to pitch for business and how a business proposal must look because most Ugandan Startups lack what we call investment readiness. No investor will put their money in a firm that is not showing a green future because this is business and most developers tend to forget that,” she said.
She also added that most of Ugandan startups often lack the global exposure that attracts international investors. Many potential funders are unaware of the innovative work being done in Uganda simply because it hasn’t reached their radar.
“That’s why here at HiveColab play a pivotal role in nurturing Youth Startup Academy Uganda (YSAU) startups, shaping the next generation of tech entrepreneurs. The YSAU program is implemented in collaboration with the International Trade Centre, Korea SMEs and Startup Agency, and NITA Uganda. These partnerships provide a robust foundation for developing and scaling startup ventures. And with this innovators under this program have been able to participate on global platforms which helps them to pitch their businesses and also get exposed,” she added.
Robert Bob Okello, Associate National Coordinator of YSAU, also added that across the globe investment readiness has always been and will always be the master key for any investor both local and international.
“Our mission is to prepare startups for investor readiness and to position them on platforms where they can interact with regional and international investors. By participating in events like GITEX Africa in Marrakesh and similar events in Korea, we aim to expose our startups to the global stage. The success of the YSAU program in Korea, which has already produced two unicorns, inspires us to replicate this success in Uganda.”
Micheal Niyitegeka, the director of Refactory Academy, a pioneer training academy in Uganda that offers alternative industry-led skilling for the global technology industry. Which is also focused on equipping learners with skills to enable them to venture into a Tech career of choice. Told Watchdog Uganda that while talent is abundant, the infrastructure to support tech startups – such as incubators, accelerators, and co-working spaces – is still developing. This can limit the growth and scalability of startups.
Studies have also indicated that in times of economic recession or unpredictability, investors have exhibited heightened caution and risk aversion, thereby considerably affecting startups’ capacity to obtain capital. If general market conditions are unfavourable, even enterprises with good performance and bright futures may find it difficult to attract investment.
Investors prioritise capital preservation, which makes them prefer safer, more established investments over startups with greater risk profiles. This is the driving force behind their cautious behaviour. Economic uncertainty also frequently leads to decreased liquidity, which means investors have less money to spend, which further restricts the quantity and amount of investments made in new businesses.
However, Ugandan Startups can lessen their dependency on traditional venture capital by investigating a variety of funding options, including grants, crowdfunding, and strategic alliances, to overcome these obstacles. More robust funding sources can be created by bolstering regional investment ecosystems through the establishment of regional venture funds, angel investor networks, and government assistance.
Furthermore, establishing international ties with foreign investors like how HiveColab is doing can reduce the influence of regional economic conditions and lead to new funding options. Even in times of economic uncertainty, businesses can increase their chances of getting the funding they need by utilising these tactics.
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