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Barbara Birungi Mutabazi, Co-founder and Executive Director of Hive Colab
Summary:
- Ugandan startups face funding challenges despite their technological innovation. Factors include a lack of investment acumen, limited global exposure, and economic uncertainties. To overcome these hurdles, startups can focus on investment readiness, seek alternative funding sources, and establish international connections for sustained growth.
Uganda, often hailed as the “Pearl of Africa,” boasts abundant technological potential and natural beauty. Within its borders, innovative minds are spearheading solutions that could transform local economies and resonate globally.
Recent years have witnessed a surge in technological innovation across Uganda. Young entrepreneurs are harnessing technology to address pressing issues, from agritech to fintech. They’re crafting platforms to enhance healthcare accessibility, developing apps to boost agricultural productivity, and introducing mobile payment solutions tailored for the unbanked populace.
Despite this vibrant digital ecosystem, Ugandan startups continue to face hurdles in securing essential funding for growth.
Barbara Birungi Mutabazi, Co-founder and Executive Director of Hive Colab, a firm instrumental in providing startups with visibility and aiding them in securing investment, highlighted a critical gap in investment acumen among Ugandan developers. Many struggle to effectively present their business ideas to potential funders, lacking what Mutabazi terms as “investment readiness.” She emphasized the importance of educating innovators on pitching techniques and business proposal essentials to attract investors.
Moreover, the lack of global exposure inhibits Ugandan startups from catching the attention of international investors. Mutabazi stressed the role of organizations like HiveColab in nurturing startups through programs like the Youth Startup Academy Uganda (YSAU), facilitating their participation in global platforms for pitching and exposure.
Robert Bob Okello, Associate National Coordinator of YSAU, echoed the significance of investment readiness in attracting both local and international investors. Through initiatives like participation in global events such as GITEX Africa and similar gatherings, YSAU aims to elevate Ugandan startups onto the global stage, inspired by success stories from other regions.
Michael Niyitegeka, Director of Refactory Academy, emphasized the abundance of talent in Uganda’s tech sector but noted the need for more supportive infrastructure, including incubators and accelerators, to foster startup growth and scalability.
Furthermore, economic uncertainties, particularly during recessions, breed caution among investors, impacting startups’ access to capital. Investors prioritize safer, established ventures over riskier startups during such times, exacerbating funding challenges.
To mitigate reliance on traditional venture capital, Ugandan startups can explore alternative funding avenues like grants, crowdfunding, and strategic partnerships. Strengthening regional investment ecosystems through initiatives like regional venture funds and government support can also broaden funding opportunities.
Establishing international connections with foreign investors, as advocated by organizations like HiveColab, can insulate startups from regional economic fluctuations and open up new funding channels, even in uncertain times.
In navigating funding challenges, Uganda’s tech startups can enhance their resilience and prospects for growth by embracing diverse funding strategies and fostering global partnerships.