Uganda Management Institute (UMI) and TechBuzz Hub have partnered with the Startup Funding Vehicles (SFV) Initiative to strengthen Uganda’s local investment ecosystem and reduce reliance on foreign aid.
This initiative aims to bridge the funding gap by educating and connecting local investors with entrepreneurs through bi-monthly Investor Knowledge and Learning webinars.
“Building a startup in Uganda has always been an overwhelming challenge,” said Keneth Twesigye, CEO of TechBuzz Hub. “Many entrepreneurs struggle with product development, customer acquisition, team-building, and most importantly, securing funding. The lack of local investors has led to many startup failures.”
Twesigye’s personal experience highlights this issue. Over a decade ago, he launched a security-focused startup aimed at reducing crime through public policing with embedded systems and hardware.
However, financial constraints stalled the venture. His breakthrough came when he received a $5,000 grant from the Tony Elumelu Foundation, demonstrating the transformative power of investment.
Uganda’s startup ecosystem still faces significant financial hurdles. A 2022 report showed that 60% of small and medium-sized enterprises (SMEs) struggled to secure funding.
By 2025, 53.8% of startups still cite access to capital as a major challenge. Meanwhile, Nigeria, Kenya, South Africa, and Egypt continue to thrive due to strong local investor networks and startup-friendly policies, highlighting Uganda’s need for a more robust investment base.
To address this gap, SFV, in collaboration with UMI and TechBuzz Hub, has launched an educational campaign targeting investors and entrepreneurs.
Their recent webinar, held last week, attracted 144 participants, with Brenda Amony Yikii, Portfolio Relationship Manager at Financial Sector Deepening Uganda (FSDU) Deal Flow Facility, as the keynote speaker.
“Investors assess several factors before committing their funds, including a startup’s scalability, financial stability, market potential, and competitive advantage,” Amony Yikii explained.
“However, accessing private capital remains difficult due to limited investor networks, regulatory barriers, and perceived risks. Overcoming these challenges requires strong networking, financial literacy, alternative funding models, and mentorship.”
SFV is actively engaging with regional and international investor forums to build stronger investment opportunities. These include AfriLabs’ Navigating Investments in Emerging Economies, Tunisia’s Flat6 Labs Investor Roadshow, and the Ministry of Finance’s National Competitiveness Forum.
Through these efforts, SFV aims to expand investor networks, establish startup investment support centers, and diversify funding sources using private capital, crowdfunding, and grants.
“We are building a movement to unlock Uganda’s startup potential,” Twesigye stated. “I urge Ugandans to engage with SFV, attend our webinars, and be part of shaping the future of local investment.”
This partnership represents a major step toward creating a self-sustaining investment ecosystem in Uganda, empowering startups and entrepreneurs to thrive without solely depending on foreign funding.