KAMPALA — Uganda is seeking to attract more foreign investment into its growing startup sector after local investment firm Legacy Hills Investments Ltd held talks with Italian investors on financing opportunities for East African technology companies.
The discussions took place during the Startup Africa Roadtrip Roadshow and the WMF (We Make Future) innovation conference in Milan and Bologna, where Legacy Hills showcased Uganda’s innovation ecosystem and encouraged European investors to back local startups.
The engagements come as Uganda grapples with one of the world’s youngest populations, with nearly four out of every five citizens aged below 30 and an estimated 700,000 young people entering the labour market each year.
Analysts say startups and small businesses could play a crucial role in absorbing this workforce, but many entrepreneurs struggle to access affordable long-term financing.
Legacy Hills Chief Executive Officer Sharon Tumushabe said international investors were increasingly looking beyond Africa’s traditional investment destinations and beginning to appreciate opportunities in emerging markets such as Uganda.
“Investors are increasingly interested in markets where innovation is solving real problems and where there is significant room for growth. Uganda has demonstrated that it can leapfrog traditional systems, particularly in financial services and digital inclusion,” Tumushabe said.
She said the discussions in Italy had strengthened relationships between European investors and East African entrepreneurs and could pave the way for new funding partnerships.
“There is a growing appreciation that some of Africa’s most innovative solutions are being built in countries that have historically attracted less venture capital. Our role is to bridge that gap and connect global capital with local entrepreneurs who are building scalable businesses,” she said.
Legacy Hills also announced plans to establish an institutional venture capital fund in Uganda aimed at mobilising capital from pension schemes, institutional investors and family offices to finance high-potential startups in Uganda and across East Africa.
“We believe Uganda has the ingredients necessary to build globally competitive companies — a young population, increasing digital adoption and entrepreneurs solving local challenges with technology. What has been missing is patient capital that understands the long-term potential of these businesses,” Tumushabe said.
If successful, the fund could help address one of the biggest constraints facing Ugandan entrepreneurs. Commercial banks typically require collateral and often view early-stage businesses as too risky, leaving many startups dependent on grants, personal savings or foreign investors.
Uganda’s startup ecosystem has expanded steadily in recent years, particularly in financial technology, agriculture, health technology and clean energy.
The country has become a regional leader in digital financial services, with mobile money transactions worth hundreds of trillions of shillings annually and millions of Ugandans using mobile platforms to save, send and receive money.
During discussions in Italy, Legacy Hills highlighted Uganda’s success in using mobile money to expand financial inclusion, allowing people in rural and underserved communities to access financial services without traditional banking infrastructure.
The company also pointed to the Bank of Uganda’s regulatory sandbox, which allows fintech firms to test new products under regulatory supervision and has helped position the country as one of East Africa’s emerging fintech markets.
Legacy Hills cited the success of XENO Investment as an example of locally developed innovation. The platform enables users to invest through USSD technology without requiring smartphones or internet access, helping reach communities often excluded from conventional investment products.
“For ordinary Ugandans, the real impact of attracting venture capital is jobs, better services and more opportunities for young people to build companies that can compete regionally and globally,” Tumushabe said.
As global investors increasingly look to Africa for growth opportunities, Uganda is seeking to position itself as a destination for technology investment and entrepreneurship-driven economic development, with officials and private sector players hoping stronger international partnerships will help unlock the country’s growing pool of entrepreneurial talent.
