Building Successful Tech Startups in Uganda: Lessons and Reflections

Since October 2022, I’ve been deeply immersed in Uganda’s tech startup ecosystem. Over this time, I’ve organized more than 50 ecosystem events and engaged with over 1,000 entrepreneurs at varying stages of their journeys - some at the idea stage, others scaling their growth-stage ventures.

In this period, I’ve witnessed both inspiring successes and sobering failures. I’ve seen startups that appeared strong on the surface but struggled behind the scenes. I’ve watched companies that had raised hundreds of thousands and millions of dollars shut down. These experiences have been both eye-opening and concerning, especially when they involve people I know personally.

These observations have left me pondering some critical questions: What is holding back our ecosystem? What steps can we take to build successful tech startups in Uganda?

For anyone considering starting a tech or tech-enabled startup, I’ve put together a few practical insights to help navigate the challenges of building a sustainable and scalable business:

1. Consider Having a White Co-Founder

While this point may be uncomfortable for some, it’s a reality shaped by the dynamics of global venture capital. Most venture funding flowing into Africa originates from Western countries. Relationships are key to business, and investors often feel more comfortable and connected when someone on the team comes from a familiar background.

Think of it this way: if you were investing $1M, would you trust it more with someone you can personally relate to and easily communicate with, or a distant stranger? This relational gap often works against African startups. Having a diverse founding team - one that includes a Western co-founder can serve as a bridge to unlock opportunities in the global funding ecosystem.

2. Start in Uganda, Scale Beyond It

Uganda’s tech ecosystem has struggled to attract significant venture capital, with funding often concentrated among just a handful of startups each year. 

From a strategic standpoint, it makes sense to expand beyond Uganda at the growth stage. Countries like Kenya, South Africa, Egypt, Nigeria, Rwanda, and Ghana offer stronger investor interest, more mature ecosystems, and access to larger markets. While starting in Uganda allows you to refine your product and build traction, scaling to a regional or continental presence positions you for broader opportunities.

3. Build a Strong Technical Team and Product

Ideas are abundant, but execution sets successful startups apart. It’s not enough to have a great pitch or story - you need a functional, high-quality product on the market. This requires a competent and reliable technical team that can bring your vision to life.

Your ability to execute will build your reputation and create trust with partners, customers, and potential investors. Don’t be full of promises; let your product speak for itself.

4. Focus on Sales from the Start

While fundraising rounds often dominate startup headlines, the reality for many Ugandan startups is that venture capital might not come as quickly as expected - if it comes at all. Instead of relying solely on funding rounds, focus on generating sales revenue from the very beginning.

A strong revenue model not only sustains your operations but also demonstrates your business’s viability to potential investors. Balancing sales-driven growth with fundraising efforts ensures that you’re building a financially resilient company.

5. Pivot to an SME if Necessary

Not every startup idea will succeed as a tech company. If you’re struggling to validate your concept during the early stages, consider pivoting into a Small and Medium Enterprise (SME). Unlike tech startups, Uganda is a more favorable environment for SMEs, offering friendlier government policies, easier access to financing, abundant market opportunities, and affordable human capital.

SMEs are also a focus for many entrepreneur support organizations, which provide resources and mentorship to help them thrive. Pivoting doesn’t mean failure - it means adapting to find a path that works.

Uganda’s tech startup ecosystem is brimming with potential, but the path to success requires careful planning, adaptability, and a willingness to think strategically. By focusing on execution, building strong teams, diversifying revenue streams, and expanding beyond borders, we can create startups that not only survive but thrive.

If you’re an entrepreneur in Uganda’s tech space, I encourage you to reflect on these insights and consider how they apply to your journey. Which of these strategies resonates most with your goals? Share your thoughts, experiences, or questions - I’d love to hear from you!

Together, let’s build a stronger, more sustainable tech ecosystem for Uganda and beyond.

Note: The ideas shared in this article reflect my personal views and are not representative of any organization I work for or am affiliated with.