Uganda Management Institute (UMI) and Tech Buzz Hub have partnered with the Startup Funding Vehicles (SFV) Initiative to bolster Uganda’s local investment ecosystem and reduce reliance on foreign aid.
The initiative seeks to educate and connect local investors with entrepreneurs through bi-monthly Investor Knowledge and Learning webinars.
The CEO of TechBuzz Hub Keneth Twesigye said building a startup in Uganda has always been an overwhelming challenge, “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 underscores this challenge, over a decade ago, he launched a security-focused startup aimed at reducing crime through public policing with embedded systems and hardware.
However, the venture struggled due to financial constraints, a breakthrough came when he received a $5,000 seed capital from the Tony Elumelu Foundation, illustrating the transformative power of investment.
Uganda’s startup sector continues to grapple with financing difficulties. A 2022 report indicated that 60% of small and medium-sized enterprises (SMEs) struggled to secure funding. In 2025, 53.8% of startups still cite access to capital as a major hurdle.
Meanwhile, countries like Nigeria, Kenya, South Africa, and Egypt benefit from robust local investment networks and startup-friendly policies, highlighting Uganda’s need for a stronger investor base.
To address this gap, SFV has launched an educational campaign aimed at investors and entrepreneurs. Last week, the initiative, in collaboration with UMI and TechBuzz Hub, hosted a webinar that attracted 144 participants.
Brenda Amony Yikii, Portfolio Relationship Manager at Financial Sector Deepening Uganda (FSDU) – Deal Flow Facility, was 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 has actively participated in regional and international investor forums, including AfriLabs’ Navigating Investments in Emerging Economies, Tunisia’s Flat6 Labs Investor Roadshow, and the Ministry of Finance’s National Competitiveness Forum. The initiative aims to expand investor networks, establish startup investment support centers, and diversify funding sources through 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.”
