Unlike Uganda, 90% of capital invested innovations in the United States comes from public entities like pension funds, department of Defence among other government linked parastatals.

95% of China’s investments in Arica is controlled by state owned banks in relation to countries like South Africa, Saudi Arabia and United Arab Emirates.

Presently, Uganda relies on corporate companies such as National Social Security Fund (NSSF), Standard Bank Group (Stanbic Bank, SBG), Uganda Development Bank (UDB), Private Sector Foundation Uganda (PSFU) among others who have taken up the role to offer support to start-ups mainly due to the lack of nationalized incubation business centers.

There is a rise of numerous Non-Governmental Organisations (NGOs) that offer grants to at low to zero interest rates hence affecting the competitive-edge of many small-scale businesses and marginalizing their chances to scale-up.

 

THE EMERGENCE OF CORPORATE TO INNOVATIONS FUND.

• National Social Security Fund (NSSF)

Mr. Stevens Mwanje (Chief Financial Officer, NSSF)

We offer seed funding to the tune of $20,000 to start-ups in our incubation business hub.

Our target is 500 start-ups & over 700,000 young entrepreneurs.

This is done to make them investible (investor-ready)

Our next phase involves scaling-up a couple of successful start-ups to the tune of $75,000.

• Uganda Development Bank.

Mr. James Otto (Senior Investment Manager, UDB)

We invest where we feel we can have maximum impact: 35 billion in capital ventures. Our non-financial instruments can be more effective in such environments.

Offer business advisory

Offer project preparation – seed funding

Offer private equity & development structured financing.

• Stanbic Bank Uganda.

Mr. Joel Muhumuza (CEO, Fly Hub - Stanbic Bank)

In partnership with UDB, we have a small pot of funds within the incubation centers to streamline start-ups, giving them 3-years’ worth of experience then offer preferential funding.

We have enabled even the non-bank customers to use the flexi-pay app to transact freely in order achieve financial inclusion and gain understanding of the general public in terms of financing.

• The Private Sector Foundation – Uganda (PSFU).

Mr. Apollo Mayanja Mbazira (Private Sector Foundation - Uganda)

Our goal is to set-up a private sector catalytic fund – $1B.

In partnership with the MasterCard Foundation & other anchor partners – $300M.

We’re coming up with a policy where the top 100 corporate companies in Uganda support numerous start-ups and channel specific businesses to scale-up. From $10,000 to $10M.

APPEAL TO THE GOVERNMENT.

By and large, The role of government should be revising the investment policy for start-ups; specify the criteria for attaining grants and business loans to encourage scale-up and competitiveness within the business market.

Government should revise the procurement procedures; allow local companies do repairs/replacement of faulty products and services – “Buy Uganda, Build Uganda” this will generate internal revenue in terms of taxes and employment opportunities to the locals.