The journey toward establishing a robust Startup Policy in Uganda has been marked by collaboration, research, and a commitment to empowering local entrepreneurs. We spoke with two key leaders in the Uganda Startup Ecosystem, Vincent Okettayot and Keneth Twesigye, to gain insights into this significant policy development.
Vincent serves as the Deputy Chairman of the Startups Policy Intervention Project Technical Committee at Uganda’s Ministry of Trade, Industry, and Cooperatives. Keneth is the Founder & CEO of TechBuzz Hub and the Policy Lead for Startup Uganda. Both have participated in the i4Policy’s Entrepreneurship Policy Learning series, which they credit as crucial in shaping their policy work.
A Pivotal Moment
The journey began in May 2021 at the Sheraton Kampala Hotel, where a much needed policy dialogue was hosted by the Private Sector Foundation Uganda (PSFU) and funded by the Mastercard Foundation. This high-level meeting highlighted the urgent need for government support for the startup ecosystem.
Following this dialogue, a position paper was presented to the Ministry of Trade, Industry, and Cooperatives, leading to the formation of a Technical Working Group (TWG). This group, comprising ministry staff and private sector partners, was tasked with developing startup interventions. The TWG’s participation in the i4Policy Entrepreneurship Policy Course provided essential skills in policy design and implementation, which were pivotal for their ongoing efforts.
Research and Collaboration
Empowered by their training, the TWG conducted comprehensive research, engaging with startup hubs and ecosystem players across the country. They performed a Regulatory Impact Assessment (RIA) to evaluate the potential impacts of the proposed policy.
The validated RIA report received approval from the ministry’s top management and the Office of the President, setting the stage for the draft National Startup Policy. This policy represents a collaborative effort among government entities, private sector stakeholders, international partners, and youth startup representatives, promising to foster job creation, economic growth, and innovation in Uganda.
Legislative Support
In parallel, the Parliamentary Youth Council, led by Hon. Boniface Okot, introduced a private member’s bill, the Startup Bill, in Parliament. This process highlights the collaborative nature of the policy’s development, with support from the TWG and KOICA.
The RIA report received approval from the Cabinet Secretariat, recommending the establishment of startup policies and laws. Keneth Twesigye emphasized the importance of workshops and capacity-building sessions for the Technical Working Committee to ensure efficient development of the Startup Act.
“I encouraged members of the technical working committee to complete the i4Policy MOOC — a free Entrepreneurship policy course. The feedback was overwhelmingly positive,” said Twesigye.
Progress and Challenges
Fast forward to May 2024, a 9th Draft Version of the Startup Policy was presented. The evolution from the first to the ninth draft was facilitated by multiple workshops that incorporated stakeholder feedback for continuous improvement.
The need for the Startup Policy is particularly pressing given Uganda’s low ranking on the African Entrepreneurial Ecosystem Index (AEEI), where it stands at 28 out of 29 countries, just above Zimbabwe. The ecosystem faces significant challenges, including limited access to finance, bureaucratic registration processes, infrastructural deficits, and a shortage of skilled labor.
Vincent Okettayot outlined these challenges and the policy’s intended measures:
“Startups struggle with lengthy registration processes and unclear tax regulations. The new policy aims to reduce bureaucracy, provide incentives, improve infrastructure, and cultivate a culture of innovation.”
While some resistance emerged from stakeholders, extensive consultations have refined the policy to garner broader support.
Looking Ahead
Currently, the only significant delay in the policy’s progression is the benchmarking process, which requires funding for both physical and virtual international study visits. Progress has been made, including a successful benchmark study visit to the Tunisian startup ecosystem.
Once these findings are integrated into the next draft, the “Final Startup Policy draft” will be prepared for presentation to the Ministry of Trade, Industry, and Cooperatives. The Minister and Permanent Secretary will then defend it in Parliament.
We wish Team Uganda success in the final stretch of their Startup Act journey!
Resources for Change-Makers
For those interested in learning more about entrepreneurial ecosystems, the i4Policy course is now available as a self-guided Entrepreneurship Policy Online Learning Series at www.learn.ecosystem.build.
Explore additional resources, including the Library of Startup Acts and the latest Startup Benchmarking Report, at the ecosystem.build repository.
Did you know?
TechBuzz Hub is a member of two innovation and technology driven associations: Startup Uganda – an association of Innovation hubs and Enterprise Support Organisations in Uganda for concerted efforts policy advocacy, embracing innovation and growth of the startup ecosystem in Uganda. TechBuzz Hub is also a member of AfriLabs – an association of Technology and innovation hubs across the continent with over 480 members across the 53 countries in Africa whose vision is “a thriving innovation economy in Africa driven by its community “.
Written by;
Belisa Rodrigues
