Uganda Should Bet on Its Technoprenuers for Economic Transformation And Job Creation

When I arrived at university in 2010, I was one of the first few students to acquire a smartphone, and students would congregate around me to examine this new piece of technology. According to the Uganda Communications Commission, just 750,000 Ugandans had smartphones at the time, and 3G access was under 1%. Then came the digital revolution, with 7.9 million Ugandans owning smartphones in 2020, over 20 million internet subscribers, and 3G connection covering 78 percent of the country. Uganda has an opportunity to build an inclusive digital economy as a result of this rapid increase in smartphone ownership, internet penetration, and connection.

The digital economy has given governments all over the world enormous opportunities to address today's most serious social and economic issues. Using the United States as an example of a mature technology ecosystem, the top ten major technology corporations directly employ 2.25 million people, with a market value of $9.19 trillion. These have fueled the 4th and now 5th Industrial Revolutions by creating not only jobs and national wealth, but also opportunities for businesses and individuals. Almost all of these businesses were founded in basic garages by recent grads or college dropouts, and in less than ten years, they had a substantial national and global impact.

The same thing is happening in Europe, China, and India. In 2021, India's technology startups created over 200,000 direct jobs, attracting $42 billion in investment, the majority of which was foreign direct investment (FDI), up from $11.5 billion in 2020.

Uganda's developing digital economy has the potential to create millions of jobs while simultaneously addressing crucial challenges in a variety of sectors, culminating in a ripple effect that would transform the economy. Uganda has a demographic advantage because it is the second-youngest country on the planet. Every year, the country produces a large number of young graduates who might be employed as a creative force to create millions of employment and modernize key industries like agriculture, tourism, and transportation. These young people are the most valuable resource in the country. These have innovative ideas as well as the drive and motivation to develop scalable innovations and business models. All they need is a friendly environment, supportive legislation, and incentives to help them secure venture capital and through the arduous early stages of starting and building a business.

Nigeria, Egypt, South Africa, Ghana, Rwanda, Kenya, and other African countries are already positioning themselves to attract foreign direct investment into their technological ecosystems, seeing technology as the next frontier for economic development. Technology startups in Africa raised $5.2 billion in 2021, according to Partech Africa 2021, with Nigerian tech companies raising $1.8 billion, South African tech companies raising $832 million, Ghanaian tech companies raising $167 million, Kenyan tech companies raising $571 million, and Ugandan tech companies raising less than $30 million.

These African countries that are attracting international investors to their technology ecosystems have worked hard to create an environment that allows technology firms to thrive and acquire international recognition. Rwanda, a small and resource-poor country, has deliberately increased the ability of its domestic digital entrepreneurs to raise venture financing both locally and internationally. In 2021, Ampersand, a Rwanda-based transportation technology business, raised $13 million, accounting for nearly half of all funding in Ugandan startups.

Uganda still has great potential to position its innovators and startups, through providing them with a favorable environment and incentives, helping them build scalable and lucrative technology enterprises that will create millions of jobs and transform the Ugandan economy. The Ugandan government must focus quickly on creating a strong ecosystem that allows startups to thrive and attract investment from both local and foreign investors.