Government has asked struggling stand-alone startups to make partnerships so as to make their business more lucrative.
Mr David Gonahasa, the lead manager for Industry 4.0 bureau at the Ministry of Science, Technology and Innovation, says weak and struggling small and medium enterprises should make partnerships to transform and create jobs.
He said the government has earmarked more than Shs90 billion for the promotion of innovations in the country to support ecosystems, incubation, and other such systems.
“The government is willing to work with investors and scientists through the Ministry of Science, Technology and Innovation. We at the ministry believe innovation should lead to the development of products that consumers are willing to buy,” he said.
Mr Gonahasa made the remarks while officiating at a ceremony where the Youth Start-up Academy Uganda (YSAU) signed an investment deal with Korean venture capital company Ventureport to promote the development of local startups in the country.
YSAU is a project funded by the Korea SMEs and Startups Agency (KOSME). It is implemented by the International Trade Centre (ITC), and Hive Colab in partnership with the National Information Technology Authority (NITA-U). The overall project objective is to contribute to increasing youth employment in Uganda. The project aims to improve the startup ecosystem for young entrepreneurs in Uganda, with the aim of driving innovation and job creation in the region.
The YSAU national coordinator, Ms. Rita Ngenzi, said this transformative project also aims to incubate and nurture talents of 1,000 young entrepreneurs with an ultimate goal to foster a thriving startup ecosystem in Uganda, bolster youth employment and business establishment.
Although Ms Ngenzi did not disclose the package in the investment deal, she quickly said they would be getting technical support from the said donors.
The ceremony showcased modern maker space that YSAU created at Hive Colab. The maker space, equipped with machinery and tools, provides young Ugandan entrepreneurs with a facility to design and innovate their products before bringing them to the market.
However, Mr. Valeriu Stoian, the programme officer, of enterprise competitiveness at the International Trade Centre, said the deal represents the first Korean venture capital investment into a Ugandan company, and he is optimistic that it will be empowering entrepreneurs to contribute to the country’s economic growth.
“This is the first-ever Koran venture capitalists that invest in a private company in Uganda, and the funds they will receive from the company will enable them to create growth of their business,” he said.
