The 1% country: Uganda’s contrarian tech play

Last updated: June 21, 2025 12:08 am

ANH Team

At the heart of Uganda’s tech ambitions lies a commitment to building the hard stuff, investing in manufacturing, research, and infrastructure to create a robust ecosystem that can support innovation and growth. While other African countries may focus on flashy app demos and quick exits, Uganda is taking a different approach, prioritizing substance over spectacle.

With a young and densely populated population, Uganda offers a unique testing ground for new technologies. The country’s abundance of hydroelectric power ensures a stable electricity supply, creating the conditions for manufacturing at scale. This infrastructure advantage sets Uganda apart from many other African nations and provides a solid foundation for tech companies looking to expand.

Despite receiving less than 1% of Africa’s total VC funding in 2024, Uganda sees this as an opportunity to carve out its own path and build a truly unique tech ecosystem. Government-backed initiatives are focused on hardware prototypes, research, and development, creating a pipeline approach that prioritizes long-term growth over short-term gains.

The political will in Uganda is also a key factor driving the country’s tech ambitions. Concrete policy changes, such as tax breaks for early-stage companies and investment in infrastructure, demonstrate a commitment to supporting innovation and entrepreneurship. The approval of a tech city project further underscores the government’s dedication to creating a thriving tech ecosystem.

With a population of 48 million in a relatively small geographic area, Uganda offers entrepreneurs a valuable validation market where products can be tested and refined before scaling to larger African markets. The government’s ambitious GDP target of $500 billion reflects a serious intent to drive economic growth through technology and innovation.

As Uganda positions itself as a hub for tech and innovation in Africa, investors and entrepreneurs are taking notice. Dr. Monica Musenero’s rallying call to investors at the Uganda Investor Summit signals that the country is open for business and ready to showcase its unique approach to technology. With a focus on building the hard stuff and investing in the future, Uganda is setting itself apart as a contrarian tech play in Africa.

Uganda’s unique approach to building a sustainable tech ecosystem is proving to be a game-changer in the African tech landscape. By focusing on building the hard stuff first, Ugandan founders are creating sustainable competitive advantages that outlast the hype cycles that have defined much of African tech.

At a recent investor summit, it was evident that Uganda’s strategy is paying off. Investors pointed to a maturing generation of Ugandan founders who are building for complexity rather than virality. Companies like FutureLink, eMyShopp, Flow, and Tripesa have already attracted investment from funds that initially overlooked the Ugandan market.

David Gonahasa, Managing Director at Tripesa, expressed confidence in the early believers in Uganda’s approach, highlighting the vindication felt by those who got in early. The challenge now lies in scaling this model while maintaining its distinctive character. Policy execution, regulatory delays, and a shallow private capital pool are some of the hurdles that Uganda must overcome.

However, these challenges may be the very factors that create a competitive moat for Uganda’s tech ecosystem. The country’s deliberate choice to take the harder path could be what sets it apart from other African tech hubs.

As the summit concluded, the message was clear – Uganda is ready for investment. The country boasts what could easily be the best validation market in Africa, and now it needs the money to fuel its growth. Investors are urged to take this journey with Uganda, as the country prioritizes substance over spectacle and long-term value creation over quick returns.

In a continent where tech success is often measured by funding rounds rather than real-world impact, Uganda’s focus on manufacturing, infrastructure, and deep-tech solutions offers a refreshing alternative narrative. The question now is whether investors are ready for a relationship that prioritizes substance over spectacle and long-term value creation over quick returns.

In a tech ecosystem dominated by familiar patterns, Uganda’s unconventional approach may just be the disruption that the continent needs. The country’s bet on being different could pave the way for a new era of innovation and impact in African tech.