Grace Ashiru
Uganda is looking to increase foreign investment in its expanding startup ecosystem following discussions between Legacy Hills Investments Ltd and Italian investors on funding opportunities for technology companies across East Africa.
The talks were held during the Startup Africa Roadtrip Roadshow and the WMF (We Make Future) innovation conference in Milan and Bologna, where Legacy Hills highlighted Uganda’s startup ecosystem while urging European investors to support local technology ventures.
The engagements come as Uganda faces the challenge of having one of the world’s youngest populations, with almost 80% of its citizens under the age of 30 and about 700,000 young people joining the labour force annually.
Analysts believe startups and small businesses can play a key role in creating jobs for the growing workforce, although many entrepreneurs continue to face difficulties securing affordable long term financing.
Legacy Hills Chief Executive Officer Sharon Tumushabe said global investors are increasingly expanding their focus beyond Africa’s traditional investment hubs as they recognise the potential of emerging markets like Uganda.
“Investors are showing growing interest in markets where innovation addresses real world challenges and offers strong growth potential. Uganda has proven its ability to bypass traditional systems, especially in financial services and digital inclusion,” Tumushabe said.
According to Tumushabe, the meetings in Italy helped deepen ties between East African entrepreneurs and European investors, creating opportunities that could lead to new funding partnerships.
“There is increasing recognition that some of Africa’s most innovative solutions are emerging from countries that have traditionally received less venture capital. Our responsibility is to close that gap by linking local entrepreneurs building scalable businesses with global investment,” she said.
Legacy Hills revealed plans to launch Uganda’s first institutional venture capital fund, which will raise investment from pension schemes, institutional investors, and family offices to support high potential startups across Uganda and the wider East African region.
Tumushabe said Uganda possesses the key elements needed to develop globally competitive companies, including a youthful population, rising digital adoption, and entrepreneurs using technology to address local challenges. She added that the biggest gap has been access to patient capital that recognises the long term potential of these businesses.
If launched successfully, the fund could ease one of the greatest challenges facing Ugandan entrepreneurs by providing an alternative to commercial banks, which often require collateral and consider early stage businesses too risky. As a result, many startups have been forced to rely on grants, personal savings, or foreign investors.
In recent years, Uganda’s startup ecosystem has recorded steady growth, with financial technology, agriculture, health technology, and clean energy emerging as some of its strongest sectors.
Uganda has emerged as a regional leader in digital financial services, with millions of people relying on mobile platforms to save, send, and receive money, while mobile money transactions reach hundreds of trillions of shillings each year.
During the discussions in Italy, Legacy Hills showcased how Uganda has used mobile money to improve financial inclusion by giving people in rural and underserved communities access to financial services without relying on traditional banking infrastructure.
Legacy Hills also highlighted the Bank of Uganda’s regulatory sandbox, noting that it enables fintech companies to test new products under regulatory oversight and has contributed to establishing the country as one of East Africa’s emerging fintech markets.
As an example of homegrown innovation, Legacy Hills highlighted XENO Investment, a platform that allows users to invest through USSD technology without the need for smartphones or internet access, making investment services accessible to communities often left out of conventional financial products.
Tumushabe said the true value of attracting venture capital for ordinary Ugandans lies in creating jobs, improving services, and giving young people greater opportunities to build businesses capable of competing across the region and globally.
As global investors continue to explore growth opportunities across Africa, Uganda is positioning itself as a hub for technology investment and entrepreneurship led economic development. Government officials and private sector stakeholders are optimistic that stronger international partnerships will unlock the country’s expanding pool of entrepreneurial talent.
