A person using internet services at a work station. PHOTO | MICHAEL KAKUMIRIZI
Local entrepreneurs in Uganda are like birds with wings wide open, soaring toward the sky of endless possibilities.
But just like any bird facing a storm, they encounter challenges—limited resources, lack of mentorship, and sometimes even the wind itself pushing against them.
Yet, the sky remains their limit, and what could give them the lift they need is a strong ecosystem.
Now, what exactly is an ecosystem? Think of it as the perfect storm—where entrepreneurs, investors, mentors, and support networks all work in sync to provide the right conditions for growth.
Without this ecosystem, start-ups can feel like those birds flying solo—great potential but lacking the support to truly soar.
A thriving ecosystem brings the essential ingredients: funding, mentorship, and the right connections to turn great ideas into thriving businesses.
As we charge full speed into 2025, Uganda's start-up ecosystem is like a high-speed train, revved up and ready to break new records.
Fresh innovators are jumping aboard, turning wild ideas into booming businesses, while seasoned entrepreneurs are driving innovation, pushing the limits of what’s possible.
Last year alone, these daring souls collectively secured a cool $19 million—a sharp leap from the $4.8 million raised in 2023. Safe to say, the entrepreneurial engine is purring with excitement.
So, with all that momentum, we’ve pulled together 14 trends we foresee for 2025, divided into five key themes, as guided by the Innovation Village, a local start-up incubation centre.
Sector shifts:
DeepTech will move from concept to application
DeepTech is no longer just a buzzword in Silicon Valley. With the launch of the Uganda DeepTech Centre of Excellence in late 2024 by the Future Lab and its partners, 2025 is thought to be the year when these cutting-edge innovations truly take off.
The expectation is that Agritech solutions (powered by AI), Climate Tech (aimed at combating climate change), and FinTech platforms (designed to boost financial inclusion) will gain serious momentum.
This shift will not only attract global investors but also establish Uganda as a leader in solving Africa's most urgent challenges through technology.
The gig economy will mature
The gig economy in Uganda is about to level up. Platforms like Mavens Talent Network and Flip Africa are leading the way in turning freelancing from a temporary hustle into a robust, structured market.
By tackling challenges like skills development, labour policies, and steady income streams, 2025 is expected to see the gig economy becoming a key part of Uganda's labour market.
Collaborations between platforms, governments, and educational institutions are banked on as key to enabling freelancers to thrive in the digital-first world, with plenty of growth opportunities.
Youth-led innovations will define the narrative
Uganda, with 70 per cent of its population under 30 years of age, is expected to see its young innovators take centre stage in 2025.
From developing solutions to unemployment to creating community-driven initiatives for urgent issues, youth-led start-ups are expected to lead the charge more so with aid from incubation hubs that provide them with programmes, mentorships, and funding tailored to young entrepreneurs.
Africa’s story will be told by Africans
2025 marks a turning point in how Africa’s story is told. For too long, outsiders have had the mic.
Now, Ugandan start-ups are taking control, sharing their challenges and triumphs from an authentic perspective. Platforms like Tech Cabal Insights are paving the way for data-driven, African-led narratives.
This year, Ugandan entrepreneurs are poised to step onto global stages, not as the underdogs, but as equal contributors to the global knowledge economy.
Renewable energy will power new markets
Access to affordable, sustainable energy is still a challenge for rural communities, but 2025 is looked at as one that will flip the script.
Renewable energy, especially solar power, is expected to expand its reach, unlocking new opportunities in sectors like agriculture.
Thanks to discussions with partners like the Worldwide Fund for Nature (WWF) in 2024, the Innovation Village expects start-ups to harness renewable energy to power off-grid operations, providing smallholder farmers with modern tools and market access—helping rural areas flourish sustainably.
Funding:
Investors will double down on impact
Gone are the days when venture capitalists were solely focused on returns. In 2025, many incubation hubs do note that funding will increasingly be tied to impact.
With global shifts in investment priorities—climate change, economic inequalities, and social inclusion now leading the charge—the impact narrative will resonate strongly within Uganda.
“At Innovation Village, we’ve already seen the shift, as impact metrics are now key in evaluating start-ups. Expect more impact funds, blended finance models, and corporate ventures targeting businesses with clear social and environmental value propositions. As Uganda becomes better at communicating its impact, we’ll attract a broader and more diverse range of investors,” it noted in a blog post.
A shrink in the climate and gender lens investing
On the flip side, a shift in policy could lead to a decrease in climate and gender lens investing.
With reduced international climate finance and evolving sustainable investing trends, funding for environmental and gender inclusivity projects might face challenges.
The full impact of global political shifts, including the US President Donald Trump administration’s influence, will unfold over time, but 2025 could see some tightening in this space, testing Uganda’s ability to attract and sustain investments focused on sustainability and inclusivity.
Policy and ecosystem development:
Policy will finally catch up
In 2024, the foundation for overdue regulatory conversations was laid, by most local incubation hubs for start-ups. By 2025, there is an expectation of significant progress.
The Uganda Start-up Act, expected to take shape this year, will clarify critical areas like taxation, intellectual property, and access to capital. Start-ups in regulated sectors, such as FinTech and HealthTech, will benefit the most from this streamlined environment, fostering innovation and reducing the bureaucratic hurdles that have held back growth in the past.
Collaborative ecosystems will outperform isolated efforts
The Innovation Village expects the power of collaboration to shine through in 2025. Whether it's co-developing solutions with entrepreneurs or partnering with organisations like Heifer International to strengthen value chains.
“Innovation hubs, co-working spaces, and accelerators will increasingly become melting pots for cross-sector collaboration, not just supporting start-ups but driving partnerships that create solutions with far-reaching impact,” it does note.
Creative industries:
CreaTech – The intersection of technology and creative industries
In 2025, Uganda’s creative sector is looked at as one that will embrace technology like never before.
Platforms like MoTIV are expected to lead this transformation by equipping creatives with the tools, training, and marketplaces to scale their work.
Expectations are that innovations such as 3D printing for design, augmented reality for storytelling, and NFTs for intellectual property protection, are all helping creatives leverage digital tools to expand their reach.
Global market access for creatives
African creatives are about to take the global stage. With initiatives like the Africa Creatives Alliance, digital platforms, and international collaborations, Uganda’s creatives are expected to position themselves as major contributors to global trends in design, fashion, music, and film.
The export of cultural products will see significant growth, offering Ugandan talent access to a much wider audience.
Sustainability-driven creativity
The creative sector will also tap into sustainability, with artisans and designers prioritising eco-friendly materials and production methods.
This shift aligns with global consumer trends favouring ethical products, giving Ugandan creatives a competitive edge in environmentally conscious markets.
“Expect to see sustainability as a core value in the design and production process,” the Innovation Village notes.
Research to Industry Integration:
Applied research centres as catalysts for commercialisation
The Uganda DeepTech Centre of Excellence and similar initiatives are expected to act as bridges between research institutions and industry players.
“2025 will see a stronger focus on turning research into tangible products and solutions, particularly in AgriTech, mobility, and ClimateTech. Collaboration with hubs... will be key to turning ground-breaking research into real-world applications,” the incubation hub notes.
University-industry partnerships for local solutions
There is an industry expectation of a surge in university-industry partnerships tackling local challenges head-on.
From drought-resistant crops to renewable energy solutions for off-grid communities, these collaborations are looked at as ones that will spark innovations tailored to Uganda's unique needs.
The research-to-industry pipeline will thrive with the support of knowledge-sharing events, funding opportunities, and mentorship programmes, creating an environment ripe for home-grown solutions, the Innovation Village wrote.
