Uganda's technological industry has made its preparations, now seeking returns for its investment
Uganda, a country known for its lush landscapes and diverse wildlife, is making waves in a new domain - technology. With a strategic approach and significant investments in various sectors, Uganda is rapidly evolving its tech industry, positioning itself as a regional innovation hub.
At the heart of Uganda’s push into industrial manufacturing and e-mobility is Kiira Motors, based at the Kiira Vehicle Plant in Jinja. The company boasts an annual production capacity of 10,000 vehicles, supported by a growing ecosystem of 21 component manufacturers. Kiira Motors recently made headlines for signing a letter of intent to supply over 37,000 electric buses to West Africa, a testament to its export ambitions and regional confidence in Ugandan manufacturing.
Simultaneously, Uganda is investing in biotech and pharmaceuticals. The government has launched the Pharmaceutical Industrial Park in Matugga, aiming to boost indigenous manufacturing capacity and reduce reliance on imports. Projects like Dei Biopharma's pharmaceutical park are supported by targeted innovation hubs and increased public funding in science, technology, and innovation (STI).
The Ugandan government is investing over 1% of GDP in STI-related programs, with a focus on biotech, e-mobility, and local manufacturing. This is complemented by the introduction of a 10-year tax exemption for innovative companies, three-year tax breaks for early-stage startups, and co-funding commitments from local capital. Infrastructure investments and streamlined regulations are also key components of the government’s strategy to help tech companies scale.
The government is actively courting both local and international investors. The Uganda Investor Summit (UIS), which brings together public and private stakeholders to showcase national innovation and attract venture capital, is a testament to this effort. Since 2021, STI investments have created over 70,000 high-quality jobs, drawn more than Shs 3.4 trillion in venture capital, and trained nearly 3,000 industrial scientists.
Uganda's tech ambitions are focused on creating a pipeline of high-impact businesses that touch the country’s real economy, including agriculture, energy, public transport, and health. For instance, the Uganda Industrial Research Institute (UIRI) is helping Ugandan hardware engineers prototype diagnostic equipment and lab tools that previously had to be imported. A Kampala-based company is now exporting proprietary IoT sensors to clients in Switzerland, Kenya, and Nigeria.
The government's strategy is deliberately slower, anchored in national industrial policy. This approach is designed to avoid the distortions often seen in tech sectors that are driven by fast money and short timelines. Uganda is refusing to copy its neighbours' playbook and is instead designing an ecosystem that fosters sustainable growth.
In the future, Uganda aims to build a robust foundation for high-tech industries, including semiconductor and electronics manufacturing. While full-scale semiconductor production is not expected overnight, groundwork is being laid to ensure Uganda’s competitiveness in the future high-tech economy.
The long-term vision is to position Uganda as a regional leader in tech innovation. With Kenya facing political and economic challenges, Uganda is positioning itself as a more stable and ambitious player in East Africa’s tech landscape, emphasising industrial ambition and private-public co-creation.
In summary, Uganda’s tech industry, bolstered by state-backed projects and a comprehensive government strategy, is rapidly evolving from theory to practice, with clear plans to scale up innovation and attract the capital needed for sustainable growth.
- Kiira Motors, a Ugandan startup based in Jinja, has an annual production capacity of 10,000 vehicles and is aiming to supply over 37,000 electric buses to West Africa.
- Uganda's government is investing in biotech and pharmaceuticals, with the launch of the Pharmaceutical Industrial Park in Matugga aiming to boost local manufacturing.
- The Ugandan government is investing over 1% of GDP in science, technology, and innovation-related programs, offering tax exemptions and breaks to innovative companies.
- Startups in Uganda are receiving funding from local and international investors, with STI investments creating over 70,000 high-quality jobs since 2021.
- The Uganda Industrial Research Institute is helping Ugandan hardware engineers prototype diagnostic equipment and lab tools, while a Kampala-based company is now exporting IoT sensors to international clients.
- Uganda's tech industry growth is focused on creating high-impact businesses in sectors like agriculture, energy, and healthcare.
- Uganda aims to position itself as a regional leader in tech innovation, with a long-term vision of building a robust foundation for high-tech industries like semiconductor and electronics manufacturing.
