Inside Uganda’s Startup Scene: Why Business Incubators Need a Boost

By Twin Philemon, Monday 16th June 2025 12:00 hrs EAT.

Uganda’s startup energy is undeniable with young innovators, buzzing hubs, and a growing appetite for entrepreneurship. But behind the excitement, one question keeps popping up.

Innovative office space as visualized by AI

Are our business incubators really doing enough to support startups?

That’s exactly what I set out to explore in my latest research at Makerere University. I looked deep into Uganda’s business incubator ecosystem: how it works, who’s involved, what’s missing, and most importantly, how we can fix it.

What Are Business Incubators?

Think of them as startup gyms, places where early-stage businesses get support to grow stronger. They offer mentorship, training, office space, funding advice, and connections. But in Uganda, many incubators are struggling to deliver on that promise.

The Puzzle Pieces: Who’s Involved?

Uganda’s incubator ecosystem is made up of:

  • Government agencies that set policy and sometimes fund programs.
  • NGOs offering training, mentorship, and advocacy.
  • Private sector players like investors, entrepreneurs, and business owners.
  • Universities and training institutions building knowledge and tech skills.

Sounds solid, right? Not quite.

The Gaps Holding Us Back

Even though all these players exist, they often work in isolation. That means

  • Duplicate efforts (the same startup getting same support from multiple incubators).
  • Underutilized resources (mentors without startups, startups without funding).
  • Red tape that makes starting a business a bureaucratic nightmare.

On top of that, many incubators are underfunded, lack industry-specific expertise, and are concentrated in urban centers leaving rural and semi-urban innovators behind.

What Needs to Change?

Based on interviews with incubators, government officials, NGOs, and startup founders, here’s what we need to fix:

  1. Create a national policy for business incubation This should include tax incentives, funding support, and structured guidelines to help incubators thrive
  2. Decentralize support Support also needs to reach beyond Kampala and Wakiso. Decentralizing incubation services can unlock potential in rural areas that are often left behind.
  3. Invest in infrastructure and mentorship Modern equipment and experienced mentors are game changers.
  4. Encourage public-private partnerships More collaboration = more impact.
  5. Make business registration easier and cheaper High costs and bureaucracy keep many early-stage entrepreneurs from formalizing their businesses
  6. Increase transparency in funding distribution and grant allocations Trust in the system is essential if entrepreneurs are to fully engage with available opportunities.

The Big Picture

If Uganda wants to grow its economy, reduce unemployment, and lead in African innovation, we must strengthen the foundation of entrepreneurship.

Supporting business incubators isn’t just about helping a few startups. It’s about building a resilient, inclusive economy where local ideas can grow into global solutions.

📌 Have thoughts or ideas? Let’s keep the conversation going in the comments. Your insight could help shape the future of Uganda’s startup ecosystem.