PSFU's Mission to Kenya: Benchmarking Best Practices for Uganda's National Startup Policy

On Monday, 7th October 2024 a delegation from the Ministry of Trade, Industry and Cooperatives, the Ministry of Finance, the Ministry of ICT, the Innovation Village, and the Private Sector Foundation Uganda (PSFU) embarked on a diplomatic mission to Nairobi, Kenya. This benchmarking activity aimed to explore Kenya's successful startup landscape and inform the development of Uganda's draft National Startup Policy 2024.

The draft policy has been shaped through consultations with various stakeholders and outlines several agreed-upon interventions. However, areas such as defining startups, regulatory frameworks, financing mechanisms, government incentives, the roles of ecosystem organizations, and the operations of investor tribunals require further dialogue and benchmarking. By examining policies from countries with thriving startup ecosystems, Ugandan policymakers can gain valuable insights into effective strategies and common pitfalls, ultimately tailoring policies to better support entrepreneurship and innovation in Uganda.

During our visit, we engaged with several key organizations to learn best practices:

1. Ugandan High Commission in Kenya: Our delegation held a meeting led by His Excellency Hon. Aryabaha Evans, Charge d'Affaires, and discussed collaboration on startups, investment, and diaspora engagement. The meeting highlighted Kenya's investment in IT and innovation, the role of diplomatic missions in supporting startups, and challenges faced by Ugandan businesses in Kenya. The emphasis on diaspora engagement showcased the potential for cooperation between the two nations to promote startups and drive economic growth.
2. Kenya National Innovation Agency (KeNIA): Our discussions focused on the importance of a strong triple helix model (academia, industry, government) for fostering innovation ecosystems. KeNIA’s success as an ecosystem builder rather than just a funder was evident. Their emphasis on commercialization and youth engagement is essential for nurturing future innovators. The agency’s tracking of startups through innovation challenges provides valuable data for informed decision-making.
3. Kenya Investment Authority (KenInvest): We explored the investment landscape and learned about programs like "Invest Made Easy Clinics" and "Vijana to Invest." Despite challenges in attracting venture capital, KenInvest is committed to supporting startups through alliances with international investors and engaging the diaspora. Their call for an East African association of investment promotion agencies underscores the importance of regional collaboration.
4. Konza Technopolis: This flagship science park and innovation hub, part of Kenya's Vision 2030, fosters collaboration among government, academia, the private sector, and the community. We explored investment opportunities and sustainable practices in this 5,000-acre smart city, which aims to transform Kenya’s knowledge economy and create a vibrant innovation ecosystem.
5. Uganda Diaspora Meeting: At the Uganda High Commission, discussions led by Eng. Dr. Julius Butime focused on aligning the diaspora with the proposed National Startup Policy and the nation’s economic development model. Participants identified key sectors for startup investment, including agriculture, technology, and manufacturing, and emphasized the importance of business development support and infrastructure improvement.
6. Capital Markets Authority of Kenya (CMA Kenya): Our meeting highlighted CMA Kenya's role in supporting local companies and developing capital markets. While they provide a range of services, including regulation and oversight, there is a need for increased public awareness about stock trading services. CMA Kenya has implemented a regulatory sandbox to support startups, addressing challenges such as share price variations and access to funding.
7. iHUB Nairobi: As a leading innovation hub in Africa, iHUB has created 11,000 jobs and attracted $140 million in investment. Their diverse programs focus on transformative practices across sectors such as health, education, and the creative economy. iHUB’s commitment to sustainability and government engagement has fostered a supportive ecosystem for innovation.

Other organizations visited were KEPSA and East African Venture Capital Association

The benchmarking activities in Kenya provided invaluable insights into fostering a robust startup ecosystem in Uganda. By learning from Kenya's experiences, Ugandan policymakers can develop an effective National Startup Policy that supports entrepreneurship and innovation. The collaboration and knowledge-sharing established during this mission will be crucial as we work towards creating an enabling environment for startups in Uganda.

PSFU is also responsible for anchoring the Young Africa Works in Uganda strategy, a responsibility to convene partners, advisory to Government programs, Advocacy, Visibility, introduction of partners to Government programs and to showcase effective approaches to youth employment in Uganda. In relation to this, the Ministry of Trade Industry and Cooperatives in partnership with the PSFU is developing the National Startup Policy 2024 to foster a conducive business environment for Startups To date, the draft National, Startup Policy 2024 has been developed and various stakeholders are being consulted.

Twitter