The Big 4 countries of Nigeria, South Africa, and Egypt still receive the bulk of venture capital and other forms of investment.
The situation seems to be slowly changing as noteworthy startups begin to rise from other countries within the continent, and as investors look for fresh opportunities to spread their risk outside the Big 4.
Uganda is one of the countries that is creating ripples in high-profile tech programs.
SafeBoda was the first startup in Africa to receive investment from the Google fund. The first startup in the country to get into YC (W22) has joined the table of nobility. The opportunity that brings them to the attention of Silicon Valley investors is what makes Numida different.
Being able to engage with people who have successfully built large companies is very relevant to us.
The star has been shining since last year when it first received seed funding. The demand for quick business loans has propelled the growth of the startup, which offers risk-based credit to micro-businesses in Uganda.
The amount of credit extended to small businesses is based on the risk profile of the loanees. The company plans to enter the country later this year.
Funding.
The Ugandan tech scene continues to flourish with new startups emerging in the mobility, e-commerce, e-health, cleantech and fintech spaces pulling all kinds of investors. According to the Partech report, the country was one of the top 15 in Africa that received significant equity funding last year.
In December, Tugende secured $17 million in debt investment after closing a Series A extension round earlier in the year from notable investors like Mobility 54 Investment SAS, a corporate venture capital subsidiary of Toyota Tsusho Corporation. The core product of Tugende is a lease-to-own plan for motorcycle taxis, a popular mode of transport in Uganda. People can get loans to acquire boats, cars, and retail equipment.
Mobility 54 joined DOB Equity and InfraCo Africa to invest $3.4 million in electric motorcycle startup Zembo, which also operates battery charging and swap stations across Uganda's capital, Kampala.
Last year, Ensibuuko raised $1 million in seed funding. The startup was founded by Gerald Otum and helps organizations automate their operations.
Mobility and fintechs are the largest beneficiaries of the funding upsweep. The motorcycle taxi category is a popular mode of transport in the East African country.
It is estimated that there are over 200,000 motorcycle taxis in Uganda's capital, Kampala, where they are used by residents to beat traffic jams. Multi-service apps like Bolt, SafeBoda and others are already active in the motorcycle-ride hailing and delivery market.
The e-commerce industry in Uganda will double in revenue to $421 million by the year 2021, according to a study by the country's ICT department. Some businesses, like SafeBoda, have changed their plans to take advantage of the sector's increase.
Over the last few years, SafeBoda has changed its strategy from a single service provider to an integrated multi-service super-app offering ride-Hailing, online shopping delivery and payment services. The GoTo app is available in Nigeria as well as other markets.
Ricky Rapa Thomson, SafeBoda co-founder and CEO, said in a recent interview that the company is building a global product that is going to go beyond East Africa.
The country's youthful population and a growing smartphone penetration have led to the growth of tens of startups across the continent.
In October last year, mPharma, an e-health scaleup out of Ghana that recently raised $35 million, entered the Ugandan market after taking up a 45% stake in one of the biggest pharmaceutical retailers in the country. Marketforce and Sokowatch are two of the B2B marketplaces that have set up operations in Uganda. Amitruck is one of a dozen others eyeing the market.
Uganda is one country to watch this year as activity is expected to resume across all sectors, thanks to the recent lifting of the world's longest Covid school shutdown.
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