The innovation industry in Uganda has presented a number of challenges that they say need to be tackled at policy level if the country is to become more competitive in ICT and innovation. This comes as the Ministry of Information, Communication, Technology (ICT) and National Guidance and the parliament are engaged in a discussion over the Information and Communications Bill, 2022.
The Bill aimed at addressing gaps and overlaps in the laws governing the communications and media sector in Uganda, if adopted will see some laws harmonized and others repealed. Those affected include the and others who harmonized the Press and Journalists Act Cap. 105, the Stage Plays and Public Entertainment Act Cap. 49 and the Data Protection and Privacy Act 2019.
Innovators and innovation support organizations want a policy that would restructure ICT and Innovation training in response to what they call a skills gap between what is provided at learning institutions and what is demanded by the job market.
Dennis Aguma, Founder of NASE (Association of Student Enterprises) Africa, says for example, that the institutions do not seem to be training for the future, but for the current situation. He says that before the graduates start putting into practice what they have learned, the global industry has moved on.
Recently, governments have come under criticism for introducing taxes on digital services, with some saying it will kill innovation. There is a global view that is pushing for the internet to be a public good yet the cost in Uganda and some other African countries is among the highest in the world, which slows down innovation.
Experts say that countries have the right to tax digital companies, especially multinational ones, but that this should be done in a way that does not affect innovation. Aguma says there is a need to think about giving local innovations tax incentives and other preferential treatment by government agencies to propel the industry to faster growth.
On taxing the innovations, Aguma advises that innovators should comply with the laws because the government must widen the tax base and be able to offer the services that they are demanding. He says as innovators and entrepreneurs, they have the duty to grow the industry so that the tax burden is not concentrated on a few taxpayers.
This comes ahead of the Uganda Innovation Week (UIW), an annual gathering and expo of innovators in the country, due later this month.
The UIW has been rebranded from ‘Kampala Innovation Week’, with the organizers, Startup Uganda, saying that this time the events will be held concurrently in other cities apart from Kampala where it has previously been confined. The event is supported by two United Nations agencies, the UN Capital Development Find (UNCDF) and the International Trade Centre, ITC.
Richard Ndahiro, the UNCDF Technical Advisor in Uganda says despite the policies that the government has put in place on the IT sector, they are not comprehensive, and yet innovation needs to be incorporated into all planning processes. Ndahiro gives an example of the Parish Development Model, saying digital innovation is not part of it.
Aguma also downplayed the effect of supporting foreign-based digital app companies that operate in Uganda, saying the industry is a global industry and where it is based might not matter much.
He says companies are mainly attracted by the availability of talent when deciding where to invest, and that Uganda’s labor market is still highly lacking in skilled people. He however says since the companies offer services and create jobs in the country, there is a benefit even if the firms remain foreign-based.
John Ndabarasa, the Startup Growth Lead at the International Trade Center, says that Uganda’s innovators need to be connected to the financial market and large entrepreneurs. Digital innovations, especially startups find it hard to get financing from ordinary lending institutions like commercial banks because they are never sure of the success of the investment.
The industry, therefore, gets most of the financing from investors and corporations like telecommunications companies that may be interested in the innovations. Ndabarasa says their support is aimed at connecting the innovation fraternity to providers of skills and financing, the two main challenges.
The rebranding of the innovation week is part of ensuring it attracts talent from as many parts of the country as possible.
“The re-brand to UIW represents an active effort to include startup ecosystem stakeholders from across the country in conversations on the future of entrepreneurship in Uganda. The context for such discussions will improve to include factors specific to entrepreneurs in some of the more rural areas, such as internet connectivity, access to infrastructure, and more,” says a statement from Startup Uganda.
UNCDF’s Ndahiro says they want to support the expo to not only advocate for policies in support of innovation but also to connect Ugandans with financiers.
“We are looking to get startup ecosystem stakeholders from all across the country involved in the crucial discussions we will be having at Uganda Innovation Week, and this move towards inclusivity will assist with that agenda,” says Jean K. Makki, Vice Chairperson, Startup Uganda.
Cynthia Kyofuna from Outbox, a lead implementing partner of NSSF Hi-Innovator, said Uganda is billed as one of the most entrepreneurial countries, but that has not helped the country thrive in industrialization, which is one of their focus points now.
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