Ugandan startups win $40,000 grant to power digital economy

Six Ugandan startups have been selected for a major growth opportunity under the 10X Digital Startup Accelerator Challenge, earning refundable grants of up to $40,000 (Sh151m) alongside six months of technical support and mentorship.

The initiative implemented by Outbox Uganda, a tech hub, in partnership with United Nations Capital Development Fund (UNCDF) and supported by Mastercard Foundation is designed to accelerate local tech solutions that help Uganda’s micro, small, and medium enterprises (MSMEs) thrive in the digital economy.

Out of 78 applicants, ten local startups pitched at Kampala’s Mestil Hotel for the finals on Tuesday, with six qualifying for the refundable grants.  

These include Everpesa Technologies Limited, Everlend Agritech Ltd, Go Use Tech, Smartfric (U) Ltd, Grouppay (Social Pay) and Greenlife Africa.

Shakila Kerre, the MSME & Fintech financing specialist at United Nations Capital Development Fund (UNCDF), said the selected startups will receive six months of technical assistance and a refundable grant of up to USD 40,000 to help them strengthen, test, and scale their solutions.

“Beyond funding, the selected startups will receive mentorship, strategic partnerships, and connections to mobile network operators, financial institutions, enterprise support organisations, and government initiatives,” she said.

Last year, Outbox Uganda invited startups innovating in key sectors like Agriculture, Trade & Services, Health, Light Manufacturing, Fashion & Design, and the MICE (Meetings, Incentives, Conferences & Events) industry to apply for a chance to receive technical assistance and roll-out or scale their solutions.

Ibrahim Kimbugwe of Smart Fric

According to Richard Zulu, CEO Outbox Uganda the response was good.  He was particularly impressed that locally born start ups are rising to the challenge.

He says that the broader ambition is to bring more young women entrepreneurs into the digital economy and create stronger locally built technology companies capable of scaling across East Africa.

Her said these startups are tackling some of Uganda’s most pressing business challenges like access to finance, digital inclusion, market access, and operational efficiency for small businesses.

“The 10X Program begun with a three-year pilot phase to test and refine the most effective ways to deliver these interventions, aiming to reach 61,000 young women, with 34,000 in direct work during this period.  We want to see more local solutions coming out and being able to scale and attract the kind of financing that we are seeing in the East African region,” he spoke. 

Among the standout innovations, Greenlife Africa was commended for helping rural women acquire smartphones through flexible financing and digital literacy training, enabling greater participation in mobile money, e-commerce, and online trade. 

Meanwhile, Smartfric’s offline-first bookkeeping platform, which is helping small businesses digitise records and build digital credit profiles that can unlock financing opportunities, was commended. 

Despite Africa’s tech sector attracting more than $20 billion in funding over the past decade, Uganda still struggles with limited early-stage investment for homegrown startups.

Much of the available capital continues to flow to foreign-founded ventures operating locally.