Republic of Uganda

Data Collection Survey on ICT

Industry Development and
Enhancement of Startup Ecosystem
in Uganda
Final Report

March 2022

Japan International Cooperation Agency (JICA)

KPMG AZSA LLC

Asia Africa Investment and Consulting Pte. Ltd.

Rakuten Europe S.a.r.l.

E-GATES Ltd. ED
JR
22-075
Table of Contents

Background and Outline of the survey .......................................................... 1

1-1 Background and Purpose of the Survey ............................................................... 1
1-2 Implementation Method ........................................................................................ 2
1-3 Survey Process ....................................................................................................... 3
Overview of ICT Industry in Uganda and Analysis of Challenges .............. 6
2-1 Industrial Overview............................................................................................... 6
2-2 Production and Transaction Volume (Domestic and Overseas) ........................ 29
2-3 Government Agencies, Major Policies, and Policy Positions of the ICT Industry
35
2-4 Skills of Uganda's ICT workforce ....................................................................... 52
2-5 Organizing Uganda's ICT Industry Ecosystem ................................................. 54
2-6 Challenges for the ICT Industry ......................................................................... 56
2-7 Organizing Issues in the ICT Industry .............................................................. 63
2-8 Coding Contest and Follow-up Questionnaire Survey ...................................... 67
Overview of ICT Companies in Uganda and Analysis of their Challenges83
3-1 Distribution of ICT Companies ........................................................................... 83
3-2 Overseas Transactions of ICT Companies .......................................................... 84
3-3 Growth Inhibitor .................................................................................................. 85
Explore Potential Partners in Japan ........................................................... 92
Implementation of Uganda ICT Offshore Pilot Project ............................ 101
5-1 Challenges of ICT Offshore Operations ............................................................ 101
5-2 Preparing for the Uganda ICT Offshore Pilot Project ..................................... 103
5-3 Promotion of the Uganda ICT Offshore Pilot Project ...................................... 105
5-4 Uganda ICT Offshore Pilot Project Implementation Results .......................... 107
Relevance and Contribution of Start-ups to the Ugandan ICT Industry 124
6-1 Overview of ICT Startup Companies................................................................ 124
6-2 Support System for Startup Companies ........................................................... 129
6-3 Analysis of Issues for Tech Startup Companies ............................................... 140
6-4 Socioeconomic Impact of Tech Startups in Uganda/East Africa Region ......... 150
Analysis of Effective Approaches to Acceleration Programs .................... 153
7-1 Review of Past Acceleration Programs and Issues .......................................... 153
7-2 Examination of New Acceleration Program Concept ....................................... 157
7-3 Preparation of Acceleration Program (Pilot project) ........................................ 162
Implementation of the Accelerator Program (Pilot Project) ..................... 175

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 8-1 Programs, Mentorships and Ecosystem support ............................................. 175
8-2 Curriculum and Program Execution ................................................................ 178
8-3 Proof of Concept Planning, Budget, and Execution ......................................... 181
8-4 Networking and Pitching Events ...................................................................... 191
8-5 Overall comments from panelists and judges .................................................. 196
8-6 Lessons learnt .................................................................................................... 198
8-7 Feedbacks/Suggestions from participants Overall comments from panelists and
judges (Future Reference) ............................................................................................... 199
An Analysis of Uganda's Efforts, Current Status, and Challenges toward
Industrial DX 201
9-1 Ugandan Government Policies and Programs ................................................. 201
9-2 Overview of the current status on DX in industry and narrowing down the
target sectors ................................................................................................................... 201
9-3 Organizing the Social Issues on FVC ............................................................... 204
9-4 Organizing DX services to solve social issues and examples of approaches .. 207
9-5 Recommendations for Future DX in Uganda ................................................... 224
9-6 Organizing issues and solutions for DX ........................................................... 232
Examination of measures for promoting ICT industry in Uganda .......... 235
10-1 Reorganization of issues based on the pilot project ......................................... 235
10-2 Hypothesis of industrial development in Uganda ........................................... 241
10-3 Consideration of measures ................................................................................ 250

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List of Tables
Table 1-1 Composition of the Survey Team .................................................................... 2
Table 2-1 Uganda's Industrial Structure ....................................................................... 6
Table 2-2 Uganda's Industrial Structure (% of GDP) .................................................... 6
Table 2-3 Economic Activity by Informal Sector ............................................................ 7
Table 2-4 The certification policy of NITA-U.................................................................. 9
Table 2-5 Firms employing 5 or more engineers found in this survey........................ 10
Table 2-6 Functions of NITA-U ..................................................................................... 11
Table 2-7 ICTAU Main Activities .................................................................................. 14
Table 2-8 ICT-related educational institutions ............................................................ 15
Table 2-9 UICT Diploma in Computer Technology (DCT) ........................................... 18
Table 2-10 UICT Diploma in Information Technology Science (ITS) .......................... 19
Table 2-11 Makerere University BACHELOR OF COMPUTER SCIENCE Curriculum
(3 years)................................................................................................................... 21
Table 2-12 Number of Formal Sector Workers by Industry and Year......................... 24
Table 2-13 Number of workers by industry (ILO statistics)........................................ 24
Table 2-14 Basis for Estimating the Population Using Programming Languages in
Uganda .................................................................................................................... 27
Table 2-15 GDP Contribution by ICT Sector (Comparison with Neighboring Countries)
................................................................................................................................. 30
Table 2-16 Nominal Value Added by Product and Service Type in Uganda ............... 31
Table 2-17 Nominal Domestic Production Value (Value Added) by Sector in the
Information and Communication Industry in Japan ........................................... 32
Table 2-18 ICT Development Index (IDI) for Each Country (FY2017) ....................... 35
Table 2-19 List of Major Ministries in Uganda ............................................................ 35
Table 2-20 Overview of Uganda Vision 2040 and NDP ............................................... 37
Table 2-21 Specific Goals Set Out in Uganda Vision2040 ........................................... 38
Table 2-22 Key Development Opportunities as Defined in NDPIII ............................ 40
Table 2-23 Outcome Objectives Defined in NDPIII ..................................................... 40
Table 2-24 Goals for Solving ICT Industry Constraints as Defined in NDPIII ......... 41
Table 2-25 Digital Transformation Interventions and Respective Actors .................. 41
Table 2-26 Qualifications and Skills Needs for ICT and Digital Technology Program
................................................................................................................................. 44
Table 2-27 Evaluation of universities by HackerEarth, a company that helps recruit
IT engineers in India .............................................................................................. 53
Table 2-28 Overview of Layers ...................................................................................... 55
Table 2-29 Issues Identified in the Interviews ............................................................. 56

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Table 2-30 Issues Faced by ICT Human Resources as Revealed by the Interviews .. 58
Table 2-31 Gender of the Participant ........................................................................... 67
Table 2-32 Educational Level of Participants .............................................................. 68
Table 2-33 Contents of the Test .................................................................................... 69
Table 2-34 Result of the Test ......................................................................................... 70
Table 2-35 Are you able to use the learning and skills you acquired at your last
educational institution in your current work? (Type of institution) .................... 72
Table 2-36 What is your employment status? (Type of employer) .............................. 76
Table 2-37 Which of the following ranges is your current average monthly income?
(Type of employer) .................................................................................................. 77
Table 2-38 Which Internet connection do you use? (by location) ................................ 81
Table 2-39 What best describes your challenges with using the Internet? (by location)
................................................................................................................................. 82
Table 3-1 Fields of Companies Certified by NITA-U ................................................... 83
Table 3-2 Companies Has Experience of Getting Projects from Foreign Companies,
Found in This Survey ............................................................................................. 84
Table 3-3 Occupations of Participants in Programming Contests .............................. 85
Table 3-4 Programming Languages Learned by Participants in Uganda's
Programming Contest ............................................................................................ 87
Table 3-5 Programming Language Skills of Japanese ................................................ 87
Table 3-6 Skills in High Demand in North America .................................................... 90
Table 3-7 Monthly Income of Software Engineers in Uganda..................................... 91
Table 3-8 Monthly Income of Software Engineers in Japan ....................................... 91
Table 4-1 Longlist of Potential Partners .......................................................................... 93
Table 4-2 Interviewed Organizations .............................................................................. 99
Table 4-3 Intentions for industrial exchange and international cooperation in the ICT
industry ................................................................................................................... 99
Table 4-4 Past efforts in ICT industry exchange and international cooperation, and
knowledge gained from these efforts ....................................................................... 99
Table 5-1 Examples of Challenges about Offshore Business in Rwanda E-gates Faced
............................................................................................................................... 101
Table 5-2 Interviewed Companies .............................................................................. 102
Table 5-3 Potential Challenges in Offshore Development ......................................... 102
Table 5-4 Profile of elected engineers ......................................................................... 106
Table 5-5 Profile of elected Ugandan companies ....................................................... 107
Table 5-6 Summary of Japanese companies' reports on business communication and
quality control projects ......................................................................................... 108

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Table 5-7 Summary of Engineer's Report on Business Communication and Quality
Control Projects .................................................................................................... 112
Table 5-8 Summary of Japanese companies' reports on the Business Matching
Demonstration Project ......................................................................................... 116
Table 5-9 Summary of the report by Ugandan ICT companies on the Business
Matching Implementation Study Project ............................................................ 119
Table 5-10 Differences in how companies proceed with pilot projects ...................... 122
Table 5-11 Issues Identified by Pilot Projects ............................................................ 123
Table 6-1 Amount and Number of Investments to Startups in Uganda ................... 126
Table 6-2 Number of ICT-related Startup Investments and Investment Amount by
Sector..................................................................................................................... 127
Table 6-3 Amount of Funds Raised by Representative Startups .............................. 128
Table 7-1 Challenges Map ........................................................................................... 155
Table 7-2 Summary of the number of applications received and the resulting number
of qualified startups ............................................................................................. 167
Table 7-3 Score of Assessment Level 2 ....................................................................... 169
Table 7-4 List of Assessment Level 3 Judges ............................................................. 170
Table 7-5 Level 3 Assessment Results ........................................................................ 171
Table 8-1 Roles and Responsibilities of each Hub during AP .................................... 175
Table 8-2 Due diligence result .................................................................................... 177
Table 8-3 General Curriculum Section 1 .................................................................... 179
Table 8-4 General Curriculum Section 2 .................................................................... 179
Table 8-5 General Curriculum Section 3 .................................................................... 180
Table 8-6 General Curriculum Section 4 .................................................................... 180
Table 8-7 Panelists at the event:................................................................................. 195
Table 10-1 Sources of Growth of ICT Sectors (as a Percentage of Sectoral Output
Growth) 2007-2012 ............................................................................................... 244
Table 10-2 Sources of Growth of ICT Sectors (as a Percentage of Sectoral Output
Growth) 2012-2016 ............................................................................................... 245
Table 10-3 Tunga's assessment of potential offshore destinations (excerpt) ............ 248
Table 10-4 Where Japanese ICT engineers learn their engineering skills .............. 255
Table 10-5 Government subsidies for human resource development in ICT companies
in Japan (subsidies for human resource development) ...................................... 256
Table 10-6 Education and training benefits for individuals ...................................... 257
Table 10-7 Comparison with the leading offshore destination from Japan after China
............................................................................................................................... 259
Table 10-8 Output plan and results of the project ..................................................... 264

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Table 10-9 Examples of ICT industry support measures for Bangladesh ................ 265
Table 10-10 Outline of the ICT Human Resource Development Project Targeting the
Japanese Market .................................................................................................. 265
Table 10-11 Flow of expansion of matching events .................................................... 267
Table 10-12 Reference: 2021 Pakistan ICT Industry Business Matching Event ..... 268
Table 10-13 Comparison of Interest Rates on SME Support Project III Loans and General
SME Loan Interest Rates at Participating Financial Institutions (Reference Value)
............................................................................................................................... 270
Table 10-14 Issues identified in the survey ................................................................ 271
Table 10-15 Direction of JICA's support as summarized in the "Information Collection
and Confirmation Survey on the Establishment of Agricultural Digitalization
Infrastructure in Africa ........................................................................................ 284
Table 10-16 Points highlighted in JICA’s “Information Collection Survey on Needs for
Developing Countries in Establishing Smart Food Chain” ................................ 287

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List of Figures
Figure 1-1 Survey Flow ................................................................................................... 3
Figure 2-1 GDP Composition by Sector (1955-2015) ..................................................... 7
Figure 2-2 Integrated Index of Economic Activity (Composite Index)........................... 8
Figure 2-3 New Capital Investment and Number of Registered Firms in UIA Data .. 8
Figure 2-4 ICTAU Organizational Chart ..................................................................... 13
Figure 2-5 Number of Planned Jobs Created in ICT Sector in UIA Data .................. 27
Figure 2-6 Population Aged 10 years and Older Who Have Used a Computer in the
Past 3 Months (%) .................................................................................................. 28
Figure 2-7 Computer-based Activities in the Past 3 Months (%) ................................ 28
Figure 2-8 ICT Sector Value Added and Share of GDP ............................................... 29
Figure 2-9 Value Added of Major Industries in Japan (Domestic Production Value) 30
Figure 2-10 Value Added by the ICT Sector in OECD Countries ............................... 31
Figure 2-11 ICT Sector Exports .................................................................................... 32
Figure 2-12 Change in Export Ratio (1997,2007,2017) ............................................... 33
Figure 2-13 IDI Index and Ranking Trends in Uganda .............................................. 34
Figure 2-14 Fransman's New ICT Ecosystem .............................................................. 55
Figure 2-15 Ownership of ICT Equipment (%) ............................................................ 60
Figure 2-16 Population Aged 10 Years and Older Who Have Used a Computer in the
Past 3 Months (%) (Repost) .................................................................................... 60
Figure 2-17 Activities Conducted Using Computers in the Past 3 Months (%) (Repost)
................................................................................................................................. 61
Figure 2-18 Problem Tree: Challenges Faced by ICT Companies/Engineers in Uganda
................................................................................................................................. 64
Figure 2-19 Problem Tree: Challenges Faced by ICT Companies/Engineers in Uganda
................................................................................................................................. 65
Figure 2-20 Problem Tree: Issues Related to the Quality of Engineers ..................... 66
Figure 2-21 Age of Participants .................................................................................... 67
Figure 2-22 Participants’ Number of years Working in the ICT Industry ................. 68
Figure 2-23 Employment status of participants .......................................................... 69
Figure 2-24 Gender of Respondents ............................................................................. 71
Figure 2-25 What is your last educational background? ............................................. 71
Figure 2-26 Are you able to use the learning and skills you gained at your last
educational institution in your current job? ......................................................... 72
Figure 2-27 In which jobs do you use the skills you acquired at your last educational
institution? .............................................................................................................. 73
Figure 2-28 Where did you learn coding skills and basic ICT knowledge for your job

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 in the ICT industry? ............................................................................................... 73
Figure 2-29 Have you taken a course or earned a certificate? .................................... 74
Figure 2-30 How would you like to improve your coding skills and ICT knowledge in
the future?............................................................................................................... 74
Figure 2-31 How long have you been working as an ICT engineer? ........................... 75
Figure 2-32 What is your main organization where you have worked the longest? .. 75
Figure 2-33 If you are working as a freelancer, why did you choose to become a
freelancer? ............................................................................................................... 76
Figure 2-34 What is your employment status? ............................................................ 76
Figure 2-35 Which of the following ranges is your current average monthly income?
................................................................................................................................. 77
Figure 2-36 Which of the following best describes the challenges/barriers in terms of
ICT engineers' capabilities? ................................................................................... 78
Figure 2-37 Which of the following best describes why it is difficult for ICT engineers
to improve their skills? ........................................................................................... 78
Figure 2-38 Which of the following best describes the challenges/barriers for ICT
engineers/companies to promote offshore software development projects from
overseas? ................................................................................................................. 79
Figure 2-39 Where do you want to work in the future?............................................... 79
Figure 2-40 Which of the following best describes the reason for your answer to the
previous question ("Where do you want to work in the future?")? Which of the
following best describes the reason for your answer to the previous question
("Where would you like to work in the future?")? ................................................. 80
Figure 2-41 Where do you mainly use the Internet for work? .................................... 80
Figure 2-42 Which Internet connection do you use? .................................................... 81
Figure 2-43 What best describes your challenges with using the Internet? .............. 82
Figure 2-44 Which of the following development cloud services did you use for your
work? ....................................................................................................................... 82
Figure 3-1 Ratio of Years of Experience Among Software Engineers in Japan.......... 86
Figure 3-2 Age of Software Engineers in Japan .......................................................... 86
Figure 3-3 Skills Acquired by New Graduates in Japan ............................................. 88
Figure 3-4 Job Openings in Japan by Programming Language ................................. 89
Figure 3-5 Job Openings in Japan by Programming Language(Fulltime and
Freelancer) .............................................................................................................. 89
Figure 6-1 Number of Newly Registered Companies as Formal Sector ................... 124
Figure 6-2 Venture Capital Investment Amount in Representative African Countries
............................................................................................................................... 125

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Figure 6-3 ICT Policies Based on National Development Plan in Uganda .............. 129
Figure 6-4 Digital Transformation in NDPIII............................................................ 130
Figure 6-5 Major Initiatives on Startups Led by the Government of Uganda ......... 131
Figure 6-6 Overview of NIISP ..................................................................................... 132
Figure 6-7 Number of Startups Supported by NIISP ................................................ 132
Figure 6-8 Number of Startups Commercialized Through NIISP ............................ 133
Figure 6-9 Mapping of Accelerators and Investors .................................................... 134
Figure 6-10 Distribution of Accelerators, Incubators, and Tech Hubs in Africa (Part 1)
............................................................................................................................... 135
Figure 6-11 Distribution of Accelerators, Incubators, and Tech Hubs in Africa (Part 2)
............................................................................................................................... 136
Figure 6-12 Distribution of Accelerators, Incubators, and Tech Hubs in Africa (Part 3)
............................................................................................................................... 137
Figure 6-13 Ecosystem Players Participating in Startup Uganda ........................... 139
Figure 6-14 Uganda's Business Environment ........................................................... 141
Figure 6-15 Mobile Phone Penetration Rate in Africa and the Middle East (per 100
households) ........................................................................................................... 142
Figure 6-16 Smartphone Prices / Affordability .......................................................... 143
Figure 6-17 Fixed-Broadband Prices / Affordability .................................................. 144
Figure 6-18 Data Only Mobile Broadband Prices / Affordability .............................. 145
Figure 6-19 Startup Procedures to Register a business (Number) ........................... 146
Figure 6-20 Time Required to Start a Business (Days) ............................................. 147
Figure 6-21 Cost of Business Startup Procedures (% of GNI Per Capita)................ 148
Figure 6-22 Comparison of Process to Start a Business............................................ 149
Figure 6-23 Major Startups and Social Impact (part 1) ............................................ 151
Figure 6-24 Major Startups and Social Impact (part 2) ............................................ 152
Figure 7-1 Launch Day Event ..................................................................................... 164
Figure 7-2 Article on the Local Newspaper ................................................................ 165
Figure 7-3 Sector Distribution of applications ........................................................... 168
Figure 7-4 Assessment Level 3 Photo ......................................................................... 172
Figure 8-1 Endiro Direct Pilot Webpage .................................................................... 183
Figure 8-2 Web System View MIS Module Linked with Other System Modules
Customer Rollout .................................................................................................. 185
Figure 8-3 Onboarding Kanyabahiha Farmers onto Patasente | Principal Aggregator
Collecting Milk from DFC .................................................................................... 186
Figure 8-4 Motorcycle for the Gulu Regional Marketing Manager........................... 188
Figure 8-5 POS in development .................................................................................. 189

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Figure 8-6 Pilot Data Analysis .................................................................................... 190
Figure 8-7 Pilot Data Analysis .................................................................................... 191
Figure 8-8 Open Day Photo ......................................................................................... 192
Figure 8-9 NINJA Startups participating in the Kampala Innovation Week (KIW)
final day event ...................................................................................................... 194
Figure 8-10 Landing Page of January 12 2022 Pitch Event ..................................... 195
Figure 8-11 Summary of Feedbacks from panelists .................................................. 197
Figure 9-1 Sectoral Share of GDP .............................................................................. 202
Figure 9-2 Issues in each value chain in FVC ........................................................... 206
Figure 9-3 List of DX services at FVC ........................................................................ 212
Figure 9-4 Chaos Map of DX Service Providers of FVCs in Japan ........................... 213
Figure 9-5 Chaos Map of DX Service Providers of FVCs in Uganda ........................ 214
Figure 9-6 Underserved areas of DX services in Uganda ......................................... 216
Figure 9-7 Services that are expected to have needs in the short term ................... 218
Figure 9-8 Summary of unaddressed social issues in Uganda.................................. 220
Figure 9-9 Areas where high ICT skills are required ................................................ 223
Figure 9-10 Examples of service areas that could be targeted by future projects ... 230
Figure 9-11 Growth scenarios for agricultural DX .................................................... 231
Figure 10-1 Issues related to the development of the ICT industry in Uganda Overall
diagram ................................................................................................................. 236
Figure 10-2 Problem tree of issues related to the development of Uganda's ICT
industry (after "few orders from overseas") ........................................................ 237
Figure 10-3 Problem tree of ICT industry development issues in Uganda (after "Low
quality of engineers") ........................................................................................... 238
Figure 10-4 Problem tree of ICT industry development issues in Uganda (after "ICT
infrastructure is not ready") ................................................................................ 239
Figure 10-5 Problem tree of ICT industry development issues in Uganda (after "No
matching opportunities")...................................................................................... 240
Figure 10-6 Vietnam's ICT Industry Development and Government Policies ......... 242
Figure 10-7 JICA's Support Measures for ICT Industry Development in Vietnam 243
Figure 10-8 Estimated population pyramid trends in Vietnam and Uganda .......... 246
Figure 10-9 Comparison of wages for software engineers in African countries ....... 247
Figure 10-10 Image of ICT industry development in Uganda .................................. 249
Figure 10-11 Approaches to Supporting the Development of Uganda's ICT Industry
............................................................................................................................... 250
Figure 10-12 Growth scenarios and growth support measures for the ICT industry
(especially the software industry) in Uganda ..................................................... 252

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Figure 10-13 Proposal of support measures by JICA ................................................ 262
Figure 10-14 Higher Education Support Project (IT Sector)..................................... 263
Figure 10-15 Structure of the Offshore Pilot Projects ............................................... 267
Figure 10-16 Growth scenario on the industry side that uses ICT (mainly assuming
startup) ................................................................................................................. 272
Figure 10-17 Idea on cooperation from JICA to Uganda ........................................... 276
Figure 10-18 Issues and solutions for the shift to DX ............................................... 283
Figure 10-19 Proposed support measures by JICA ................................................... 285
Figure 10-20 Japan's agricultural DX concept........................................................... 288

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Abbreviations and Acronyms

Abbreviations and
Definition
Acronyms
AP Acceleration Program
API Application Programming Interface
ARIPO African Regional Intellectual Property Organization
AWS Amazon Web Service
BDS Business Development Service
BPO Business Process Outsourcing
CEO Chief Executive Officer
CI Composite Index
CNDPF Comprehensive National Development Planning Framework
CRM Customer Relationship Management
DtoC Direct to Consumer
DX Digital Transformation
FVC Food Value Chain
GEM Global Entrepreneurship Monitor
GDP Gross Domestic Product
ICSID International Centre for Settlement of Investment Disputes
ICT Information and Communication Technology
ICTAU ICT Association of Uganda
IDI ICT Development Index
ITeS Information Technology Enabled Services
ITIS The Alliance for Trade in Information Technology and Services
ITU International Telecommunication Union
JICA Japan International Cooperation Agency
JPY Japanese Yen
KIW Kampala Innovation Week
MIS Management Information System
NDP National Development Plan
NINJA Next Innovation with Japan
NITA-U The National Information Technology Authority-Uganda
NPA National Planning Authority
NSSF National Social Security Fund
OECD Organization for Economic Co-operation and Development

xii
Abbreviations and
Definition
Acronyms
PE Private Equity Fund
POC Proof of Concept
POS Point of Sales
PDFU Private Sector Foundation Uganda
SCM Supply Chain Management
SMEs Small and Medium Enterprise
SMS Short Message Service
SU Start-up
TF Taskforce
UCC Uganda Communications Commission
UGX Uganda Shillings
UI User Interface
UIA Uganda Investment Authority
URSB Uganda Registration Services Bureau
UX User Experience
VC Venture Capital
WIPO World Intellectual Property Organization

xiii
 Background and Outline of the survey

(1) Background of the Survey

Uganda's nominal GDP doubled between 2010 and 2019, and is expected to continue to grow at a
high rate of 6% to 7%. On the other hand, this growth may be largely because of population growth, and
it is a challenge to develop industries that can strongly drive the growth of the country's economy, which
relies on agriculture and tourism. Securing employment for the growing population is an urgent issue,
and the high unemployment rate, especially among young people, is becoming a social problem.
Against this background, Third National Development Plan (NDPIII), enacted in June 2020, sets
policy goals of the creation of high added value in each industry and the creation of jobs. As a strategy
to achieve these goals, it emphasizes the promotion of the ICT industry and digital transformation (DX)
in each industry. As a strategy to achieve these goals, ICT industry promotion and DX in each industry
are emphasized.
According to the Global Entrepreneurship Monitor (GEM) report conducted in 2014, Uganda has
35% of the startup entrepreneurial population, including the informal sector. In addition, business
competition organized by JICA for 19 African countries as part of its support for startups with a view to
combating COVID-19, received 460 applications from Uganda, the second highest number among the
participating countries, indicating that a vigorous entrepreneurial spirit is being fostered. These startup
companies, together with small and medium-sized enterprises (SMEs) in the ICT sector, are expected to
become important actors in the foundation of the industry and promote the DX of various industries.
On the other hand, it is said that many of these startup companies are forced to close within two years
after starting up, and strengthening the ecosystem surrounding startups has become an urgent issue. In
this way, as the country is facing a period of transition in its industrial structure from dependence on
agriculture and tourism, and with an eye on the post/with COVID-19 economy and society, the growth
of the ICT industry through the strengthening of the startup ecosystem and the fostering of small and
medium-sized enterprises will contribute to improving the resilience of the economic and social
infrastructure. This will also contribute to improving the resilience of the economic and social
infrastructure.
In addition, Uganda is facing a dearth of job opportunities even for highly educated and fluent
English-speaking ICT engineers in the country. Therefore, it is a challenge to improve their skills and
increase their employment opportunities. It is expected that promoting ICT human resource exchange
between Japan and Uganda and offshore development from Japanese companies to Ugandan companies
contribute to solving the shortage of ICT human resources in rural areas and SMEs in Japan. In addition,
Japanese investment in African startups and promotion of business partnerships should contribute to the
revitalization of the economies of both countries by strengthening the ties between Japanese and
Ugandan companies while meeting the funding demand and business expansion needs of the startup

1
companies.

(2) Purpose of the Survey

The purpose of this study is to conduct a survey, including a pilot project, on approaches to support
the growth of both ICT companies that develop software and startup companies that create new business
models in order to promote the ICT industry in Uganda, and to compile recommendations for JICA's
support program.

(1) Project Implementation Organization

The composition of the survey team is as follows.

Table 1-1 Composition of the Survey Team

Person in charge Responsibilities Company
Shigefumi Chief Operations Officer / ICT
KPMG AZSA LLC
Okumura Industry Promotion
Deputy Chief Operating Officer / Asia Africa Investment and Consulting Pte,
Shigeru Handa
Startup Ecosystem Ltd.
Asia Africa Investment and Consulting Pte,
Jun Shiomitsu Acceleration 1 / Startup Support 1 Ltd. (Reinforcement) (African Business
Institute / Idiology International)
Shotaro Yamanaka Acceleration 2 / Startup Support 2 Rakuten Europe S. a. r. l.
Christoffer Eun. Asia Africa Investment and Consulting Pte,
Acceleration 3 / Startup Investment
(Changed) Ltd.
Ayako Kasai ICT Human Resource Development 1 E-Gates Ltd.
Asia Africa Investment and Consulting Pte,
Shohei Namba Business Matching 1
Ltd.
Stejic Zoran ICT Human Resource Development 2 Rakuten Europe S. a. r. l.
ICT Human Resource Development 3
Masaaki Hamada KPMG AZSA LLC
/ ICT Industry Analysis 1
E-Gates Ltd. (Reinforcement)
Yuuga Kasai ICT Industry Analysis 2
(Africa Accounting Advisory)
Aya Tei Business Matching 2 KPMG AZSA LLC
Mamoru Shimizu offshore development E-Gates Ltd.

2
(1) Flow of the Survey
The outline of this survey is shown in the flowchart below.
2021 2022
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb May

(1) Analysis on ICT Identif

industry in Uganda ication
(2) Survey on the Literature Survey and Field survey of Continued survey & analysis
start-up ecosystem challe
in Uganda nges
(3) Data collection
and analysis on DX Literature Survey and Field survey
in Uganda

(4) Identification of Identification of Identification of Japanese governments,

industrial groups, companies, etc.
Japanese companies Japanese
interested in governments, Discussion of cooperation method,
collaboration with industrial groups, investigation / examination of needs /
Ugandan companies. companies, etc. implementation method of ICT personnel
exchange

Survey on Ugandan ICT

(5) Development of Engineers for Business
Communication and
program supporting Quality Control Pilot
ICT companies and sum Wor
Business
Preparation Demonstration project mariz ksh
implementation of
demonstration
Survey on Ugandan ICT e op
companies for business
project matching demonstration
survey business

Recruitment & Pitch Analysis of result

(6) Development of Design Preparation Implementation of AP
vetting contest and Follow up
program supporting
start-ups and Preparation of
implementation of Pitch
pitch event in
demonstration event
Japan
project in
Promotion Japan

(7) Proposing a draft

idea on JICA's program
Developing JICA support
supporting Ugandan program
ICT industry
Final report
(8) Organizing a final
reporting meeting in Uganda

Figure 1-1 Survey Flow

3
(2) Contents of the Survey
The contents of the survey are as follows.
(a) ICT Industry Analysis in Uganda (CHAPTER 2) (CHAPTER 3)
The survey team conducted an analysis of the current state of the ICT industry in Uganda. The analysis
included government policies, analysis of ICT companies (number of companies, size,
domestic/overseas orders, ICT human resource capacity, human resource availability, growth rate of
companies, etc.), analysis of ICT human resource development institutions’ (universities, vocational
training schools, private organizations) scales and level of development, etc., and the services of
Business Development Service (BDS) institutions that provide management support to companies.

(b) Collection and Analysis of Information Related to Startup Ecosystems (CHAPTER 6)

The survey team analyzed the ecosystem surrounding startup companies that are creating new ICT-
based businesses in Uganda. In addition to understanding the government related policies, the survey
team identified the institutions that provide incubation programs to support business startups and
acceleration programs to support growth, as well as the content of these programs.
Moreover, the survey team assessed the current status of startup investment from Japan and abroad.

(c) Collect and Analyze Information on Digital Transformation (CHAPTER 9)

The survey team corrected, analyzed the information on the DX situation in Uganda by using existing
data and other sources.

(d) Consideration of a System for Collaboration in Japan (CHAPTER 4)

In considering the promotion of collaboration between Ugandan and Japanese companies, the survey
team identified local governments, industrial organizations, and companies in Japan that are interested
in business collaboration with developing countries including Uganda, and conducted surveys and
discussions on collaboration methods, ICT human resource exchange demands, and implementation
methods.

(e) Study of the Draft ICT Enterprise Support Program and Implementation of Pilot Projects
(CHAPTER 5)
While identifying various issues caused by increasing orders from foreign companies to ICT
companies in Uganda, the survey team implemented pilot projects to solve the issues. The survey team
listed and selected Japanese candidate companies with potential of collaboration and discussed with
them during the in-country survey.

(f) Consideration of a Startup Company Support Program (draft) and Implementation of a Pilot

4
Project (CHAPTER 7) (CHAPTER 8)
The survey team organized a three-month acceleration program for five companies to accelerate the
growth of startup companies that create new business models using ICT (hereinafter referred to as "tech
start-ups").

(g) Study and Prepare a Draft of JICA's Support Program for ICT Industry Support (CHAPTER
10)
Based on the contents of the above-mentioned study, the survey team drafted JICA's support program
for ICT industry, focusing on ICT sector company development and start-up, and finalize the result
based on the comments from JICA Economic Development Department and Uganda Office.

(h) Final Reporting to stakeholders in Uganda

The survey team conducted presentation on the results of the survey to JICA offices, government
agencies, human resource development organizations, and participating companies in Uganda.

5
 Overview of ICT Industry in Uganda and Analysis of
Challenges

(1) Industrial Structure

First, the overall industrial structure of Uganda, including the ICT sector, as shown in the table below.
Although there is an impression that Uganda's industry is mainly agriculture sector, the services sector
is larger than agriculture sector as a percentage of GDP.

Table 2-1 Uganda's Industrial Structure

ISIC 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

GDP at market prices 48,287 53,885 64,482 69,525 74,602 82,416 91,189 100,117 108,518 120,431 131,406 138,841
Agriculture, forestry and fishing A 16,516 17,480 18,584 18,806 19,513 20,580 21,556 22,785 25,457 27,993 30,291 33,361
Cash crops AA 1,904 1,420 1,418 1,696 1,694 1,682 1,820 2,120 2,552 2,708 2,610 2,720
Food crops AB 9,142 10,098 10,537 10,253 10,194 10,797 11,276 11,563 13,395 14,987 15,211 16,171
Livestock AC 2,097 2,197 2,300 2,409 2,530 2,671 2,830 2,989 3,309 3,872 4,488 5,265
Agriculture Support Services AD 12 13 14 10 12 12 17 15 16 17 18 19
Forestry AF 1,837 2,045 2,505 2,571 3,178 3,406 3,520 3,862 4,003 4,524 4,967 5,610
Fishing AG 1,920 2,015 1,987 2,037 1,896 1,976 2,035 2,235 2,182 1,887 2,998 3,576
Industry 11,478 13,355 16,543 17,570 18,331 20,729 24,068 26,310 28,248 31,388 34,560 36,342
Mining & quarrying B 254 297 497 444 550 614 856 1,081 1,337 1,354 1,699 1,716
Manufacturing C 9,737 10,637 12,360 13,036 12,399 12,940 16,126 16,319 16,845 18,970 20,394 22,066
Electricity D 435 581 700 807 975 1,012 1,130 1,222 1,379 1,546 1,742 1,818
Water E 997 1,120 1,261 1,421 1,605 1,814 2,043 2,308 2,578 2,888 2,985 3,119
Construction F 1,809 2,296 3,028 3,270 3,551 4,497 4,673 5,380 6,109 6,630 7,739 7,623
Services 18,684 21,408 26,713 28,920 32,148 35,727 39,244 44,245 47,182 52,405 56,733 59,719
Trade and Repairs G 6,384 6,583 7,891 8,013 8,460 8,150 8,673 9,287 9,832 10,739 11,256 11,960
Transportation and Storage H 1,255 1,481 1,776 2,062 2,268 2,551 2,897 3,389 3,621 4,113 4,525 4,818
Accommodation and Food Service I 948 1,266 1,445 1,726 1,906 2,255 2,235 2,498 3,212 3,665 3,710 3,605
Information and Communication J 327 482 707 993 1,382 1,811 1,748 2,275 2,130 2,452 2,649 2,080
Financial and Insurance Activities K 862 877 1,175 1,153 1,347 1,870 2,300 2,763 2,871 3,036 3,455 3,838
Real Estate Activities L 3,073 3,371 3,573 3,897 4,277 4,831 5,480 6,168 6,515 7,380 8,222 8,864
Professional, Scientific and Technical M 1,556 1,928 2,776 2,377 2,399 2,440 2,174 2,160 2,330 2,579 2,698 2,956
Administrative and Support Service N 748 1,012 1,756 1,633 1,284 1,498 2,359 1,751 1,901 1,989 2,361 2,582
Public Administration O 736 927 1,274 1,175 1,178 1,192 1,837 2,159 2,678 3,049 3,254 3,864
Education P 1,983 2,089 2,553 2,953 3,454 3,766 4,167 4,846 4,777 5,284 5,830 5,784
Human Health and Social Work Q 1,661 1,847 2,018 2,215 2,399 2,656 2,953 3,156 3,310 3,995 4,334 4,545
Arts, Entertainment and Recreation R 68 84 93 108 102 116 129 116 131 205 244 256
Other Service Activities S 1,123 1,234 1,307 1,514 1,673 2,050 2,387 2,849 2,984 2,969 3,184 3,504
Activities of Households as Employers T 569 617 649 672 700 734 776 829 891 951 1,011 1,062

Taxes on products 2,689 2,760 3,456 4,598 4,659 5,379 6,495 6,778 7,631 8,645 9,822 9,418

Source: Uganda Bureau of Statistics "AGDP 2019/20, June 2020 - Last Updated on 11th October 2020"

Table 2-2 Uganda's Industrial Structure (% of GDP)

ISIC 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

GDP at purchaser prices 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Agriculture, forestry and fishing A 34.2 32.4 28.8 27.0 26.2 25.0 23.6 22.8 23.5 23.2 23.1 24.0
Cash crops AA 3.9 2.6 2.2 2.4 2.3 2.0 2.0 2.1 2.4 2.2 2.0 2.0
Food crops AB 18.9 18.7 16.3 14.7 13.7 13.1 12.4 11.5 12.3 12.4 11.6 11.6
Livestock AC 4.3 4.1 3.6 3.5 3.4 3.2 3.1 3.0 3.0 3.2 3.4 3.8
Agriculture Support Services AD 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Forestry AF 3.8 3.8 3.9 3.7 4.3 4.1 3.9 3.9 3.7 3.8 3.8 4.0
Fishing AG 4.0 3.7 3.1 2.9 2.5 2.4 2.2 2.2 2.0 1.6 2.3 2.6
Industry 23.8 24.8 25.7 25.3 24.6 25.2 26.4 26.3 26.0 26.1 26.3 26.2
Mining & quarrying B 0.5 0.6 0.8 0.6 0.7 0.7 0.9 1.1 1.2 1.1 1.3 1.2
Manufacturing C 20.2 19.7 19.2 18.8 16.6 15.7 17.7 16.3 15.5 15.8 15.5 15.9
Electricity D 0.9 1.1 1.1 1.2 1.3 1.2 1.2 1.2 1.3 1.3 1.3 1.3
Water E 2.1 2.1 2.0 2.0 2.2 2.2 2.2 2.3 2.4 2.4 2.3 2.2
Construction F 3.7 4.3 4.7 4.7 4.8 5.5 5.1 5.4 5.6 5.5 5.9 5.5
Services 38.7 39.7 41.4 41.6 43.1 43.4 43.0 44.2 43.5 43.5 43.2 43.0
Trade and Repairs G 13.2 12.2 12.2 11.5 11.3 9.9 9.5 9.3 9.1 8.9 8.6 8.6
Transportation and Storage H 2.6 2.7 2.8 3.0 3.0 3.1 3.2 3.4 3.3 3.4 3.4 3.5
Accommodation and Food Service I 2.0 2.4 2.2 2.5 2.6 2.7 2.5 2.5 3.0 3.0 2.8 2.6
Information and Communication J 0.7 0.9 1.1 1.4 1.9 2.2 1.9 2.3 2.0 2.0 2.0 1.5
Financial and Insurance Activities K 1.8 1.6 1.8 1.7 1.8 2.3 2.5 2.8 2.6 2.5 2.6 2.8
Real Estate Activities L 6.4 6.3 5.5 5.6 5.7 5.9 6.0 6.2 6.0 6.1 6.3 6.4
Professional, Scientific and Technical M 3.2 3.6 4.3 3.4 3.2 3.0 2.4 2.2 2.1 2.1 2.1 2.1
Administrative and Support Service N 1.5 1.9 2.7 2.3 1.7 1.8 2.6 1.7 1.8 1.7 1.8 1.9
Public Administration O 1.5 1.7 2.0 1.7 1.6 1.4 2.0 2.2 2.5 2.5 2.5 2.8
Education P 4.1 3.9 4.0 4.2 4.6 4.6 4.6 4.8 4.4 4.4 4.4 4.2
Human Health and Social Work Q 3.4 3.4 3.1 3.2 3.2 3.2 3.2 3.2 3.0 3.3 3.3 3.3
Arts, Entertainment and Recreation R 0.1 0.2 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2
Other Service Activities S 2.3 2.3 2.0 2.2 2.2 2.5 2.6 2.8 2.7 2.5 2.4 2.5
Activities of Households as Employers T 1.2 1.1 1.0 1.0 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8

Taxes on products 5.6 5.1 5.4 6.6 6.2 6.5 7.1 6.8 7.0 7.2 7.5 6.8

Source: Uganda Bureau of Statistics "AGDP 2019/20, June 2020 - Last Updated on 11th October 2020"

6
 In the case of agriculture, there is a large informal sector, but the GDP of the information and
communication sector is all produced by the formal sector.

Figure 2-1 GDP Composition by Sector (1955-2015)

Source: Center for Development Alternatives, "Industrial Policy for Economic Transformation in Uganda, June 2020"

Table 2-3 Economic Activity by Informal Sector

ISIC 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Total Informal sectore GDP at market pric 30,699 33,535 37,415 38,985 40,919 43,356 47,605 50,560 55,472 61,768 67,469 74,280
Agriculture, forestry and fishing 17,027 17,857 18,531 18,744 18,834 19,776 20,725 21,648 24,243 26,613 28,755 31,606
Cash crops AA 1,917 1,422 1,419 1,706 1,687 1,689 1,782 1,896 2,298 2,466 2,384 2,492
Food crops AB 9,142 10,098 10,537 10,253 10,194 10,797 11,276 11,563 13,395 14,987 15,211 16,171
Livestock AC 2,097 2,197 2,300 2,409 2,530 2,671 2,830 2,989 3,309 3,872 4,488 5,265
Agriculture Support Services AD - - - - - - - - - - - -
Forestry AF 2,349 2,406 2,521 2,609 2,721 2,787 2,980 2,964 3,059 3,402 3,675 4,103
Fishing AG 1,920 2,015 1,987 2,037 1,896 1,976 2,035 2,235 2,182 1,887 2,998 3,576
Industry 4,718 5,321 6,945 7,807 8,349 9,030 11,043 12,098 12,571 14,126 15,887 17,848
Mining & quarrying B 132 151 268 232 288 317 412 562 767 646 1,016 1,054
Manufacturing C 3,990 4,577 5,470 6,862 6,802 6,608 8,831 8,165 8,069 9,334 10,452 12,259
Electricity D - - - - - - - - - - - -
Water E 864 976 1,101 1,242 1,401 1,581 1,784 2,014 2,226 2,503 2,575 2,692
Construction F 482 519 743 838 863 1,064 1,157 1,357 1,509 1,643 1,844 1,844
Services 9,028 9,886 11,351 12,116 13,305 14,067 15,530 16,814 18,658 21,029 22,827 24,827
Trade and Repairs G 3,376 3,490 4,150 4,110 4,399 4,116 4,343 4,271 4,655 4,967 4,988 5,578
Transportation and Storage H 685 843 1,015 1,225 1,427 1,698 1,947 2,213 2,402 2,802 3,089 3,384
Accommodation and Food Service I 619 778 930 1,095 1,266 1,512 1,688 1,973 2,543 2,901 2,942 2,875
Information and Communication J - - - - - - - - - - - -
Financial and Insurance Activities K - - - - - - - - - - - -
Real Estate Activities L 1,262 1,362 1,473 1,612 1,795 2,027 2,292 2,593 2,686 3,335 3,960 4,391
Professional, Scientific and Technical M 43 190 221 352 285 279 299 167 316 425 608 697
Administrative and Support Service N 163 288 589 515 434 297 405 332 372 485 584 644
Public Administration O - - - - - - - - - - - -
Education P - - - - - - - - - - - -
Human Health and Social Work Q 604 689 785 895 1,020 1,162 1,325 1,510 1,714 2,031 2,261 2,483
Arts, Entertainment and Recreation R 176 195 106 137 92 76 75 104 124 192 230 247
Other Service Activities S 1,171 1,311 1,396 1,555 1,715 2,007 2,316 2,821 2,955 2,941 3,153 3,467
Activities of Households as Employers T 569 617 649 672 700 734 776 829 891 951 1,011 1,062

Source: Uganda Bureau of Statistics "AGDP 2019/20, June 2020 - Last Updated on 11th October 2020"

As shown in the graph in the next page, the Ugandan economy has been on an expansionary trend in
recent years when measured by the Composite Index (CI) and its rate of change, which can quantify the
magnitude of economic trends. However, there was a significant drop in the second quarter of 2020.
This is likely due to the lockdown caused by COVID-19, while a significant recovery was seen in Q3
2020.

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 Figure 2-2 Integrated Index of Economic Activity (Composite Index)
Source: Bank of Uganda

(2) Major Companies

According to Uganda Investment Authority data, the number of companies registered for licenses to
implement ICT projects/services in FY 2019/20 was 10. The number of newly registered1 companies
has remained within 10 every year (the cumulative number of registered companies is unknown). The
ITCO (IT certification office) of NITA-U implements a certification system for ICT companies under
the management and supervision of NITA-U, and publishes information on certified companies on its
website. As of March 2021, the number of NITA-U certified companies was 437.

Figure 2-3 New Capital Investment and Number of Registered Firms in UIA Data
Source: NITA-U STATISTICAL ABSTRACT 2020

1 Domestic companies have a minimum investment of $ 50,000 and foreign companies have a minimum investment of

$ 250,000. The examination will be conducted based on the registration status and tax payment number submitted by the
company, the outline of the project, the location of the project, a copy of the passport and national ID, etc.

8
 The certification policy of NITA-U is as follows

Table 2-4 The certification policy of NITA-U

I. To be able to propose or provide IT services or products in Uganda, it shall be mandatory for the

Proposer/Provider to obtain Certification in their areas of operation from the NITA-U. This shall apply to IT

Service/ Product Providers both from within Uganda and overseas.

II. To promote local competencies and to develop IT skills in Uganda, it is mandated that all overseas IT

Service Providers, wanting to provide IT Services in Uganda, henceforth either set-up their subsidiaries in

Uganda or associate with local partner/s through Joint venture or Partnership arrangement. The subsidiary

or the Joint venture or Partnership Company, thus formed, shall obtain relevant Certification from the NITA-

U to propose or operate IT services in Uganda.

III. It is also mandated by the Govt. of Uganda that all Government procurement of IT Products and services

shall hereafter be from NITA-U Certified IT Service Providers only.

IV. Considering the present state of the IT Service industry in the country and the need to provide entities time

to get into the Certification process, NITA-U shall issue Conformity Certificates at Levels 1, 2, 3 to those IT

Service Providers that meet the defined eligibility criteria for these levels.

The Level 1 and Level 2 certified entities are encouraged to build Competency and Capacity through

resources and procedures for establishing a Management system that conforms to the requirements of an

applicable ISO standard.

The criterion for grant of Conformity Certificate Level 3 is compliance to the requirements of applicable and

specified international standards. An applicant seeking Level 3 conformity would need to fulfill the

requirements of the applicable standard/s against which certification is sought. The object of certification

shall, thereby, have to demonstrate compliance to the minimum requirements specified in the standards.

V. IT Training Institutions / Providers conducting training in Computing and Information technology shall also

get themselves certified from NITA-U.

VI. Individuals possessing formal qualification/ experience in Information Technology and wishing to contribute

towards Ugandan IT Industry shall get themselves certified by NITA-U as certified Individual IT Service

Providers if they wish to be given preference in recruitment for job openings in the Government sector in

Uganda.

VII. IT Product Conformity Certificates shall be only issued to the manufacturers, authorized dealer/resellers or

assemblers of the product, which comply with the certification requirements. However, traders / agents of

the manufacturers, authorized resellers or assemblers of the product will also be allowed to utilize the

Conformity Certificates issued to the manufacturers, authorized dealer/resellers or assembler of the

product.

Source: NITA-U website (https://itco.nita.go.ug/certification_home/)

9
 In Uganda, there is still no local representative ICT company, although MTN Uganda exists in terms
of telecommunications sector. The companies found in this survey that employ more than five engineers
are as follows. In this survey, we conducted a desktop search to list companies that have announced on
their website that they are conduction software contracted development, and that are conducting contract
development as one of their main services. Furthermore, in order to narrow down to companies that
continue to hire engineers in a stable manner to some extent, we focused on companies that employ five
or more engineers. The number of companies outsourced software development is on the rise, and it is
expected that some new companies will grow in the future. Currently, there are very few companies that
come to the top of the internet search result, and there is a possibility that some companies are missing
from our internet search. It can be said that updating the overall information on how active ICT
companies are in Uganda and strengthening visibility are issues that both the Ugandan government and
companies should tackle.

Table 2-5 Firms employing 5 or more engineers found in this survey

Company Number of Main Business Activities
Engineers
Service Cops 14 Software contracted development, BPO, and
School Pay operations
Acerat Limited 14 Software contracted development
Kanzu code 8 Software contracted development
N Micros 6 Software contracted development
SHOPTO 6 Management of delivery application services
Jentory Uganda 5 Software contracted development (as of 2018)
Lmited
* Other companies that are engaged in software contracted development with 4 or less engineers include New Wave
Technologies Limited (4 engineers), ThinVoid (4 engineers), and Hostalite Ltd (2 engineers).
Source: Field survey by the research team

(3) Major Industry Associations

○The National Information Technology Authority-Uganda
The National Information Technology Authority-Uganda (NITA-U) is an agency established under
the NITA-U Act of 2009, which is under the supervision of the Ministry of Information, Communication,
Technology and National Guidance (hereafter Ministry of ICT). It is not an industry association, but a
governmental organization that provides a variety of services related to ICT in the country. The service
portfolio offered by NITA-U includes data center services, e-government services, IT support services
(The NITA Service Desk), Internet infrastructure (The National Data Transmission Backbone
Infrastructure, MYUGWiFi), and regulatory and compliance services.
・ Data Center Services: The National Data center is a national data center established by the

10
 Ugandan government to centralize the government's data centers and minimize the cost of
building data centers for each ministry and agency. NITA-U provides data center services that
include PAAS (Platform As A Service), IAAS (Infrastructure As A Service), and SAAS
(Software As A Service).
・ E-government services: NITA-U develops websites according to "National Guidelines for
Website Development and Management(http://www.nita.go.ug/publication/guidelines-
development-and-management-government-websites)". For example, 30 percent of the websites
of ministries and agencies and 45 percent of the websites of local governments have been
developed by NITA-U.
・ IT support services: A single point of contact has been established for the provision of e-
government services to all ministries, agencies, and local governments to help streamline and
improve the efficiency of their operations.
・ Internet infrastructure: WiFi hotspots have been set up to provide free wireless Internet and
access to e-government services from 6 p.m. to 6 a.m. weekdays and 3 p.m. Saturdays to 6 a.m.
Mondays.
・ Regulation and Compliance: NITA-U operates IT Certification (https://itco.nita.go.ug/), which
evaluates, verifies, and certifies that companies/individuals providing information technology
products or services meet minimum requirements and standards. This certification includes IT
service and product providers, online service providers, IT personal consultants, and IT training
institutions.

Table 2-6 Functions of NITA-U

1. To provide first level technical support and advice for critical Government information
technology systems including managing the utilization of the resources and infrastructure
for centralized data center facilities for large systems through the provision of specialized
technical skills;
2. To identify and advise Government on all matters of information technology development,
utilization, usability, accessibility and deployment including networking, systems
development, information technology security, training and support;
3. To co-ordinate, supervise and monitor the utilization of information technology in the
public and private sectors;
4. To regulate and enforce standards for information technology hardware and software
equipment procurement in all Government Ministries, departments, agencies and
parastatals;
5. To create and manage the national databank, its inputs and outputs;
6. To set, monitor and regulate standards for information technology planning, acquisition,
implementation, delivery, support, organization, sustenance, disposal, risk management,

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 data protection, security and contingency planning;
7. To regulate the electronic signature infrastructure and other related matters as used in
electronic transactions in Uganda;
8. To promote and provide technical guidance for the establishment of e-Government, e-
Commerce and other e-Transactions in Uganda;
9. In liaison with other relevant institutions, to regulate the information technology
profession in Uganda in order to ensure its effective utilization promotion and
development;
10. To act as an authentication center for information technology training in Uganda in
conjunction with the Ministry responsible for Education;
11. To provide advice on information technology project management services to
Government.
12. To provide for information management service through acting as a records management
facility and an information depository;
13. To provide guidance on the establishment of an infrastructure for information sharing by
Government and related stakeholders;
14. To provide guidance in information technology audit services to Government.
15. To undertake and commission research as may be necessary to promote the objects of the
Authority;
16. To arbitrate disputes arising between suppliers of information technology solutions and
consumers;
17. To protect and promote the interests of consumers or users of information technology
services or solutions;
18. To undertake any other activity necessary for the implementation of the objects of the
Authority.
Source: NITA-U website

(https://www.nita.go.ug/nita/nita-u-establishment#functions)

The main activities of NITA-U in 2021 are as follows.

・ Cyber security awareness activities and cyber crime control activities
・ Set up a help desk for E-Government users
・ Issuance of IT Certification to companies that comply with IT laws and regulations
・ Project implementation, event implementation, sponsorship, etc. with each donor
Source: NITA-U website (https://www.nita.go.ug/blogs-list?page=0)

○Uganda ICT Association

The ICT Association of Uganda (ICTAU) is an ICT association established in 2012. The following

12
companies and persons are eligible to join the association. The association has 400 companies or
individuals on its CRM system and 670 companies or individuals on its mailing list. ICTAU is a multi-
stakeholder initiative that brings together key ICT-related private sector organizations, companies and
stakeholders in a single body to contribute to the development of technology in Uganda. It aims to
conduct research, guidance, and advocacy for projects and policies2.

1. Students from higher education institutions doing research in the field of ICT
2. Adults (18 years and older) who provide ICT or IT-enabled services (ITeS) or trade in the ICT
industry.
3. An entity in the ICT sector, or an entity that provides IT-enabled services (ITeS), or an entity
with like-minded objectives
4. Academia and scholars of information and communication technology

Figure 2-4 ICTAU Organizational Chart

Source: ICTAU Organizational Chart

According to the ICTAU articles of incorporation, ICTAU is to carry out the following activities.

2
https://techjaja.com/michael-niyitegeka-bounces-back-to-the-ictau-board/

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 Table 2-7 ICTAU Main Activities
A. Education
・ Promote computer literacy throughout Uganda.
・ Promote research, science, and adaptation of information and communication technologies.
・ Create a market for ICT jobs by encouraging research in ICT regardless of age, gender, or
race.

B. Standard
・ To support the empowerment, development, and enhancement of a dynamic and vibrant
society through the use and strategic application of information systems.
・ Facilitate the formulation of effective policies on information and communication technologies
and related matters.
・ Maintain an international level of quality in IT services and products through IT codes of
practice.

C. Representation
・ Create and develop an ICT brand and make it world famous.
・ Increase business opportunities for participants by establishing sustainable contacts with
government departments and authorities, national companies, relevant industry organizations,
and other appropriate regional and international organizations.
・ To increase the visibility of our members internationally through reciprocal agreements with
ICT-related groups and institutions, and full participation in networking events.

D. Cooperation
・ Provide a forum for the exchange of ideas among information technology professionals.
・ Promote the growth and development of the ICT community through education, business
clustering, partnerships, and mentoring.

E. Public Outreach
・ Raise public awareness by promoting the contribution of information technology to Uganda's
development through membership mobilization and industry-related events.
・ To expand the knowledge and understanding of information and communication technologies
in the community.

F. Contingent and behavioral actions

・ We will do everything related to achieving the above objectives.
Source: ICTAU Articles of Incorporation

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 The main activities of ICTAU in 2021 are as follows.
・ Attend at a joint event with HIVE at ICT Expo
・ Organized Webinar
・ Board member election
・ Information dissemination via Facebook, Twitter, etc.
Source: ICTAU Facebook (https://www.facebook.com/ictau/)

○Private Sector Foundation Uganda (PSFU)

It was established in 1995 as an organization to support private companies in Uganda in order to
promote economic development and strengthen international competitiveness. It acts as a bridge for
technical and financial support from the government and international organizations (World Bank, etc.),
and some of the projects it supports include the creation of business opportunities through rural
electrification. There are 245 member companies3.

(4) ICT-related educational institutions

The following is a summary of Uganda's major ICT-related education and training
institutions from the graduated universities of the participants in the programming
contest for Uganda ICT engineers, which will be described later.

Table 2-8 ICT-related educational institutions

Contents and achievements of ICT-related education
Organization Overview Source
and training
Uganda Institute ・ A research institute established in ・ Academic Programs https://ww
of Information 2000 and the only government ・ Department of Management w.uict.ac.ug
and agency specializing in middle-level ・ Department of ICT /about-uict/
Communications ICT training. ・ Department of Engineering
Technology ・ The research institute offers ・ CERTIFICATE PROGRAM
practical ICT training at the ・ Certificate in Information and Communication
certificate and diploma level as an Technology
alternative to theory-based degrees ・ Certificate in Electrical and Electronics
offered by universities and other ・ National Certificate in Electronics Technology
higher education institutions.
・ National Certificate in Electrical Installation
・ Short Courses
Equipment used in the school: hp desktop,
HDD500GB, RAM4GB, intel corei5 10th
Generation, Windos10 pro / home (students are
free to bring their laptops)
Refer to the description after this table for the
current status of human resources development in
UICT.
Makerere ・ Top-ranked public universities in ・ College of Computing and Information Sciences https://cis.
University Uganda and East Africa, founded (CoCIS), mak.ac.ug/
as a technical school in 1922 ・ School of Computing and Informatics Technology
・ Producing many celebrities and (CIT)
excellent human resources such as ・ The Department of Computer Science
the former presidents of Uganda ・ The Department of Information Technology
and Tanzania ・ The Department of Information Systems, and

3 PSFU "Annual report 2019-2020" (https://www.psfuganda.org/annual-reports/126-psfu-annual-report-2019-20/file. html)

15
 Contents and achievements of ICT-related education
Organization Overview Source
and training
・ The Department of Networks
・ Offering online courses through Cisco Networking
Academy*
・ *Cisco's IT skills and career building programs for
institutions and individuals around the world as part
of their CSR activities.
・ Signed a memorandum of understanding with
Huawei to hold "Huawei ICT Academy" course
where more than 1,000 students are trained and
certified by Huawei
Equipment used in the school: hp desktop,
HDD500GB, RAM4GB, intel corei5 10th
Generation, Windos10 pro / home Therefore, it is a
rule for students to purchase a laptop PC at their
own expense at the time of admission and attend
classes.)
Career after graduation: Going to higher
education, major telecommunications companies
such as MTN, banks, consultants, donors and
government agencies, freelancers, etc.
Kyambogo ・ A public university established in https://kyu.
University 2003 by integrating three ac.ug/
・ Faculty of Science
organizations (Uganda Polytechnic
・ Department of Computer Science
Kyambogo, Institute of Teacher
・ Bachelor of Information Technology (BITC)
Education, Kyambogo, Uganda
・ Bachelor of Information Systems (BIS)
National Institute of Special
Education). ・ Diploma in Computer Science (DCS)
・ In Uganda, it is regarded as the top- ・ Offering online courses through Cisco Networking
ranked university after Makerere Academy
University.
Uganda ・ Established in 2012 ・ Bachelor of Information Science https://ww
Technology and ・ A private university that ・ Science in Computer Science w.utamu.ac.
Management emphasizes Management, Science, ・ Computer Engineering ug/
University Technology, and Innovation as ・ Software Engineering
(UTAMU) included in the name. ・ Information Systems & Technology
・ Computer Security & Forensics
・ Science in Mobile Computing & Communications
・ Business Computing
・ Offering online courses through Cisco Networking
Academy
Cavendish ・ Established in 2008 ・ Faculty of Science and Technology https://cave
University ・ Bachelors' Degrees ndish.ac.ug
Uganda ・ Bachelor of Information Technology /
・ Bachelor of Science in Software Engineering
・ Bachelor of Science in Computer Science
・ Diplomas
・ Diploma in Computer Science and Information
Technology
・ Offering online courses through Cisco Networking
Academy
International ・ Established in 2005 ・ Faculty of ICT https://isbat
Business, ・ One of the few universities that has ・ Masters of Science in Information Technology – university.a
Science and been awarded a charter by the Specialization in c.ug/
Technology President of Uganda based on the ・ Software Engineering
University evaluation of the National Council ・ Network Engineering
(ISBAT) of Higher Education in Uganda. ・ Embedded Systems
University
・ Telecom Technology
・ Data Engineering
・ Undergraduate Programs – Bachelor of Science in
・ Applied Information & Technology
・ Artificial intelligence & Machine leaning
・ Networking & Cyber Security
・ Offering online courses through Cisco Networking
Academy
Refactory ・ Established in 2018 ・ The program consists of three main components. https://ww
・ An organization formed in  Has been running a catalyst program for 6 w.refactory.
collaboration with Clarke terms since 2018. ug/

16
 Contents and achievements of ICT-related education
Organization Overview Source
and training
International University,  Providing a catalyst program for the first 3
Laboremus Uganda, a tech months-Starting with an overview of software
company, and Fontes Foundation, engineering, first teaching the basics of HTML,
an NGO. CSS, etc. Understanding the backend through
・ Resolve the “skill gap” between Javascript as the next level → Framework →
what the school or university Agile PJ management etc.
teaches and what the employer  After the 3-month course is over, the selected
needs. people are sent to the 6-month bootcamp.
・ After bootcamp, support and introduce jobs.
Billbrian ・ Established in 2016, we are ・ Develop and provide custom-made training and https://billb
Technologies developing our own school while support programs rain.tech/
Ltd. having a school, and we mainly ・ Certified to ISO90001 which is a quality standard for
focus on the following three areas. providing high quality services to clients.
・ IT Enabled Services ・ The outline of the custom-made programs
・ Business Process Outsourcing、 implemented in the past is as follows.
ICT Skills Training (Both  Basic ICT essentials for the office
Individual & Organizational  ICT / cyber security for organizations
Training)  Use of the Internet for effective
・ Product Development communication
 Online / virtual meetings and collaboration
 Digital marketing / PR
 Advanced spreadsheet
 Advanced presentations, etc.
Tellistic ・ A company that provides technical ・ Planning a Talent Accelerator program with UCIT https://tellis
Technology consulting, software development, ・ The three cores of the program (yardstick) are as tic.com/
Services data analysis, and AI solutions for follows
the digital age, with offices in  Practical learning under the guidance of a
Kampala, Uganda and Nairobi, senior software engineer
Kenya.  Real-world projects
 Market-appropriate employable skills

* Source: Tellistic-UICT Talent Accelerator.pdf

ICT Association ・ ICT Association established in ・ ICTAU does not directly provide ICT education, but https://ictau
of Uganda 2012 indirectly contributes to ICT education by hosting .ug/
networking events with ICT-related groups and
institutions and holding forums for exchanging
opinions with information technology experts.

The courses related to software human resource development at each typical educational institution are
shown in the next page.

17
 Table 2-9 UICT Diploma in Computer Technology (DCT)
Year One/Semester One
1. Fundamentals of ICT [MS Apps]
2. Engineering Mathematics I
3. Principles of Electricity & Magnetism
4. Business Communication
5. Principles of Electronics
6. Electronics Workshop Practice

Year One/Semester Two

1. Computer Programming I (C language)
2. Database Systems Design I
3. Operating Systems
4. Digital Electronics
5. Introduction to Microprocessors
6. Industrial Training*

Year Two/Semester One

1. Computer Hardware Maintenance
2. Computer Programming II [Java]
3. Industrial Organization & Management
4. Systems Analysis and Design
5. Micro Controller Technology
6. ICT Project [Proposal Phase]*

Year Two/Semester Two

1. Computer Network Installation & Maintenance
2. Data Communication and Networking I
3. Book-keeping and Entrepreneur Skills
4. Web Application
5. Engineering Project
6. Multimedia Systems
7. Computer Graphics
8. ICT Project (Final Phase) *
Source: UICT website (https://www.uict.ac.ug/computer-technology-dct/)

18
 Table 2-10 UICT Diploma in Information Technology Science (ITS)
Year One/Semester One
1. Fundamentals of ICT [Ms Apps]
2. Computational Mathematics
3. Website Development I
4. Business Communication
5. Computer Workshop Practice I
6. Fundamentals of Book-keeping & Entrepreneurship Skills

Year One/Semester Two

1. Computer Hardware & Maintenance I
2. Computer Programming I (C language)
3. Database Systems Design I
4. Electronic Commerce
5. Computer Workshop Practice II
6. Operating Systems
7. Internship

Year Two/Semester One

1. Website Development II
2. Management Information Systems
3. Computer Programming II [Java]
4. Database Systems Design II
5. Systems Analysis & Design
6. Data Communication & Networking I
7. ICT Projects [Proposal Phase]

Year Two/Semester Two

1. Project Management for Information Systems
2. Software Engineering
3. Data Communication & Networking II
4. Computer Hardware & Maintenance II
5. Graphical User Interface
6. ICT Projects (Final Phase)
Source: UICT website (https://www.uict.ac.ug/wp-content/uploads/2021/11/Diploma-in-DITS1.pdf)

19
●Current human capital development in UICT
1. Number of enrollments in the year 2021/2022 of DCT and ITS courses
Course 2021/2022 Comments
DCT/ITS 200 The curriculum has been revised and renamed Diploma in Computer
Science, we have also designed another diploma course in Software
engineering, 1st intake is August 2022. Expected enrollment is 100 students
2. Number of students in 2nd Grade and 3rd Grade of DCT and ITS courses
Course 1st Year 2nd Year 3rd Year Comments
ITS/ 200 178 We have diplomas for two year and certificates for
DCT twos we don’t have a 3rd Grade. We also offer short
courses in software engineering and programming
3. Number of graduates in the year 2021 of DCT and ITS courses.
Course 2021 Comments
DCT/ ITS 100 Graduands and Enrollments are increasing by the
year
4. Number of teachers in DCT and ITS
Course Number of Teachers Comments
DCT/ ITS 20 This includes full time, part time and visiting teachers
5. Where to work of DCT and ITS graduates
Areas Government Private sector NGOs
Enterprise IT, Big Ministries, Telecom companies, IT Service Local and
data/Data science, Departments and Provider companies, Banking, international
Digital transformation, Agencies, Local Insurance, Manufacturing, agencies;
DevOps, Information government, Education, Agriculture, Health, Oil
and cyber security, security and Gas, Fintech, Start-Ups,
Agile skills, Software institutions, Tax freelance Individual consultancy,
engineering Authorities, security institutions, Business
Process Outsourcing, (BPO), IT-
Enabled Services
Source: Information provided by UICT

20
Table 2-11 Makerere University BACHELOR OF COMPUTER SCIENCE Curriculum (3
years)
Semester 1 (5 Courses)
Code Name LH PH TH CH CU Type

Cores:- (5
Cores)

CSC 1100 Computer Literacy 30 60 - 60 4 Core

BIS 1104 Communication Skills for IT 45 30 - 60 4 Core

CSC 1104 Computer Organization & Architecture 60 - 30 45 4 Core

CSC 1108 Individual Project I 15 90 - 60 4 Core

CSC 1107 Structured Programming 30 30 - 45 3 Core

Total Credit Units 19

Semester 2 (5 Courses)
Code Name LH PH TH CH CU Type

Cores:- (5
Cores)

BIS 1206 System Analysis and Design 45 - 30 60 4 Core

MTH 1203 Calculus I 45 - 30 45 4 Core

CSC 1214 Object Oriented Programming 30 60 - 60 4 Core

MTH 2203 Numerical Analysis I 45 - 30 45 3 Core

BIS 1204 Data & Information Management I 30 60 - 60 4 Core

Total Credit Units 19

Year I Recess term

Code Name LH PH TH CH CU Type

CSC 1304 Practical Skills Development 15 90 - 75 5 Core

CSC 1303 Cisco Certified Network Associate 150 - 75 5 Audited

Total Credit Units 5

Semester 3 (5 Courses)
Code Name LH PH TH CH CU Type

Cores:- (4
Cores)

CSC 2100 Data Structures and Algorithms 45 - 30 60 4 Core

CSC 2114 Artificial Intelligence 30 30 - 45 3 Core

BSE 2103 Computer Networks 45 30 - 60 4 Core

21
MTH 3105 Discrete Mathematics 30 - 30 45 3 Core

Electives:-
(1 Elective)

BSE 2105 Formal Methods 45 - 30 60 4 Elective

CSC 2113 Software Engineering 45 - 30 60 4 Elective

Total Credit Units 18

Semester 4 (5 Courses)
Code Name LH PH TH CH CU Type

Cores:- (5
Cores)

CSC 2200 Operating Systems 45 - 30 60 4 Core

CSC 1209 Logic Programming 30 30 - 45 3 Core

CSC 2209 Systems Programming 45 - 30 60 4 Core

CSC 2210 Automata, Complexity & Computability 45 - - 45 3 Core

BIT 2207 Research Methodology 30 - 30 45 3 Core

Total Credit Units 17

Year 2 Recess term
Code Name LH PH TH CH CU Type

CSC 2303 Field Attachment - 300 - 75 5 Core

Total Credit Units 5

Semester 5 (5 Courses)
Total Credit Units
Code Name LH PH TH CH CU Type

Cores:- (4
Cores)

CSC 3110 User Interface Design 45 30 - 60 4 Core

BAM 2102 Entrepreneurship Principles 30 - 30 45 3 Core

CSC 3112 Principles of Programming Languages 45 - - 45 3 Core

CSC 3118 Computer Science Project I - - 150 75 5 Core

Electives :-
(1 Elective)

BIS 3100 Modeling and Simulation 30 30 - 45 3 Elective

CSC 3121 Computer Graphics 30 30 - 45 3 Elective

CSC 3115 Advanced Programming 45 30 - 45 3 Elective

22
 MTH 3107 Linear Programming 30 - - 30 3 Elective

Total Credit Units 18

Semester 6 (5 Courses)
Code Name LH PH TH CH CU Type

Cores:- (3
Cores)

BSE 2206 Data Communications 45 30 - 60 4 Core

CSC 3205 Compiler Design 45 30 - 45 3 Core

CSC 3211 Computer Science Project II - - 150 75 5 Core

Electives :-
(2 Elective)

CSC 3207 Computer Security 45 30 - 45 3 Elective

BIS 3205 Data Warehousing & Business 45 30 - 60 4 Elective

Intelligence

BSE 3202 Distributed Systems Development 45 30 - 60 4 Elective

CSC 3217 Emerging Trends in Computer 45 45 - 45 3 Elective

Science

Total Credit Units 19/20

Credit Unit (CU). The Credit Unit is a contact hour (CH) per week per semester. A contact hour is equal to:
i. one lecture hour (LH)
ii. two practical hours (PH)
iii. two tutorial hours (TH)

Source: Makerere University website (https://cs.mak.ac.ug/curriculum)

(5) ICT Industry Workers

The number of workers by industry in Uganda's labor statistics is shown in the table in the next page.
Since there is no category of ICT industry in Uganda's labor statistics, the exact number of workers in
ICT industry is unknown, but it is probably included in professional, scientific and technical activities
or other service activities. However, it is assumed that it is included in professional, scientific and
technical activities or other service activities. However, it is assumed that they are probably included in
professional, scientific and technical activities or other service activities. Since the total number of
workers in both categories is about 30,000, the number of workers in the ICT industry is assumed to be
small at present.

23
 Table 2-12 Number of Formal Sector Workers by Industry and Year
Activities 2014 2015

Manufacturing 70,700 80,400

Trade & repairs 31,300 37,000

Transportation & storage 6,000 6,000

Accommodation and food service activities 30,800 36,100

Financial & Insurance activities 15,200 17,100

Professional, scientific and technical activities 6,800 8,200

Administrative & support service activities 8,000 8,300

Public administration 80,600 86,000

Education 619,600 675,000

Human health & Social work activities 26,400 32,000

Arts, Entertainment & recreation 11,500 12,300

Other service activities 12,100 13,800

Total 918,400 1,011,600

Source: Man Power Survey-Uganda 2016/17

More detailed figures are available as ILO statistics. According to this, the number of people working
in the software industry (62 - Computer programming, consultancy and related activities) has grown
rapidly, from 1,1.0000 in 2012 to 5.81,000 in 2017. Note that programming in 60 - Programming and
broadcasting activities refers to television programming, not computer programming.

Table 2-13 Number of workers by industry (ILO statistics)

2012 2017
Total 10602.5 8931.1
01 - Crop and animal production, hunting and related service activities 6815.0 3891.1
02 - Forestry and logging 90.8 150.9
03 - Fishing and aquaculture 106.2 53.2
05 - Mining of coal and lignite
06 - Extraction of crude petroleum and natural gas 0.4 1.3
07 - Mining of metal ores 1.9 0.8
08 - Other mining and quarrying 34.1 114.7
09 - Mining support service activities
10 - Manufacture of food products 78.2 172.8
11 - Manufacture of beverages 105.6 82.4
12 - Manufacture of tobacco products 1.6
13 - Manufacture of textiles 33.4 1.1
14 - Manufacture of wearing apparel 100.4 108.0
15 - Manufacture of leather and related products 4.7 3.4
16 - Manufacture of wood and of products of wood and cork, except furniture; 9.4 14.1
manufacture of articles of straw and plaiting materials
17 - Manufacture of paper and paper products 3.1 4.2
18 - Printing and reproduction of recorded media 7.2 10.5
19 - Manufacture of coke and refined petroleum products 0.3

24
 2012 2017
20 - Manufacture of chemicals and chemical products 5.9 12.4
21 - Manufacture of pharmaceuticals, medicinal chemical and botanical products 2.3 1.9
22 - Manufacture of rubber and plastics products 2.5 4.8
23 - Manufacture of other non-metallic mineral products 85.0 107.3
24 - Manufacture of basic metals 0.6 2.6
25 - Manufacture of fabricated metal products, except machinery and equipment 19.2 89.2
26 - Manufacture of computer, electronic and optical products
27 - Manufacture of electrical equipment
28 - Manufacture of machinery and equipment n.e.c.
29 - Manufacture of motor vehicles, trailers and semi-trailers
30 - Manufacture of other transport equipment
31 - Manufacture of furniture 60.7 61.6
32 - Other manufacturing 1.7 42.1
33 - Repair and installation of machinery and equipment 5.3 11.9
35 - Electricity, gas, steam and air conditioning supply 4.6 8.5
36 - Water collection, treatment and supply 0.8 3.0
37 – Sewerage
38 - Waste collection, treatment and disposal activities; materials recovery 0.4
39 - Remediation activities and other waste management services 1.3
41 - Construction of buildings 230.2 283.4
42 - Civil engineering 24.6 13.2
43 - Specialized construction activities 25.3 40.7
45 - Wholesale and retail trade and repair of motor vehicles and motorcycles 97.1 110.0
46 - Wholesale trade, except of motor vehicles and motorcycles 134.8 180.9
47 - Retail trade, except of motor vehicles and motorcycles 1003.5 1171.2
49 - Land transport and transport via pipelines 239.9 346.1
50 - Water transport 1.1
51 - Air transport 2.3 4.0
52 - Warehousing and support activities for transportation 10.3 17.9
53 - Postal and courier activities 0.6
55 – Accommodation 27.0 32.0
56 - Food and beverage service activities 220.1 284.7
58 - Publishing activities 4.4 5.5
59 - Motion picture, video and television programme production, sound recording and 2.6 0.4
music publishing activities
60 - Programming and broadcasting activities 2.7 14.6
61 – Telecommunications 11.0 4.9
62 - Computer programming, consultancy and related activities 1.0 5.8
63 - Information service activities 3.7 0.7
64 - Financial service activities, except insurance and pension funding 19.0 28.4
65 - Insurance, reinsurance and pension funding, except compulsory social security 2.5 4.7
66 - Activities auxiliary to financial service and insurance activities 1.6 4.2
68 - Real estate activities 8.2 8.0
69 - Legal and accounting activities 7.1 12.8
70 - Activities of head offices; management consultancy activities 1.0 0.9
71 - Architectural and engineering activities; technical testing and analysis 7.3 5.1
72 - Scientific research and development 0.9 3.5
73 - Advertising and market research 3.8
74 - Other professional, scientific and technical activities 4.2 17.3
75 - Veterinary activities 0.9
77 - Rental and leasing activities 1.2
78 - Employment activities 1.6 0.8
79 - Travel agency, tour operator, reservation service and related activities 0.8 2.4
80 - Security and investigation activities 29.0 28.8

25
 2012 2017
81 - Services to buildings and landscape activities 7.9 11.6
82 - Office administrative, office support and other business support activities 3.9 10.2
84 - Public administration and defense; compulsory social security 104.1 123.6
85 – Education 341.5 567.7
86 - Human health activities 90.1 134.8
87 - Residential care activities 8.2 3.1
88 - Social work activities without accommodation 8.2 6.4
90 - Creative, arts and entertainment activities 3.9
91 - Libraries, archives, museums and other cultural activities 2.9 0.8
92 - Gambling and betting activities 2.4 3.1
93 - Sports activities and amusement and recreation activities 8.5 5.4
94 - Activities of membership organizations 18.9 21.3
95 - Repair of computers and personal and household goods 20.2 49.3
96 - Other personal service activities 132.9 201.3
97 - Activities of households as employers of domestic personnel 141.9 150.9
98 - Undifferentiated goods- and services-producing activities of private households for 0.9 0.8
own use
99 - Activities of extraterritorial organizations and bodies 4.5 32.0
Not elsewhere classified 9.3
Source: ILO” Employment by sex and occupation -- ILO modelled estimates, Nov. 2020 (thousands) | Annual”

Compared to other countries that are targeted for offshore development from Japan other than China,
the number is still small.

Table 2-1 Comparison of the number of people working in the software industry
Uganda Vietnam India Bangladesh Japan
Population (ten thousand 4,574 9,734 138,000 16,469 12,648
2020people/year)
Population (ten thousand 7,445 10,780 159,269 18,842 11,336
2040people/year)
Total number of employees 8,931.1 49,755.0 406,246.2 60,827.6 64,815.1
(thousands)
Number of people employed in 5.8 96.3 2,350.6 16.2 983.8
computer programming,
consulting, and related activities
(thousands)
Percentage of total workforce 0.06 0.19 0.58 0.36 1.52%.
employed that is in computer
programming, consulting, and
related activities.
Source: PopulationPyramid.net (https://www.populationpyramid.net/)
For detailed data sources, please refer to the relevant website. Employment figures are from ILO
"Employment by sex and occupation -- ILO modelled estimates, Nov. 2020 (various) | Annual".

The NITA-U STATISTICAL ABSTRACT 2020 also provides the planned number of jobs to be
created in the ICT sector: the number of newly licensed ICT companies will increase from 6 in FY
2018/19 to 10 in FY 2019/20, and the number of new jobs expected as a result of these new investments
in the ICT sector will be approximately 1,025 in FY 2019/20.

26
 1200
1025
1000

800

595 591
600

400

159
200 111

0
2015/16 2016/17 2017/18 2018/19 2019/20

Figure 2-5 Number of Planned Jobs Created in ICT Sector in UIA Data

Source: NITA-U STATISTICAL ABSTRACT 2020

According to the Uganda Household Survey, the number of people in Uganda who have used a
programming language in the past three months is about 30,000 as of 2016/17. The number of human
resources that can be used at the business level is considered to be less than this. As of 2021, the
population is expected to increase and the ratio of people who can use programming at the work level is
estimated to increased. However, compared to Japanese system engineers and programmers, over 1
million4, it seems that the number of ICT workers in Uganda is still not growing.

Table 2-14 Basis for Estimating the Population Using Programming Languages in
Uganda
・ Population is 37.7 million *.
・ Population over 5 years old is 78.6%.
・ 4% of people aged 10 and older have used a computer in the past 3 months
・ Of these, 2% have written a computer program using a specialized programming
language in the past three months.
*According to the World Bank, Uganda's population will be 44.27 million in 2019, but here we have used figures from the

2016/2017 household survey, in line with other figures.

Source: Uganda Bureau of Statistics, "Uganda National Household Survey 2016/2017 Report."

4 Employees of "system consultants / designers", "software creators", and "other information processing / communication
engineers". https://www.meti.go.jp/policy/it_policy/jinzai/houkokusyo.pdf

27
Figure 2-6 Population Aged 10 years and Older Who Have Used a Computer in the Past
3 Months (%)
Source: Uganda Bureau of Statistics, "Uganda National Household Survey 2016/2017 Report."

Entertainment
Writing a computer program using specialized
programming language
Transfering files between a computer & other
devices
Creating electronic presentations with presentation
software
Finding, downloading, installing &configuring
software
Connecting & installing new devices
Using basic arithmetic formulae in a spreadsheet
Sending e-mails with attached files

Using copy & paste tools to duplicate or move

information within a document
Copying or moving a file or folder

Figure 2-7 Computer-based Activities in the Past 3 Months (%)

Source: Uganda Bureau of Statistics, "Uganda National Household Survey 2016/2017 Report."

28
(1) Value Added Amount
In this survey, we could not find the relevant statistics on the production value of Ugandan companies,
but we were able to obtain the statistics on added value. The size of the ICT sector in terms of real value
added based on the FY2016/17 baseline increased from UGX5 2.24 trillion in FY2018/19 to UGX 2.91
trillion in FY2019/20. The contribution of the ICT sector to nominal GDP was 2.6 percent in FY2019/20.

Figure 2-8 ICT Sector Value Added and Share of GDP

Source: NITA-U STATISTICAL ABSTRACT 2020

When it is compared with neighboring countries’, Uganda's share of the ICT sector relative to GDP
is slightly higher than that of neighboring countries. In terms of the ICT sector's contribution to GDP,
Kenya, with its large GDP size, is the largest. However, Tanzania, which has a larger GDP size than
Uganda, has a slightly smaller ICT sector share than Uganda, so its GDP contribution is about the same
as Uganda's. Rwanda has the smallest GDP among the neighboring countries, so its ICT sector
contribution to GDP is also small.

5 1 Ugandan shilling = approx. 0.03 yen (as of March 2021)

29
 Table 2-15 GDP Contribution by ICT Sector (Comparison with Neighboring Countries)

GDP (2019, ICT sector's

ICT sector share
nominal, $ billion) contribution to GDP
（b）
（a） （a X b）
Uganda 35.17 2.6% 0.9
Rwanda 10.35 2.0% 0.2
Kenya 95.50 1.3% 1.2
Tanzania 63.18 1.5% 0.9

Note: ICT sector share data for the years are as follows. Uganda: FY 2019/20; Rwanda: FY 2019/20; Kenya: FY 2017; Tanzania:

FY 2019 (forecast).

Source: Compiled by research team (GDP value: World Bank, ICT sector share: NISR (Rwanda), KNBS (Kenya), TNBS

(Tanzania))

In the case of Japan, the ICT industry's share of nominal and real GDP in 2018 was about 10%.
According to OECD data, as of 2015, the ICT industry's share of GDP in OECD member countries
ranged between 3% and 10%, with an average of about 6%. In light of these data, the ICT industry's
share of domestic industry is still small in Uganda compared to developed countries.

[Reference material]

Figure 2-9 Value Added of Major Industries in Japan (Domestic Production Value)

Source: 2020 White Paper on Information and Communications (Ministry of Internal Affairs and Communications)

30
 Figure 2-10 Value Added by the ICT Sector in OECD Countries

Source: OECD Digital Economy Outlook 2017

In terms of value added by product/service type, in Uganda, telecommunication services accounted

for the majority of value added, about 80% of the total ICT industry value added. In FY2019/20, nominal
value added from programming and related services was about 170 billion UGX, and nominal value
added from information services was about 120 billion UGX, accounting for about 5% and 3% of the
total ICT industry, respectively.
In the case of Japan, the value added of the software industry and the value added of the information
service industry accounted for over 11% and 7%, respectively, of the total value added of the information
and communication industry in FY 2018.

Table 2-16 Nominal Value Added by Product and Service Type in Uganda
2017/18 Share 2018/19 Share 2019/20 Share
Computer, Electronic and Optical
3,590.8 0.1% 3,712.5 0.1% 3,318.7 0.1%
Products

Postal and Courier Services 43,579.6 1.6% 45,041.4 1.6% 40,775.4 1.1%

Audio-Visual Production and

67,162.8 2.5% 61,861.5 2.2% 59,964.0 1.7%
Distribution Services
Broadcasting and Programming
44,909.4 1.7% 45,417.5 1.6% 20,828.2 0.6%
Services

Telecommunications Services 2,024,395.2 76.0% 2,168,152.4 75.5% 2,881,770.5 80.7%

Computer Programming,
125,756.0 4.7% 164,453.3 5.7% 167,991.1 4.7%
Consultancy and Related

Information Services 103,652.4 3.9% 124,386.6 4.3% 117,745.3 3.3%

Repair of Computers and

249,141.6 9.4% 260,343.8 9.1% 277,123.3 7.8%
Personal and Household Goods
ICT Sector Gross Value Added
2,662,187.8 100.0% 2,873,369.0 100.0% 3,569,516.5 100.0%
(Total)
（Unit: Million UGX）
Source: NITA-U STATISTICAL ABSTRACT 2020

31
[Reference material]
Table 2-17 Nominal Domestic Production Value (Value Added) by Sector in the
Information and Communication Industry in Japan
2016 Share 2017 Share 2018 Share
Communications 17,869 18.7% 18,340 18.8% 18,780 19.0%
Broadcasting 4,094 4.3% 4,085 4.2% 4,112 4.1%
Information services 18,041 18.8% 18,638 19.1% 18,991 19.2%
Software 10,650 11.1% 11,195 11.5% 11,464 11.6%
Data processing and
information services
7,391 7.7% 7,443 7.6% 7,527 7.6%
Internet-related sevices 3,494 3.6% 3,605 3.7% 3,725 3.8%
Video, audio and text information
production
5,878 6.1% 5,843 6.0% 5,574 5.6%
ICT-related manufacturing 17,833 18.6% 18,964 19.4% 19,215 19.4%
ICT-related services 15,026 15.7% 14,712 15.1% 14,738 14.9%
ICT-related construction 167 0.2% 151 0.2% 145 0.1%
Research 13,335 13.9% 13,409 13.7% 13,818 13.9%
Total 95,737 100.0% 97,747 100.0% 99,098 100.0%
(Unit: Billion JPY)
Source: 2020 White Paper on Information and Communications (Ministry of Internal Affairs and Communications)

(2) Export Value

The value of exports from the ICT sector in Uganda reached about UGX 80 billion in FY 2016/17,
but in other years it has been around UGX 20 billion to UGX 40 billion, with a slight downward trend
in the last three years. In other years, the value of ICT exports has been in the range of 20 to 40 billion
UGX. ICT exports in Uganda are small in both value and percentage.
The details of the export value by product/service type are not clear, but according to the information
obtained from the interviews with the Ministry of ICT, the exports are mainly device equipment that are
assembled in Uganda and BPO services such as call centers. However, there are some companies that
are exporting software and ICT solutions such as fintech and payment services.

Figure 2-11 ICT Sector Exports

Source: NITA-U STATISTICAL ABSTRACT 2020

32
 In addition, a comparison of the ICT sector's share of exportsfrom1997 to 2017 every 10 years shows
an increase from less than 1% to about 11%.

Total exports 1997: $0.93B

Total exports 2007: $2.17B

Total exports 2017: $4.55B

Figure 2-12 Change in Export Ratio (1997,2007,2017)

Source: Center for Development Alternatives,"Industrial Policy for Economic Transformation in Uganda, June 2020

33
(3) ICT Development Index
The ICT Development Index (IDI), published by the UN International Telecommunication Union, is
an index that rates ICT development on a scale of 1 to 10 based on three components: ICT access, ICT
use, and ICT skills.
In IDI's 2017 ranking by countries around the world, Uganda ranked 152 out of 176 countries, with a
score of 2.19 out of 10.

Figure 2-13 IDI Index and Ranking Trends in Uganda

Source: NITA-U STATISTICAL ABSTRACT 2020

In 2017, the score for each sub-index was 2.45 for ICT access, 1.87 for ICT use, and 2.29 for ICT
skills, also out of 10. In the interview with the Ministry of ICT, the challenges of the ICT sector in
Uganda include lack of infrastructure, lack of investment, lack of ICT equipment, and lack of skills of
ICT engineers.
In the same year's ranking, Iceland (score 8.98), South Korea (8.85), and Switzerland (8.74) were
ranked first, second, and third, respectively. Japan ranked 10th (8.43). As for African countries, even
Mauritius, the top-ranked country, ranked only 72nd (5.88), while Uganda's neighbors were Kenya 138th
(2.91), Rwanda 153rd (2.18), and Tanzania 165th (1.81). The rankings of African countries are generally
low. Detailed data for each index is shown the next page.

34
 Table 2-18 ICT Development Index (IDI) for Each Country (FY2017)

Mobile-cellular International
Fixed-telephone
ICT Access telephone Internet Percentage of Percentage of
Rank IDI Index subscriptions
Subindex subscriptions bandwidth households with households with
per 100
per 100 (bit/s) per a computer Internet access
inhabitants
inhabitants Internet user
Uganda 152 2.19 2.46 0.89 55.07 5509.90 7.60 8.90

Mauritius 72 5.88 7.04 30.65 144.24 63490.79 61.23 63.80

African Kenya 138 2.91 3.63 0.15 81.28 69014.25 14.78 22.30
countries Rwanda 153 2.18 2.67 0.11 69.92 7454.72 4.50 9.30
Tanzania 165 1.81 2.52 0.24 74.36 1741.27 3.90 8.47
Iceland 1 8.98 9.38 48.36 118.01 997829.92 98.50 96.96
South Korea 2 8.85 8.85 56.10 122.65 54252.22 75.29 99.19
Switzerland 3 8.74 8.85 48.43 135.62 269221.69 89.33 86.79
Japan 10 8.43 8.80 50.57 129.75 83010.25 81.00 97.23

Active mobile-
Fixed-broadband
ICT Use Percentage of broadband ICT Skills
subscriptions Mean years of Secondary gross Tertiary l gross
Subindex individuals using subscriptions Subindex
per 100 schooling rate enrolment ratio enrolment ratio
the Internet per 100
inhabitants
inhabitants
Uganda 1.87 21.88 0.26 33.71 2.29 5.70 26.10 4.48

Mauritius 4.44 53.23 16.90 51.75 6.43 9.10 95.70 36.67

African Kenya 1.76 26.00 0.33 26.16 3.79 6.30 67.64 4.05
countries Rwanda 1.58 20.00 0.17 27.01 2.40 3.80 39.12 7.53
Tanzania 0.75 13.00 0.25 9.22 2.49 5.80 32.26 3.65
Iceland 8.70 98.24 37.62 103.99 8.75 12.20 118.56 81.26
South Korea 8.71 92.72 41.13 111.48 9.15 12.20 97.73 95.35
Switzerland 8.88 89.41 46.27 103.66 8.21 13.40 99.77 57.23
Japan 8.15 92.00 31.47 131.91 8.22 12.50 101.75 63.36

Source: 2017 Global ICT Development Index

(1) Government Agencies Related to ICT Policy

The table below shows a list of major ministries and agencies in Uganda.

Table 2-19 List of Major Ministries in Uganda

Ministry
Ministry for Agriculture, Animal Industry and Fisheries
Ministry of Defense and Veterans Affairs
Ministry of Disaster Preparedness and Refugees
Ministry of East African Community Affairs
Ministry of Education and Sports
Ministry of Energy and Mineral Development
Ministry of Finance, Planning and Economic Development
Ministry for Foreign Affairs
Ministry of Gender, Labor and Social Development
Ministry of Health
Ministry of Information, Communications, Technology and

35
 National Guidance
Ministry of Internal Affairs
Ministry for Karamoja Affairs
Ministry of Lands, Housing and Urban Development
Ministry of Local Government
Ministry of Public Service
Ministry of Science, Technology and Innovation
Ministry of Tourism, Wildlife and Antiquities
Ministry of Trade, Industry and Cooperatives
Ministry of Water and Environment
Ministry of Works and Transport
Office of the President
6
Source: Based on the Government of Uganda website

The main ministries in Uganda are shown in the chart above. The ministries that are considered
relevant to the ICT industry are outlined below7.

○Ministry of Information, Communications, Technology and National Guidance (Ministry of ICT)

A ministry that provides strategic and technical leadership, overall coordination, support, and advice
on all ICT industry policy, legal, regulatory, and strategic issues. Specifically, its mission is to develop
and implement information and communication technology policies, and to maintain, manage, and
oversee the information and communication technology infrastructure.

○Ministry of Science, Technology and Innovation (MSTI)

The ministry was established in June 2016 based on the government's recognition of prioritizing
issues related to science, technology and innovation as key drivers of economic development. Its mission
is to provide leadership, environment and resources for scientific research and development for
industrialization, competitiveness and job creation leading to a sustainable economy.

○Ministry of Trade, Industry and Cooperatives

A ministry responsible for the expansion and diversification of trade, promotion of industry,
sustainable industrialization, etc., with the aim of generating wealth that will benefit the country socially

6 http://cabinetsecretariat.go.ug/files/downloads/Cabinet%202019-2021.pdf
https://www.gou.go.ug/ministries
https://www.monitor.co.ug/News/National/Museveni-shuffles-Cabinet-drops-Muloni-Nadduli-Ssekandi/688334-5386130-
139sq4lz/index.html
7 https://www.gou.go.ug/ministries

36
and economically. Specifically, its mission is to promote foreign and domestic trade and to negotiate
treaty-related arrangements.

(2) Positioning of ICT Industry in National Policy

8
The framework issued by the National Planning Authority (NPA), mainly the national vision
"Uganda Vision 2040" and the specific development plan "National Development Plan (NDP) III", will
be used in this paper to clarify the policy position of the ICT industry. In this section, we first provide
an overview of the Uganda Vision 2040 and the NDP, and then discuss the specifics of each.

Table 2-20 Overview of Uganda Vision 2040 and NDP

Framework Overview
9
Uganda Vision 2040 In 2007, the Cabinet approved the National Vision Statement “A
transformed Ugandan society from a peasant to a modern and
prosperous country within 30 years”. The National Planning
Authority, in consultation with other government agencies, issued the
Uganda Vision 2040 on April 18, 2013 to operationalize this vision
statement. Uganda Vision 2040 is based on the progress made in
addressing the bottlenecks that have impeded Uganda's socio-
economic development since independence. The bottlenecks include,
ideological confusion, weak private sector, underdeveloped human
resources, inadequate infrastructure, small markets, lack of
industrialization, underdeveloped service sector, underdeveloped
agriculture, and lack of democracy. Uganda Vision 2040 was
conceptualized around strengthening the "economic fundamentals"
to take advantage of the abundant "opportunities" throughout the
country. The "opportunities" are specifically oil and gas, tourism,
minerals, ICT, abundant labor, geography, trade, water resources,
industrialization, and agriculture. The "economic fundamentals"
include energy, transportation, water, oil and gas, ICT and other
infrastructure, science, technology, engineering and innovation, land,
urban development, human resources, and security and defense.
National Development Plan The National Development Plan (NDP) sets forth the country's
10
(NDP) medium-term strategic direction, development priorities, and

8 The National Planning Authority (NPA) is a government agency established by the NPA Act (2002 15) pursuant to Article
125 of the Constitution of the Republic of Uganda, 1995. Its main mandate is to prepare a comprehensive and integrated
national development plan, monitor and evaluate public projects and programs, and advise the President on policies and
strategies for national development. http://www.npa.go.ug/
9 http://www.npa.go.ug/uganda-vision-2040/
10 http://www.npa.go.ug/development-plans/national-development-plan-ndp/

37
 Framework Overview
implementation strategy. In addition, it details Uganda's current
development status, challenges and opportunities. In line with the
National Vision Framework, six five-year NDPs will be
implemented, and three NDPs have been implemented so far. The
first NDPI is for the period 2010/11 to 2014/2015, the second NDPII
is for the period 2015/16 to 2019/2020, and the latest NDPIII is for
the period 2020/21 to 2024/25, issued in July 2020.
The NDPIII is structured based on the NDPs implemented so far, and
the priority sectors (agriculture, ICT, mineral and oil exploitation,
manufacturing, human capital and infrastructure development)
remain unchanged from the previous ones.
Source: Based on Uganda Vision 2040 and NDP website

(a) Uganda Vision 2040

The ICT industry is a major "opportunity" for development for Uganda, and is positioned as the
"foundation of the economy". As such, it is expected that the ICT industry will contribute to the gross
domestic product and create employment opportunities. However, the use of ICT in industrial
development, digital content and business automation in the country is still at a low level. In addition,
Uganda currently does not have a large export record in the ICT industry due to limited domestic
manufacturing of ICT products, making it a net importer of ICT products. Uganda's trend is in contrast
to emerging economies that have become more export-oriented with a focus on ICT. For example, the
share of ICT products in the value of exports has increased significantly in these emerging economies,
as estimated at 56% in the Philippines, 45% in Singapore, and 45% in Malaysia.

In order to increase the use of ICT, Uganda Vision 2040 mentions the following specific goals.

Table 2-21 Specific Goals Set Out in Uganda Vision2040

1. Develop, improve, and restructure ICT human resource development mechanisms by adopting
skill assessment, training, and certification standards that are globally benchmarked and industry-
recognized.
2. Continue to develop a robust, high-speed ICT infrastructure that is compatible with technological
advances.
3. Develop the necessary policies and regulations to promote and support the business process
outsourcing (BPO) business, and make it part of the global ICT outsourcing business by 2040.
4. Encourage innovation to take full advantage of the potential of the digital economy and
technological innovation.

38
 5. Establish software development standards to ensure effective interoperability of processes and
systems among government agencies, the private sector, civil society, and development agencies.
6. Develop a platform where the private sector can co-create with government agencies to provide
services with new added value.
7. To facilitate transformation across government agencies, bring as many public services online as
possible, automate tasks, reduce paperwork and increase internal operational efficiency.
Source: Based on Uganda Vision 2040

To achieve these goals, the government will promote the development of the ICT industry during the
implementation of Uganda Vision 2040. Specifically, the government will provide adequate
infrastructure for the establishment of high-tech cities and support private sector investment in the high-
tech industry. In addition, ICT and BPO parks and software incubation centers will be established in
regional cities. Yet another approach would be to attract world-leading technology companies, while at
the same time providing a fertile ground for Uganda's innovative start-ups to grow. Such a high-tech
city would be modeled after Silicon Valley in the US and East London Tech City in the UK. High tech
cities will be hubs for innovative technology companies that can create many technology-related jobs
and significantly expand the country's tax base.

(b) NDPIII
The NDPIII builds on the previous NDPI and NDPII, but to achieve rapid results, the NDPIII takes a
programmatic approach to planning. The NDPIII is a programmatic approach to planning as outlined in
the Comprehensive National Development Planning Framework (CNDPF, 2007) and the National
Development Planning Regulations (2018). A mix of top-down and bottom-up approaches is used to
ensure that strategic guidance is provided at the national level and that identified development priorities
are implemented at the sector and local government levels through the development of national
development programs and projects. The strategic direction of the NDPIII was determined through an
extensive consultative process based on background analysis work on past industrialization efforts and
strategies, trends in key growth sectors (agriculture, ICT, minerals, oil and gas), export and import
performance, and sector priority statements.

Specifically, the NDPIII identifies the following as key development opportunities

39
 Table 2-22 Key Development Opportunities as Defined in NDPIII
1. Increased demand for export of agricultural products
2. Strengthening the competitiveness of the manufacturing industry
3. Improving regional and international transportation connectivity to facilitate trade
4. Ongoing demand for natural resources
5. Opportunities to use ICT for development
6. Innovative ways to finance development
Source: Based on NDPIII

The NDPIII has designed 18 programs designed to address the 13 bottlenecks adopted by the African
Union and to deliver the required results. These programs incorporate country commitments to regional
and international development frameworks and cross cutting issues. 18 programs include, for example,
agro-industrialization programs, mineral development programs, and digital transformation programs.
This section will outline the Digital Transformation Program as it relates to the ICT industry.
The Digital Transformation Program aims to promote the diffusion of ICT and the use of ICT services
for social and economic development. despite the potential of ICT, its use in the country is still limited.
Reasons cited are (1) low network penetration, (2) low quality of services, (3) high cost of equipment
and services for end users, (4) insufficient ICT knowledge and skills, and (5) low innovation capacity.
Therefore, the goal of this program is to promote the diffusion of ICT and the use of ICT services for
social and economic development. The main outcome objectives to be achieved in the next five years
are as follows

Table 2-23 Outcome Objectives Defined in NDPIII

1. Increase ICT penetration (Internet penetration rate from 25% to 50%, digital terrestrial TV signal
penetration rate from 56% to 95%, NBI connection rate in government MDA / DHq to 70%,
national broadband penetration rate of 90% with a minimum speed of 8 Mbps)
2. Reduce the cost of ICT equipment and services (unit cost of Internet in the retail market from
US$237 (1Mbps) to US$70 (1Mbps) per month, unit cost of low-end smartphones from UGX
100,000 to UGX 60,000, unit cost of computers from UGX 1,600, 000 to UGX 800,000).
3. To create 30,000 direct jobs per year in the ICT sector.
4. Increase the number of ICT innovation products developed and commercialized in the country
from 72 to 282.
5. 80% of government services will be provided online.
Source: Compiled based on NDPIII

In addition, to address the constraints of the ICT industry in Uganda, the program also has the
following goals

40
 Table 2-24 Goals for Solving ICT Industry Constraints as Defined in NDPIII
1. Increase the coverage of domestic ICT infrastructure.
2. Enhance the use of ICT in national development and service delivery.
3. Promote ICT research, innovation, and commercialization of indigenous knowledge products.
4. Increase ICT human resources.
5. Strengthen the policy, legal, and regulatory framework.
Source: Compiled based on NDPIII

In order to achieve the aforementioned objective outcome goals, the NDPIII is supposed to prioritize
the interventions listed in the table below.

Table 2-25 Digital Transformation Interventions and Respective Actors

Interventionism Relevant actors
Objective 1: Increase the national ICT infrastructure coverage
1 Extend broadband ICT infrastructure coverage Ministry of ICT, NITAU, Uganda
countrywide in partnership with the private sector and all Communications Commission
Government entities and implement last mile connectivity (UCC ), Postal Service Providers
to key areas (Districts, sub-counties, schools, hospitals, (POSTA), Private Telecom
post offices, tourism sites, police, Local Governments etc.) Operators (UTL, etc.), Ministry of
Leverage existing infrastructure by government and Energy and Mineral Development,
private sector players Uganda Electricity Transmission
Company (UETCL), Uganda
Electricity Distribution Company
(UEDCL), Uganda Broadcasting
Corporation (UBC) / SIGNET
( Digital Terrestrial Television
Signal Distributor), other utility
service providers (Ministry of
Water and Environment and
Ministry of Transport),
communication service providers
2 Expand the Digital Terrestrial Television and Radio Ministry of ICT, NITAU, UCC,
Broadcasting network UBC / SIGNET, broadcast service
providers
3 Establish and enhance national common core NITAU, Ministry of ICT, UCC,
infrastructure (data centers, high power computing private sector players

41
 centers, specialized labs)

Objective 2: Enhance usage of ICT in national development and service delivery

1 Mainstream ICT in all sectors of the economy and digitize All central government agencies
service delivery
2 Strengthen Cyber Security in the country Ministry of ICT, NITAU, UCC,
private sector players, security
agencies
3 Develop and implement the Data Protection and Privacy Ministry of ICT, NITAU, UCC,
Program private sector
4 Leverage the existing Government infrastructure to POSTA, Ministry of ICT, NITAU,
deliver public and private services
Ministry of Public Service (MoPS)
5 Digitize, archive and commercialize Local Contents All central government agencies,
and data private sector
6 Implement the national addressing system POSTA, Ministry of ICT, NITAU,
Ministry of Local Government
(MOLG), Local Government,
Kampala Capital City Authority
(KCCA)
Objective 3: Promote ICT research, innovation and commercialization of indigenous
knowledge products
1 Develop and implement ICT Research and Innovation Ministry of ICT, UICT, Ministry of
ecosystem Science, Technology and
Innovation (MSTI), UCC, NITAU,
academia, private sector
2 Develop Innovation and incubation Centers Ministry of Information and
Communications Technology,
Uganda Institute of Information and
Communications Technology
(UICT), MSTI, private sector, civil
society, academia
3 Support local innovation and promote export of Ministry of ICT, NITAU, UCC,
knowledge products private sector, academia
4 Promote local manufacturing and assembly of ICT Ministry of ICT, UCC, NITAU,
products MSTI, private sector
5 Undertake innovative management of e-waste Ministry of ICT, NITAU, UCC,
private sector, academia, Uganda

42
 National Management Authority
(NEMA), Ministry of Water and
Environment, local governments
Objective 4: Increase the ICT human resource capital
1 Develop a well-grounded ICT professional workforce Ministry of ICT, UICT, Ministry of
Education and Sports (MoES),
NCDC, NCHE, Academia
2 Develop an ICT professional’s quality assurance Ministry of ICT, UICT, NITA,
framework MoES, National Curriculum
Development Centre (NCDC),
National Council for Higher
Education (NCHE)
3 Provide digital literacy training Ministry of ICT, UICT, UCC,
NITAU, NCHE , Academia
4 Develop ICT centres of excellence and vocational Ministry of ICT, UICT, UCC,
institutions MoES, NCHE
5 Review and implement ICT training curriculum at all Ministry of ICT, UICT, UCC,
levels of Education system in line with the emerging NITAU, MoES, NCDC, NCHE,
technologies Academia
6 Implement targeted capacity building for teachers to Ministry of ICT, UICT, MoES,
incorporate ICT in
7 Pedagogy NITAU, NCHE
Objective 5: Strengthen the policy, legal and regulatory framework
1 Regulate, coordinate and harmonize ICT infrastructure Ministry of ICT, UCC, NITAU
planning, sharing and deployment within the public
and private sector
2 Review and develop appropriate policies, strategies, Ministry of ICT, UCC, NITAU
standards and regulations that respond to industry
needs
Source: Compiled based on NDPIII

For this program to be successful, the following human resource gaps need to be addressed. For
example, DevOps 11 Specialists, Graphic Design Specialists, Software Engineering Specialists, Web
Programming Specialists, System Auditors, etc. The table in the next page details the status of missing
skills that are not available for training in Uganda (status: x) and missing skills that are available for
training in Uganda (status: ∆). Government interventions to address key skills and competencies are
described in Objective 2 of the Human Capital Development Programme and the National Human
Resource Development Plan (NHRDP): (NHRDP). To address these gaps holistically, sectors and local

11 DevOps is a software development methodology in which Development and Operations collaborate and cooperate.

43
governments will develop their own human resource development plans and central ministries will
develop capacity building plans.

Table 2-26 Qualifications and Skills Needs for ICT and Digital Technology Program

Qualifications and Skills Status Estimated 5-year

gap
Applications developers △ 920
Business intelligence (BI) analysts △ 416
Computer and Information Systems Managers △ 489
Computer Science Programmers △ 556
Computer Systems Analysts △ 456
Computer vision engineers △ 575
Data Communication and Software Engineering △ 380
specialists
DevOps specialists △ 1,241
Graphic Designing specialists △ 1,093
Information Science specialists △ 402
Machine learning and Artificial Intelligence (AI) △ 397
specialists
Machine learning Engineers △ 460
Multimedia Artists and Animation specialists △ 277
Software Engineering specialists △ 1,936
Software Developers △ 2,928
Software Quality Testing (SQT) Automation specialists △ 3,113
Web Programming specialists △ 2,056
System auditors △ 2,342
* △: Skills in Short supply and Training is in-country
Source: Compiled based on NDPIII

(3) Major ICT-related Programs

The Ugandan government has launched several programs to accelerate ICT industry. An overview of
each program is given in the next page.

44
 12
○The National ICT Initiatives Support Program (NIISP)
The Government of Uganda has developed the NIISP to facilitate the creation of an ICT innovation
ecosystem and a marketplace for innovative digital products in Uganda. The growth of the ICT
innovation ecosystem in Uganda has been largely led by the private sector, with minimal direct support
from the government. This approach has not been very successful and has resulted in stand-alone, closed
software applications that have failed to spur innovation at the national level. NIISP aims to break the
bottleneck in building digital ecosystems by facilitating the development and deployment of applications.
NIISP will eliminate the bottlenecks in building a digital ecosystem by facilitating the development and
deployment of applications, and by creating an open ecosystem in Uganda that will enable the
government, businesses, and individuals to innovate and enter new markets.

○The National Data Transmission Backbone Infrastructure and e-Government Infrastructure Project
(NBI/EGI)13
The Ministry of ICT is implementing NBI/EGI through NITAU. The main objective of this project is
to connect all major cities in the country to fiber optic cable-based networks and to connect ministries
and government agencies to e-government networks.

○The National Security Information System project

The Government of Uganda, through the Ministry of Internal Affairs, is implementing the National
Security Information System project. This project is essential for the creation of a biometric national
identity registry to enhance national identity management, national security, and the social and economic
development of the country.

(4) Major ICT-related Regulations

○Ministries with regulatory jurisdiction
According to a survey 14 by the Ministry of Internal Affairs and Communications of Japan, the
government regulatory body for the telecommunications sector in Uganda is the Uganda
Communications Commission (UCC), the regulatory body for telecommunications, broadcasting and
postal services. Although this organization is state-owned in Uganda, it is an administrative body
independent of the government and was established under the provisions of UCC act 2013. The main
goal of the UCC is to develop a modern telecommunications infrastructure in Uganda in compliance
with the telecommunications policy. The UCC is responsible to Parliament and the Ministry of ICT. The
UCC is responsible to the Parliament and the Ministry of ICT, has the power to issue business licenses,
and funds surcharges on the annual gross revenues of operators.

12 http://niisp.ict.go.ug/about
13 https://ict.go.ug/projects-programmes/national-backbone-infrastructure-project/
14 https://www.ide.go.jp/Japanese/Data/Africa_file/Company/uganda03.html

45
 On top of that, in April 2017, the Ugandan Parliament empowered the Minister of ICT to enact
regulations in the telecommunications sector on his own. Until now, any regulation proposed by the
Minister had to be approved by the Parliament. However, with the passage of the Uganda
Communications Amendment Bill 201615 by Parliament on April 6, 2017, the enactment of regulations
in the communications sector is now solely the domain of the Minister. These regulations relate to
licensing and fees, obligations of operating companies, competition, customer rights and protection, etc.
The newly passed decree was published in the newspapers in February 2016 when it was still on the
agenda, which is why it faced criticism from the private sector.

○Uganda Communications Act, 201316

The Uganda Communications Act is a consolidation of the Uganda Communications Act and the
Electronic Media Act, approved in December 2012. The Uganda Communications Act also dissolved
the Uganda Communications Commission and the Broadcasting Council and reconstituted them as a
single entity, now known as the UCC17. The Uganda Communications Act sets out the general legal
framework for telecommunications in Uganda. It also includes a detailed institutional framework for
the creation of the UCC, licensing, competition, scarce resource management, tariff regulation,
penalties and sanctions.

(5) Taxation and Laws Related to the ICT Industry

(a) Tax System
The Government of Uganda has provided in the Excise Duty (Amendment) Act 2018 that " Mobile
money transactions of receiving, payments and withdrawals: 1% of the value of the transaction”. This
bill was passed18 and from July 1, 2018, every time a mobile money account is used (received, paid
and withdrawn), the government will tax 1% of the value of the transaction.
In addition to the aforementioned mobile money tax, the Excise Tax (Amendment) Act, 2018 also
includes a social media tax that levies 200 shillings (about $0.05) per day on access to social media such
as Facebook, Twitter, and WhatsApp. Many citizens opposed the mobile money tax and the social media
tax. The Ugandan youth called on the Speaker of Parliament to withdraw the law that approved the tax
on social media and mobile money19.
20
Subsequently, due to public opposition, the mobile money tax was amended by the Excise Duty
(Amendment) (No. 2) ACT 2018 and the rate was reduced from 1% to 0.5%. In addition, the only taxable
transaction is "withdrawal"21.

15 http://parliamentwatch.ug/wp-content/uploads/2016/10/The-Uganda-Communications-Amendment-Bill-2016.pdf
16 https://www.ucc.co.ug/files/downloads/UCC%20Act%202013.pdf
17 https://chapterfouruganda.org/resources/acts-bills/uganda-communications-act-2013
18 https://www.africanews.com/2018/07/17/uganda-removes-taxes-on-depositing-and-sending-mobile-money/
19 https://www.africanews.com/2018/07/04/ugandans-challenge-social-media-tax-in-court-want-mps-to-rescind-the-law/
20 https://www.parliament.go.ug/documents/3344/acts-2018
21 Mobile money transaction of withdrawal of cash: 0.5% of the value of the transaction

46
(b) Overview of the Judicial System
Since Uganda was once a British colony, the country's legal system is mainly based on British
common law. The supreme law is the Constitution of the Republic of Uganda, promulgated in 1995. The
Constitution of the Republic of Uganda established Uganda as a republic with an executive branch
headed by the President, a legislature headed by the Speaker, and a judiciary headed by the Chief Justice.
The Constitution protects private property and investment, and the Investment Act guides and regulates
investment in the country22. It is also a signatory to the International Centre for Settlement of Investment
Disputes (ICSID) Convention and the Convention on the Recognition and Enforcement of Foreign
Arbitral Awards, also known as the New York Convention.

(c) Laws and Arrangements Relating to Employment.

According to JETRO's Uganda Business Establishment Handbook (March 2021)23, the main laws24
that apply to employment and labor-related matters in Uganda are as follows.

○Constitution of the Republic of Uganda, 1995 (hereinafter referred to as the "Constitution")

It provides for a variety of employment-related rights and protections, including equality and freedom
from discrimination, protection from slavery and forced labor, the right to a fair hearing, freedom of
association and protection of economic rights.

○Employment Act, 2006 (hereinafter referred to as the "Employment Act")

It governs the relationship between employers and employees, consolidates the laws governing
individual employment relationships, and provides for other related matters.

○Labor Unions Act, 2006

It governs the establishment, registration and operation of trade unions in Uganda. The Trade Union
Act stipulates that workers have the right to form trade unions and prohibits employers from interfering
with workers' right to organize.

○National Social Security Fund Act (Cap. 222) (hereinafter referred to as the "NSSF Act")
The NSSF Act also provides for the membership of the NSSF, the payment of contributions and the
payment of benefits from the NSSF. The NSSF Act also provides for NSSF membership, payment of

22 Adapted from Uganda Investor Guide, Regional Investment Institution of the Southeast African Market Community
23 https://www.jetro.go.jp/ext_images/_Reports/02/2021/555bc5cc07c33fda/rpug202103book_rv.pdf
24 These legal frameworks address all issues affecting employment, covering wages, leave, social security, occupational

health and safety, trade unionization, employment of women and youth, and resolution of labor disputes. The law governing
employment in Uganda is also the national legislation of the International Labor Organization (ILO) conventions to which
Uganda is a signatory. Uganda is a dualist country, and this is in accordance with Article 123(1) and (2) of the Constitution
and the application of the Ratification of Treaties Act (Cap. 2014).

47
contributions and payment of benefits from the NSSF.

○Workers Compensation Act, 2000

It provides for the right to compensation for workers injured by the nature and form of their
employment.

○Occupational Safety and Health Act, 2006 (Occupational Safety and Health Act, 2006)
It provides for the registration of workplaces, provides for the introduction of workplace inspections
to ensure workplace safety and the provision of safety equipment and facilities to workers, and
consolidates, coordinates and updates legislation on occupational safety and health.

○Labor Dispute (Arbitration and Settlement) Act, 2006

It revises and consolidates the law on labor disputes, provides for the establishment of industrial courts
dedicated to hearing and resolving labor disputes, and establishes procedures for handling labor disputes
in the courts.
In addition, according to JETRO's Uganda Business Establishment Handbook (March 2021)25, the
arrangements for labor-related matters in Uganda are as follows.

○Employment
The employment relationship in Uganda is a contractual relationship; therefore, the contracting parties
are presumed to have voluntarily agreed to the terms of the employment contract. This freedom of
contract is subject to the rights and freedoms protected under the Ugandan Constitution and employment
laws, which provide for equality and freedom from discrimination in the workplace and freedom from
slavery and forced labor. While employers are free to hire whomever they deem fit for a given position,
they shall not infringe on the rights and freedoms of prospective employees as set forth in the
Constitution and the Employment Act in considering them for employment. Furthermore, employers
should guarantee and ensure that these freedoms and protections are enjoyed during the period of
employment.
Employers must ensure that job advertisements do not directly or indirectly discriminate against any
person for any reason, including but not limited to race, sex, pregnancy, unmarried or married, health
status, ethnic or social origin, color, age, disability, religion, conscience, creed, culture, dress, language,
or birth. Notwithstanding this, employers may, for good cause, hire persons who meet the prescribed
criteria for jobs and positions, and may also hire from among the marginalized sections of the community
on the basis of affirmative action.
Worker background inquiries and background checks on workers are not restricted, but should be
done carefully, keeping in mind the right to privacy of workers given by the Constitution.

25 https://www.jetro.go.jp/ext_images/_Reports/02/2021/555bc5cc07c33fda/rpug202103book_rv.pdf

48
○Employment contract
The employment contract may be oral or written. A temporary employee shall be entitled to a written
contract and all the rights and benefits enjoyed by other employees, provided that the service lasts for 4
consecutive months. Any employment contract that expressly excludes the provisions of the
Employment Law (or contains terms and conditions less favorable to the worker than the provisions of
the Employment Law) shall be null and void. The parties are free to agree on terms and conditions that
are more favorable to the worker than the provisions of the Employment Law.

○Wages
The last time Uganda's legal minimum wage was updated was in 1984, when it was set at 6,000
Uganda Shillings (about US$2). Currently, there is no legal minimum wage in Uganda. However,
employers are encouraged to pay their workers a fair wage commensurate with the work they have done.
According to the transcript of the lecture "Listening to the Labor Situation (Labor Situation in Uganda
26
2015)" in the invitation program conducted by the International Labor Foundation, the Minimum
Wage Board was established in August 2013.
Subsequently, the Minimum Wages Bill, 2015 was passed by the Parliament, which sought to provide
for the determination of minimum wages according to various industrial sectors, but this bill was
repealed by the President.

○System for working hours, breaks, and vacations

The Employment Law stipulates that the maximum prescribed working hours for a worker is 48 hours
per week, but the 48 hours per week may be exceeded by agreement between the employer and the
worker. However, the working hours may be exceeded by agreement between the employer and the
worker, provided that the working hours do not exceed 10 hours per day or 56 hours per week. The law
grants the minister the authority to allow longer working hours for workers in managerial positions and
those working in family-owned workplaces that employ up to five dependents.
In workplaces where the maximum prescribed working hours are 8 hours or more per day, workers
shall be entitled to a 30-minute break per day.
With respect to overtime work, if a worker works more than eight hours per day or forty-eight hours
per week, the remuneration of such worker shall be one and one-half times the regular hourly rate if the
overtime work is performed on a regular working day, while it shall be twice the rate if the overtime
work is performed on an official holiday as specified in the Official Gazette.

○Work Regulations
The employer shall provide the worker with a written statement of the terms and conditions of

26 https://www.jilaf.or.jp/rodojijyo/africa/east_afica/uganda2015.html

49
employment within 12 weeks from the date of employment. The employer shall keep a copy of this
document and present a copy to the labor officer upon request. This document is usually incorporated
into the entity's Code of Conduct.

○Resignation and Termination

There are three types of dismissal: dismissal with prior notice, which is done according to the notice
authority according to the length of time the employee has been employed; immediate dismissal; and
dismissal for redundancy.
The Employment Law allows employers to immediately dismiss workers for poor performance or
misconduct. Before deciding to dismiss a worker for these reasons, the employer must give the worker
an opportunity to be heard on the grounds of misconduct or poor performance. The employer must also
explain to the worker the reasons for considering such dismissal in a language that the worker can
understand. During the hearing, the worker shall have the right to have another worker, a trade union, a
legal representative of his or her choice or any other person of his or her choice present at the explanation.
The worker has the right to have a hearing and have his or her statement considered before the decision
to dismiss is made.

(d) Commercial Law

According to JETRO's Uganda Business Establishment Handbook (March 2021) 27 , Uganda's
commercial laws28 are as follows.

○Company Law
The Uganda Companies Act, 2012 (the "Companies Act") sets out the framework for the registration,
operation and regulation of companies incorporated in Uganda and companies incorporated in Uganda
are subject to the Companies Act. The Companies Act also permits the establishment in Uganda of a
branch of a foreign company that maintains the same legal personality as the foreign company.
The agency that manages the filing of all corporate documents in Uganda is the Uganda Registration
Services Bureau (URSB), which operates the Companies Registry, which is responsible for the filing,
registration and record keeping of all companies incorporated in Uganda. The URSB operates the
Companies Registry, which is responsible for the filing, registration and record keeping of all companies
incorporated in Uganda.

○Legal Framework for Intellectual Property

The types of intellectual property that are commonly used and protected in Uganda include trademarks,

27 https://www.jetro.go.jp/ext_images/_Reports/02/2021/555bc5cc07c33fda/rpug202103book_rv.pdf
28 In Japan, the term "commercial law" generally refers to the Commercial Code, the Companies Act, the Insurance Act, the
Negotiable Instruments Act, and the Cheques Act. In this paper, commercial law refers to the Ugandan Companies Act and
other legal frameworks related to commerce.

50
copyrights and neighboring rights, design rights, patents and utility models, and trade secrets.
Registration of intellectual property is done by the Intellectual Property Directorate of URSB.
Uganda has national laws governing the registration and protection of intellectual property. At the
regional and international levels, Uganda is a member of the African Regional Intellectual Property
Organization (ARIPO) and the World Intellectual Property Organization (WIPO), and is a signatory to
a number of ARIPO and WIPO treaties and protocols that promote the broad-based and international
protection of intellectual property. Uganda has adopted a dualistic system of international law, which
means that when treaties and protocols are signed that affect the application of domestic law, they should
be made into domestic law by an Act of Parliament.

○Laws related to trademark rights

In Uganda, trademarks are governed by the Trademarks Act, No. 17 of 2010 (hereinafter referred to
as the "Trademarks Act") and the Trademarks Regulations, S.I No. 58 of 2012. Broadly speaking,
Uganda is a signatory to the ARIPO Banjul Protocol on Marks, but has not made the Protocol into its
national trademark law.

○Laws related to copyrights

In Uganda, copyright and neighboring rights are regulated by the Copyright and Neighboring Rights
Act, No. 19 of 2006 and the Copyright and Neighboring Rights Regulations, S.I No. 1 of 2010.
Internationally, Uganda is a signatory to the Marrakesh Treaty, the Beijing Treaty on Audiovisual
Performances, and the WIPO Internet Treaties. It is a signatory to the Beijing Treaty on Audiovisual
Performances and the WIPO Internet Treaties. Copyright arises from the creation of a work subject to
copyright protection and requires no formalities.

○Trade Secrets Protection Act, No. 2 of 2009 (hereinafter referred to as "Trade Secrets Protection
Act")
The Trade Secrets Protection Act governs the protection of non-public information in commercial
transactions and other related matters. Under the Trade Secrets Protection Act, a trade secret is defined
as any information, including but not limited to a process, formula, compilation, program, method,
technique, or process, or any information contained in or embodied in a product, device, or mechanism,
that is all of the following
(a) Used or likely to be used by peers or industry.
(b) Not generally known in the relevant trade or industry.
(c) Economic value can be gained by not being generally known.
(d) It is the subject of reasonable efforts under the circumstances to maintain its confidentiality.

Under the Trade Secrets Protection Act, the holder of a trade secret has the right to restrict the

51
disclosure, acquisition, or use of the trade secret. The holder has the right to prevent information under
his or her lawful control from being disclosed to, or obtained or used by, others without his or her consent
in a manner inconsistent with good commercial practice, if the information is a trade secret that meets
the above definition. The disclosure, acquisition or use of a trade secret by fraudulent means constitutes
infringement, and therefore any person entitled to the benefit of the trade secret may bring an action for
such infringement.

○Competition law
As of 2019, Uganda does not have a dedicated regulatory body or authority to enforce the Competition
29
Act or competition laws.

○Consumer protection law30

Currently, there is no consumer protection law. However, Uganda does have a number of laws that
contain provisions directly or indirectly related to consumer protection in certain situations. For example,
the Bank of Uganda's Financial Consumer Protection Guidelines, issued under the Bank of Uganda Act31,
sets out the rights of consumers when dealing with Ugandan banking institutions.

32, 33
○Data Protection and Privacy Act 2019
The Data Protection and Privacy Act of 2019 was enacted to implement Article 27 of the
Constitution of the Republic of Uganda, which states that no person shall have the privacy of his or her
home, means of communication or other property infringed. With this law, Uganda became the first
country in East Africa to enact a data protection law. The purpose of this law is to protect the privacy of
individuals and their personal data; regulate the collection and processing of personal information;
provide for the rights of persons whose data is collected; provide for the obligations of data collectors,
data processors and data controllers; and regulate the use or disclosure of personal information. It also
regulates the use or disclosure of personal information.

The number of people engaged in the ICT industry is as shown in 3-1 (5). There were
no official statistics on the skills of Ugandan ICT personnel, but there is some useful
information on the evaluation of universities by Hackerearth, a company that supports
the recruitment of IT engineers in India. 7,099 universities from which the participants of

29 https://www.bakermckenzie.com/-/media/files/insight/guides/2019/overview-of-competition-and-antitrust-regulations-in-
africa.pdf
30 https://www.mondaq.com/contracts-and-commercial-law/766688/commercial-law-in-uganda
31 https://www.bou.or.ug/bou/bouwebsite/FinancialInclusion/consumerprotection.html
32 https://www.pavia-ansaldo.it/legal-alert-uganda-data-protection-and-privacy-act-2019/?print=pdf
33 https://ict.go.ug/wp-content/uploads/2019/03/Data-Protection-and-Privacy-Act-2019.pdf

52
the Hackerearth coding test came were ranked. The ranking is based on 7,099 universities
from participants who took the Hackerearth coding test.
However, since the Massachusetts Institute of Technology, Stanford University,
Canada's University of Toronto and McGill University, which are famous for AI, as well as
the University of Tokyo and Kyoto University in Japan, the evaluation of universities
outside of India tends to be higher. Therefore, the evaluation of universities outside of
India should be helpful to some extent. In addition, since the questions are written in
English, there is a language barrier for Japanese students, so the results of Japanese
universities are relatively low.
Noteworthy is Makerere University, which is rated at the same level as Tokyo Institute
of Technology. Although it is lower than the University of Cape Town, which is said to be
one of the top universities in Africa, it is higher than the University of Nairobi, indicating
that it has received a very high evaluation. Next in line is3325 Uganda Christian
University.
In Uganda, it is expected that the coding skills of ICT engineers in top-ranked
universities are at a high level. On the other hand, there is a wide variation in the skill
level of ICT engineers in Uganda as some universities such as Mbarara University of
Science and Technology, Ndejje University, and Gulu University are rated lower.

Table 2-27 Evaluation of universities by HackerEarth, a company that helps recruit IT

engineers in India
Rank Name of University score

1 Indian Institute of Information Technology - Allahabad 194.3

... . ..a number of Indian universities... ...

472 The University of Tokyo 115.9

515 Massachusetts Institute of Technology 113.6

612 Tokyo University of Foreign Studies 109.2

738 Harvard University 103.6

745 University of Toronto 103.5

944 Kyoto University 97.3

950 McGill University 96.9

985 Stanford University 96.0

1092 University of Cape Town 92.2

1636 Tokyo Institute of Technology 78.9

1663 Makerere University 78.3

1753 University of Nairobi 76.7

53
 1852 Waseda University 75.1

2686 Kyambogo University 60.8

3216 Keio University 53.7

3325 Uganda Christian University 52.4

3600 Tokyo University of Science 48.5

... ... ...

4015 Kampala International University 42.6

4421 Tokyo Denki University 38.1

4440 Uganda Martyrs University 37.8

... ... ...

5480 Sophia University 25.9

5618 Kampala University 24.1

5642 Shonan Institute of Technology 23.4

5643 Tokyo Metropolitan University 23.4

... ... ...

6050 Mbarara University of Science and Technology 19.0

6094 Ndejje University 17.5

6989 Gulu University 5.3

7099 Nantong Medical College 0.1

(Lowest)
Note: The results of prominent universities in the U.S., Canada, Africa, and Japan, as well as those of Ugandan universities,
Japanese universities before and after the Ugandan universities, and the lowest-ranked universities are extracted for
reference.
The evaluation criteria are as follows
1. the number of problems solved by programmers from each university.
2. the performance of the programmers from each university in the tasks conducted by HackerEarth.
Source: https://www.hackerearth.com/ja/college-ranking/
https://www.quora.com/How-are-the-college-rankings-decided-on-Hackerearth

Based on the results summarized in the previous section, the ICT industry ecosystem in Uganda will
be summarized in this section. There are various ways of organizing the ICT industry ecosystem, but
one of the most famous ways is the Fransman way.

54
 Figure 2-14 Fransman's New ICT Ecosystem

Source: Ministry of Internal Affairs and Communications, "Research Study on Structural Changes and Future Prospects of

Global ICT Industry" (2015)

The target of this survey is mainly the soft ICT industry, and the definition of Fransman is broader
than the target of this survey.

Table 2-28 Overview of Layers

Layer Industry Overview
Layer 3 E-commerce platforms such as Jumia, Dondolo, GoodsExpress, Intraline, Paple
Rayn, OLX and Eye Trade are emerging34.
Commercial banks in Uganda are beginning to introduce mobile money services.
Internet service providers include MTN UGANDA, AFRICA ONLINE,
DATANET, INFOCOM, and UGANDA TELECOM35.
Layer 2 The telecom service providers include MTN Uganda, Smart Telecom, Access
Mobile, Huawei Technologies, Bharti Artel, Ericsson Worldwide, Vodafone,
Orange, and Nokia. The following companies are active as telecommunication
service providers
Of these, MTN is one of the leading telecommunication providers in Uganda,
with over 3.5 million users. Despite inadequate infrastructure (electricity,

34 https://www.nordeatrade.com/en/explore-new-market/uganda/e-commerce
35 Namuddu Caroline and Matovu Ronald (2018) "ISP INTERCONNECTIVITY IN UGANDA".
http://dissertations.mak.ac.ug/bitstream/handle/20.500.12281/4381/Namuddu-CEDAT-
Undergrad.pdf?sequence=1&isAllowed=y

55
 Layer Industry Overview
transportation network, etc.), MTN covers more than 90% of the urban
population and provides services in more than 150 towns, villages and
neighborhoods.
Layer 1 As for the software contracting industry, there are companies such as Service
Cops, Acerat Limited, Kanzu code, N Micros, as mentioned above.
Cell phone devices are sold by Tecno, Samsung Mobile phone equipment is
sold by Tecno, Samsung, Infinix, Apple, Itel, Huawei, Nokia, and others36.
Source: Compiled by the research team

The following are some of the issues that the interviewees have responded to during the field survey
interviews about the ICT industry in Uganda.

Table 2-29 Issues Identified in the Interviews

Classification Challenges in fostering the ICT industry
Human ・ Lack of opportunities to practice and enhance ICT knowledge learned at
resource universities.
・ University education is biased toward theory.
・ Lack of funds to use online education such as Udemy.
・ Lack of human resource development institutions (both public and private)
or quality of services
・ The programming languages and IT knowledge used for development are
outdated. (In this ever-evolving world, the IT education system is not
keeping up with the current trends.
・ Little experience with services and not enough understanding of the product
(e.g., I can't make a horse racing app because I don't know horse racing)
・ Inability to care about the product (especially UI/UX) (don't know or know
anyone who does)
Infrastructure ・ Lack of Internet access. Slow internet speed (especially in rural areas).
・ Lack of high-spec computer tools
・ The specifications of the PCs installed at the university are low.
・ PCs are not widespread.
Funds ・ No funding scheme to support startups

36 https://gs.statcounter.com/vendor-market-share/mobile/uganda

56
 Classification Challenges in fostering the ICT industry
・ Difficulty in raising working capital, and inability to undertake large-scale
projects
・ Banks have high interest rates and strict screening procedures.
・ Even if you train engineers in-house at your own expense, you can't pay
their salaries if there is no project, so you have to release them until a new
project starts.
Opportunity ・ The domestic ICT industry is not growing, and there are few opportunities
to win orders only in Japan.
・ The market for ICT services is not expanding due to low IT literacy in the
country.
・ Lack of access to overseas markets
・ Lack of experience and lack of skills to meet the requirements of the client
・ Foreign companies receive government bids, which does not lead to the
development of domestic companies.
Institutions ・ There is no common index (qualification) to evaluate and assess the
and policies capability and quality of ICT human resources and IT companies.
・ Taxes on social networking transactions.
・ There are no government incentives for ICT companies (as in other
countries).
Other ・ Many people do not have credit cards and do not have access to AWS or
Google Cloud.
・ High maintenance costs for bank foreign currency accounts (motivation will
not continue unless it becomes an ongoing project)
・ Many people want to work as freelancers because they can get better
remuneration from Western companies for freelance contracts, so they do
not grow as companies.
Source: Survey by research team

Each of these issues is discussed in more detail below.

(1) Human Resources Issues

First of all, many of the companies interviewed raised the issue of the lack of opportunities to
practice and enhance the ICT knowledge learned at universities and other institutions, and the issue that
university education is biased toward theory. In addition, the programming languages and IT knowledge
used for development are outdated. (In this ever-evolving world, the IT education system has not been
able to keep up with the current trends.) It was also pointed out that the development of the ICT industry

57
requires excellent ICT human resources, but the problem is that the teachers in the educational
institutions that produce these human resources do not have much practical experience.
Another challenge is the lack of funds to use online education such as Udemy due to low per capita
income.
Some ICT companies in Uganda pointed out that they do not have enough experience with the services
to catch up with the understanding of the products. In Japan, train tickets and e-money using contactless
IC chips and various web and application reservation services abound, but with little experience in such
services, it is difficult to understand the output of the products, making it difficult to build websites and
applications. It also leads to a decline in the quality of UI/UX of the software built.
In addition, we directly interviewed six engineers who were selected by Rakuten's engineering team
from among the top nominees in the JICA-sponsored Coding Contest and who responded to our e-mail,
as well as Ugandan domestic offshore development companies that have experience in receiving
overseas projects selected by the research team. In addition, the research team interviewed six engineers
who were selected by the research team and responded to our e-mails, as well as a Ugandan domestic
offshore development company that had experience in receiving overseas projects. Although there are
differences in the sense of challenges depending on the skills of each individual, the number of years of
experience as a member of society, and the position and stage of the company to which they belong, the
following table shows the challenges that were commonly cited by more than two respondents. Mainly,
issues related to skills and environment were raised.

Table 2-30 Issues Faced by ICT Human Resources as Revealed by the Interviews
Field Issue Respondent Issue Details
Skills Lack of practical Senior Level The content taught at universities and other
training Engineer institutions is not practical, so a lot of
opportunities Manager training is needed after joining a company or
CTO starting your working experience.
I want to take a paid course, but I can't
because it's too expensive.
Lack of Senior Level The management skills of the engineers
management Engineer themselves are low, and many of them do not
skills among CTO understand what they need to do to speed up
engineers development, improve technology, and
achieve project deadlines.
Environment Difficult to Senior Level I would like to purchase a high-spec
procure Engineer computer such as a Mac Book Pro to develop
hardware a more advanced development environment,
but there are few routes to obtain it and the

58
 Field Issue Respondent Issue Details
price is often too high to purchase.
Insufficient Junior Level The salary of an engineer is lower than that
compensation Engineer of a bank or a major company, so even if you
for engineers Manager have an IT background, if you get a job offer
from a bank, you will get a job at a bank.
We want to hire a top engineer as CTO on a
full-time basis, but the maintenance and
management alone is not enough to provide a
stable income to sustain the employment, so
we have to switch to part-time employment
once the product is completed to some extent.
Difficult to get CTO The best way for engineers to grow is to
just the right Manager receive training on a practical basis through
orders for skill projects, but it is nearly impossible to receive
development. a project at a convenient time when the skill
level of the engineers for the project is just
right, neither too short nor too high.
Difficulty in Senior Level Even if you want to develop a service that
accessing large Engineer uses a database, you will face difficulties
amounts of data Manager from the pre-development stage because the
original data is not stored in data format such
as paper.
Lack of access to Junior Level College-educated engineers cannot use the
cloud services Engineer service because they do not have a credit
card.
Source: Survey by research team

(2) Infrastructure Issues

Infrastructure is also a major issue. In particular, there is a lack of Internet environment, and even
when Internet access is available, the speed is slow. Especially in the rural areas, the speed was slow,
which affected the research team's ability to conduct web conferences.
Another issue is the lack of high-spec computer tools. Some people pointed out that the specifications
of the computers installed in universities are low, but in the educational institutions we visited, the
specifications of the installed computers did not seem to be that low. This is probably a general trend.
The fact that PCs are not as widespread as they are in Japan is also a major issue for the development
of the ICT industry. The following is the status of computer use in Uganda, and the computer ownership

59
rate is extremely low at 2%. Improving this rate is a major issue.

Figure 2-15 Ownership of ICT Equipment (%)

Source: Uganda Bureau of Statistics, "Uganda National Household Survey 2019/2020 Report."

Figure 2-16 Population Aged 10 Years and Older Who Have Used a Computer in the
Past 3 Months (%) (Repost)
Source: Uganda Bureau of Statistics, "Uganda National Household Survey 2016/2017 Report."

60
 Entertainment
Writing a computer program using specialized
programming language
Transfering files between a computer & other
devices
Creating electronic presentations with presentation
software
Finding, downloading, installing &configuring
software
Connecting & installing new devices
Using basic arithmetic formulae in a spreadsheet
Sending e-mails with attached files

Using copy & paste tools to duplicate or move

information within a document
Copying or moving a file or folder

Figure 2-17 Activities Conducted Using Computers in the Past 3 Months (%) (Repost)

Source: Uganda Bureau of Statistics, "Uganda National Household Survey 2019/2020 Report."

(3) Corporate Financing Issues

In Uganda, ICT companies are often established as startup companies, but the lack of financial
schemes to support such startup companies is also an issue. According to Ugandan ICT companies, it is
not easy to procure working capital, which prevents them from undertaking large scale projects. In the
case of ICT companies, if installment payments based on the progress criteria are not allowed in some
cases, or if advance payments are not allowed, the payment is made in a lump sum after the project is
completed. In such a case, the company would have to bear the cost of ICT engineers' salaries, equipment
procurement fees, cloud computing fees, and other expenses during the project implementation period.
In the case of large projects, the burden becomes so large that small ICT companies are unable to take
on large projects because they cannot bear the burden.
Another issue raised by ICT companies in Uganda is that even if they train engineers internally at
their own expense, they cannot pay their salaries if there is no project, so they have to release them until
a new project starts. This is also related to the funding issue mentioned above, but if an ICT company is
small in size, it becomes difficult to keep people who cannot be deployed to projects within the company.
As a result, it becomes difficult for companies to train engineers on a large scale at their own expense,
and this is one of the reasons why they cannot produce practical ICT engineers.

(4) Business Opportunities Issues

The domestic ICT industry is not growing, and the challenge is that there are few opportunities to

61
receive orders in Japan alone. On the other hand, it is also difficult to win contracts from overseas due
to lack of access to overseas markets.
Another issue is that the market for ICT services is not expanding due to the low level of IT literacy
in the country. As IT literacy increases, the use of e-commerce and e-booking systems will increase, and
the need for related ICT software will also increase. However, due to the low level of IT literacy among
the Ugandan population, large-scale software development is still rare. As a result, there is a lack of
experience and a lack of technology that can meet the requirements of the client side, and we suspect
that this is one of the reasons why it has become difficult to receive contracts from overseas.
Another point raised by industry organizations was that since foreign companies win government bids,
it does not lead to the development of domestic companies. It means that foreign companies are the only
ones who can meet the required level of government bids, and therefore domestic companies cannot
receive orders. In this project, an offshore pilot project is being implemented, but we also think it would
be effective to implement a government-wide pilot project.

(5) Systems and Policies Issues

In terms of institutional and policy issues, both individual companies and industry organizations
pointed out that there is no preferential treatment for ICT companies from the government (as in other
countries). The tax burden seems to be particularly high for companies in the startup phase. In addition,
foreign companies operating in Uganda also pointed out this point, suggesting that this is a major
problem.
We also heard protests against Uganda's taxation of social media users and taxation of mobile money.
These were also pointed out as risk factors in the survey by the Ministry of Internal Affairs and
Communications of Japan37. Government incentives for Uganda Telecoms is also a risk factor.
Another problem is that it is difficult to select excellent human resources and companies because there
is no common index (qualification) to evaluate and assess the ability and quality of ICT human resources
and ICT companies. It was also difficult to find excellent ICT human resources and ICT companies
when the research team conducted this project, and we believe that domestic companies in Uganda may
be facing the same problem.

(6) Other Issues

Other issues we heard were that many people do not have credit cards and cannot use AWS or Google
Cloud.
Another issue is the high cost of maintaining a foreign currency bank account (motivation will not
continue unless the project becomes an ongoing one).

37 Ministry of Internal Affairs and Communications (2018), "Information and Communication and Postal Sector in Africa
Information Collection and Research Project" (https://www.soumu.go.jp/menu_seisaku/ictseisaku/ict_kokusai/africa.html)

62
 It should be noted that the opinion that many people want to work as freelancers because they can get
better remuneration if they are commissioned by Western companies as freelancers was raised by the
engineers interviewed in this field survey. However, when we actually looked at the results of the coding
contest, the majority of the top ranked ICT engineers were employees working for companies rather
than freelancers.

The research team made the problem tree by using the various issues listed in 3-5, in order to organize
the issues of the ICT industry structure in Uganda. The results of the analysis are described as follows.
First, the reasons why Uganda's ICT industry is not growing are broadly divided into market problems
and corporate problems. Market problems can be broadly divided into few opportunities for domestic
orders and few opportunities for orders from overseas. As for corporate problems, there are few merits
of having a large-scale ICT company, and to grow the company. There is also no financial mechanism
for the company, and the management lacks the willingness to make the ICT company bigger.
To solve this problem, it would be more efficient to focus on the biggest issues. The biggest issue
seems to be "ICT companies /engineers in Uganda cannot receive software development projects from
companies overseas (especially Japanese companies).”. Therefore, we set it as the central problem and
the analyzed the causes. The issues were broadly categorized into (1) the individual capability aspect,
which is the quality of engineers, (2) the organizational aspect, which is the management capability of
the company, the number of engineers, the company size, and the small number of track records, (3) the
infrastructure (hardware) aspect, and (4) the market (business) aspect, which is the lack of matching
opportunities. Next, the research team conducted a more detailed problem- tree analysis for the issues
of quality of engineers. The issues related to the quality of engineers were categorized into technology
competency, methodology competency, business/industry knowledge, project management competency,
and communication competency.

63
Figure 2-18 Problem Tree: Challenges Faced by ICT Companies/Engineers in Uganda

64
 ICT companies /engineers in
Uganda cannot receiv software
developmente projects from
companies overseas (especialy
Japanese companies).

ICT engineer's ICT companies' It is difficult to get hold of enough number of ICT companies are too ICT ICT infrastructure Overseas companies
There is no opportunity to have engineers/companies do (especially Japanese
management ability small to get offshore (hardware, internet
quality is low. ICT engineers to assign offshore development development business business matchings with not have enough track environment, etc.) is not companies hesitate to
is not enough.
work from overseas. from overseas. record. facilitated enough. offshore to Uganda.
overseas companies.

There are few overseas

Details in the There are few Domestic ICT development
There are few companies (especially Japanese
next page. Lacking There is not enough high quality full time work companies) that are interested market in Uganda is small.
experiences business engineers. engineers. in ICT companies in Uganda. Development Internet There is no bridge There is no IT costs a lot for the
of a large oppoetunities to environment connection is engineers who can know-how to first projects since
projects have practical (PC etc.) is not enough. speak English to manage make contracts there is no business
(contract, management Refer to: "ICT Domestic ICT development not enough. offshore project with companies experienceswith
There is no funiding
accounting experiences. Domestic ICT companies. overseas. overseas companies
engineer's quality mechanisms (private market in Uganda is small.
etc.). development market loans, public fundings
is low" tree
etc.) to mature
in Uganda is small. companies.
There is not It needs money
ehough works to Companies/engi Current works can be
to hire full time Industires which use ICT are not High spec products
keep full time neers do not are not familiarized done with low spec PCs
Domestic ICT work engineers. matured enough in Uganda.
engineers. have money. in Uganda. so there is no incentive
development market Industires which use Private investment to introduce better ones.
Public fund is
in Uganda is small. ICT are not matured agencies are not not enough.
There is no funiding enough in Uganda. matured enough. Projects which needs
Domestic ICT high ICT technologies
mechanisms (private are few.
development market
loans, public
in Uganda is small.
Industires which fundings etc.) to
use ICT are not mature companies. There is no funiding mechanisms Domestic ICT Domestic ICT
matured enough in Industires which use (private loans, public fundings development market development market in
Uganda. ICT are not matured etc.) to mature companies. in Uganda is small. Uganda is small.
enough in Uganda. Private
investment
Public fund is
agencies are
not enough. Industires which use
not matured
enough. ICT are not matured
Private investment Public fund is Industires which use enough in Uganda.
agencies are not not enough. ICT are not matured
matured enough. enough in Uganda.

Figure 2-19 Problem Tree: Challenges Faced by ICT Companies/Engineers in Uganda

65
 ICT engineer's
quality is low.

Ability related to Ability related to Knowledge about Ability to manage a Communication skill with
technology is not methodology is not enough. sectors/industries is not project is not enough. clients or other project
enough. enough. members is not enough.

Coding ability is not Coding languages and Ability to consider Ability to define Ability to design Skills of methodologies Ability to conduct a project Ability to manage a project Limited opportunity to
enough. ICT knowledge are old. about the solutions system requirement system to conduct tasks as a project member is not as a project manager is not conduct projects with a
(service contents, is not enough. architecture is not (quality managment enough. enough. team.
UI/UX, etc.) is not enough. methodology etc.) is
enough. not enough.
Not getting used to Do not know how to Not getting used to Do not know how to use
Limited knowledge ICT education quality is ICT education There is no process works (planning, use project conduct management project management tools
of practical coding. low (contents are quality is low. experiences of using practicing, reporting). management tools and (planning, directing, and develeopment tools.
mostly theories). new ICT technology (ex. develeopment tools. managing).
using cloud services). Academic Limited
institutions/lecturers to opportunities to
teach methodologies are develop software.
Limited opportunities to
lacking.
develop software.
Limited Academic Appropriate Do not have There is little ICT
opportunities of institutions/lecturers to academic enough money to infrastructure for
practical software teach practical coding is institutions/lecturer learn. learning.
development. lacking. s are lacking.

Domestic ICT
ICT products are not Limited opportunity development market in
familiarized in Uganda. to learn about Uganda is small.
sectors/industries.

Industires which Industires which use ICT

Each skills are categorized as follows; use ICT are not are not matured enough in
Technology: Technical skills which is necessary to process the works. matured enough Uganda.
Methodology: Skills (approaches, methods, and solutions etc.) which is necessary to process works. in Uganda.
Sectors/Industries: Knowledge which is necessary to know about sectors and industries.
Project management: Skills which is necessary to operate projects.
Personal: Human skills which is necessary to process works.

Figure 2-20 Problem Tree: Issues Related to the Quality of Engineers

66
(1) Coding Contest Conducted by JICA Uganda Office
The JICA Uganda Office conducted a coding contest for Ugandan ICT engineers from December
2020 to March 2021 (titled “Uganda Technology Engineer's Challenge 2021”). 551 ICT engineers
participated in the contest, which was conducted to obtain data on the expertise, ability, skill levels, and
challenges of Ugandan ICT engineers.
The summary of the basic data obtained from the participants and the contest results are shown below.

(a) Basic data

Figure 2-21 Age of Participants

Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

The largest age group of participants was between 25 and 29 years old, accounting for 46% of the
total. In general, most of the participants were young.

Table 2-31 Gender of the Participant

Male 499 91%
Female 52 19%
Total 551 100%
Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

The majority of participants were male, accounted for 91% of the total.

67
 Table 2-32 Educational Level of Participants
No formal education. 1 0%
Elementary school 3 1%
graduate
Secondary School 9 2%
Graduate
High School Graduate 92 17%
Vocational Training 28 5%
School
Bachelor's degree 387 70%
Master's degree 22 4%
Graduate School 9 2%
Total 551 100%
Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

The most common education level was bachelor's degree, accounting for 70% of the total. The second
most common education level was a high school diploma. Most of the respondents were educated until
the high school level or above.

Figure 2-22 Participants’ Number of years Working in the ICT Industry

Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

Most of the participants had less than 3 years of working experience. This may be because many of
the participants were young and had just started working.

68
 Figure 2-23 Employment status of participants
Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

In terms of employment status, the most common answer was full-time employment at a company
etc., followed by freelancers and students. There were few number of respondents who answered that
they were managers or self-employed.
(b) Result of the Contest
In the contest, tests were conducted on the following five items.

Table 2-33 Contents of the Test

Items Subject (Test Name) Description.
Data Almost Even This assignment tested the ability to manipulate
Structures and arrays and other data structures.
Algorithms
Database Month N' Month % Growth This assignment tested data analysis skills for
Management Rate common reporting tasks, and database (SQL)
skills.
Applied Complementary DNA This task tested the ability to manipulate strings,
Mathematics arrays and other data structures. It also tested the
ability to optimize the solution in readability and
maintainability as well as performance.
Mathematics Diophantine Equation This task tested the mathematical skills.
Design Software Engineering Design This task tested the engineer's familiarity with
Patterns Patterns engineering design patterns.
Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

The above tests were sent to 551 people, but only 126 people (about 23%) submitted answers for all
the tests. The results of the tests for each item are shown in the next page. It is expected that some
participants who could not cope with the test at all gave up submitting their responses. The results of the
tests were as follows.

69
 Table 2-34 Result of the Test
Almost Even Month N’ Month % Complementary DNA
Growth Rate
Local Global Local Global Local Global
Number of 172 495 149 459 135 427
samples
Pass Rate 54.7 61.4 45.6 59.0 71.9 84.1
Lowest 0 0 0 0 0 0
Score
Highest 100 100 100 100 100 100
Score
Average 59.5 66 54.3 76.9 76.9 86.5
Score
Standard 45.8 44.3 48.6 39.4 39.4 32.5
deviation

Diophantine Equation Software Engineering General

Design Patterns
Local Global Local Global Local Global
Number of 124 230 133 194 143 361
samples
Pass Rate 58.1 52.6 0 0 46.06 51.42
Lowest 0 0 0 0 0 0
Score
Highest 100 100 83.3 200 96.66 100
Score
Average 61.7 61.3 39.8 44.5 58.44 65.98
Score
Standard 46.8 44.5 17.3 21.3 39.58 36.88
deviation
Note 1: Local data shows the results of contest participants in Uganda.
Note 2: Global data shows the results of participants around the world who took the same test.
Source: JICA ICT CODING COMTEST IN UGAND FINAL REPORT

In the four items, "Almost Even," "Month N’ Month % Growth Rate," " Diophantine Equation," and
"Software Engineering Design Pattern," the pass rate and average score of contest participants were
lower than the global data. The difference between the contest participants' data and the global data was
especially large for the "Diophantine Equation.” Only in the "Complementary DNA" test on applied
mathematics, the pass rate and average score of the contest participants were higher than those of the
global data. In general, when it comes to test results, the contest participants' performance was lower
than that of the global data. However, in the four items of " Almost Even," "Month N’ Month % Growth
Rate," "Diophantine Equation," and "Complementary DNA," the highest score was 100 for both the
contest participants and the global data, and it is expected that the top-level engineers have as high
knowledge and skills as the global data.

70
(2) Questionnaire Survey
In this study, we decided to conduct a questionnaire survey on the participants515 of the coding
contest held by JICA Uganda office to analyze the ICT industry in Uganda. The purpose of the
questionnaire survey was to collect responses from Ugandan ICT engineers on their perceptions of issues
and career aspirations, to convert qualitative information into quantitative data, and to cross-tabulate the
responses in order to further deepen the analysis of the issues in the Ugandan ICT industry.
An online page for the questionnaire was set up in October 2021, and the URL was sent to the above-
mentioned target audience via email. In November, with the cooperation of Uganda Institute of ICT
(UICT), the questionnaire was also distributed to the students of UICT. The collection period was set
until December 2021, and 100 responses were eventually collected. The gender of the respondents was
89 males and 11 females, with almost 90% of the respondents being male.

11

89

Woman Man

Figure 2-24 Gender of Respondents

(a) Education
The most common answer to the question "What is your final education?" was "University
(Bachelor)" (60 respondents* The numbers in brackets below indicate the number of respondents as
well), followed by "University (Master)" (10) and "Vocational school" (12). From the results of the
questionnaire, it was found that about 80% of the total respondents had received higher education.

70 60
60
50
40
30
20 9 12 10
6
10 2 0 1 0
0
Primary School Lower Secondary (O level)
Upper Secondary (A level) Technical Institute
University (Bachelorʼs degree) Graduate School (Masterʼs degree)
Graduate School(Doctoral degree) None of the above
Others

Figure 2-25 What is your last educational background?

71
 When asked, "Are you able to use the learning and skills you gained at your last educational institution
in your current job?" the majority of respondents answered, "strongly agree"(42) and "agree"(31). In
other words, most of the respondents were satisfied with the educational content of their last educational
institution.

50
42
40
31
30

20
12 10
10 5

0
Strongly agree Agree
Neither agree nor disagree Disagree
Strongly disagree

Figure 2-26 Are you able to use the learning and skills you gained at your last
educational institution in your current job?

The following table shows the results by type of last educational background.

Table 2-35 Are you able to use the learning and skills you acquired at your last
educational institution in your current work? (Type of institution)

Strongly Neither
Agree Disagree Disagree Total
agree agree nor
Primary School 1 1 2
Upper Secondary (A level) 2 4 1 1 1 9
Technical Institute 7 3 2 12
University (Bachelorʼs degree) 23 21 6 7 3 60
Graduate School (Masterʼs degree) 3 3 2 2 10
Graduate School(Doctoral degree) 1 1
None of the above 5 1 6
Total 42 31 12 10 5 100

In response to the question, "In which jobs do you use the skills you acquired at your last educational
institution?", the top answers were "Application development" (56), "Software development" (50),
"Database development" (44), and "Network engineering" (44) with relatively few responses for
"Infrastructure development (hardware configuration design, environment construction and
operation)"(27) and "Data analysis"(28).

72
 56
60 50
50 44 44
40 32
27 28
30
20
9
10
0
Database development
Application development
Software development
Infrastructure development (hardware structure design, building environment and operation)
Network engineering
Data analysis
Consulting work
Others

Figure 2-27 In which jobs do you use the skills you acquired at your last educational
institution?

In response to the question, "Where did you learn coding skills and basic ICT knowledge to work in
the ICT industry?”, the majority of the respondents answered "Online courses"(58) and "Free video
tutorials"(59), suggesting that Ugandan ICT engineers are trying to acquire knowledge from sources
other than their final educational institutions. Internship (34) was also a common response.

70 60 58 59
60
50
40 32 34
30 22 19
20
5 7 5
10
0
University/Graduate school Technical institute
Secondary school Online courses
Private coding school Free video tutorials
Website In-house training
Internship Others

Figure 2-28 Where did you learn coding skills and basic ICT knowledge for your job in
the ICT industry?

When asked, "Have you taken a course or obtained a certificate?" 53 people answered "Yes" to the
question.

73
 3

44
53

Yes No No Answer

Figure 2-29 Have you taken a course or earned a certificate?

Those who answered "yes" were asked, "What courses have you taken and what certificates do you
have? ", the responses were as follows.
・ Google IT Support
・ Udacity
・ Udemy
・ Cisco Certified Network Associate
・ Completion of a course at a university, etc.

In response to the question "How do you want to improve your coding skills and ICT knowledge in
the future?", the most common answers were "taking online courses" (62), "enrolling in a
university/graduate school" (51), and "participating in an internship program" (48). The fact that about
half of the respondents wanted to do an internship showed their willingness to learn ICT through
practical work.

70 62
60 51 48
50
34 37
40
25
30
20
10 3 3
0
Enroll in university/graduate school Take online courses
Enter a coding school Watch free video tutorials
Take an in-house training Take part in an internship program
Do not have any plans Others

Figure 2-30 How would you like to improve your coding skills and ICT knowledge in the future?

74
(b) Occupation/career
The responses to the question "How long have you been working as an ICT engineer?", the answers
were scattered, but the majority of the respondents were engineers with at least 2~3 years of experience.

30

20 20 19
20 16
15

10
10

~ 1 year 1~2 years 2~3 years

3~5 years 5~10 years 10 years ~

Figure 2-31 How long have you been working as an ICT engineer?

In response to the question, "Which is the main company you have worked for the longest?”, the
answers were as follows. The most common answers were "Private companies (employees11~100)"
(24) and "Private companies (employees1~10)" (23). The other most common responses were
"School/University" (16) (Note: students are considered to be included) and "Freelance" (15).

30
23 24

20 15 16
10
10 5
3 4
0 0
0
Private company (1 – 10 employees) Private company (11 – 100 employees)
Private company (101 – 300 employees) Private company (301 - employees)
Freelance Central government
Municipal government Research institute
School/University Others

Figure 2-32 What is your main organization where you have worked the longest?

As for 15 those who were answered "freelance" were asked, "If you work as a freelancer, why did
you choose to become a freelancer?", the answers were as follows. The most common answer was that
"there was no opportunity to work for a company or government agency" (10). The responses suggest
that there are many cases where ICT engineers who are currently working as freelancers seem to be
working as freelancers out of necessity rather than being freelancers proactively.

75
 12 10
10
8
6
4 3

2 1 1
0
0
Salary is better than office workers
Did not have opportunities to engage in companies or government agencies
For improving skills and your ideal career path
Workstyle (working hour, places, etc.) is preferable
Others

Figure 2-33 If you are working as a freelancer, why did you choose to become a
freelancer?

As to the answers to the question "What is your employment status? ", the most common answer was
"full-time employment" (46).

50 46

40

30
21
20 15
12
10 4
2
0
Full-time employed Part-time employed
Internship Student
Freelancer Others

Figure 2-34 What is your employment status?

The results of the survey by type of employer are as follows.

Table 2-36 What is your employment status? (Type of employer)

Full-time Part-time
Internship Student Freelancer Others Total
employed employed
Private company (1 – 10 employees) 13 8 2 23
Private company (11 – 100 employees) 14 5 1 2 2 24
Private company (101 – 300 employees) 3 3
Private company (301 - employees) 7 1 1 1 10
Freelance 1 3 1 10 15
Central government 5 5
School/University 3 2 10 1 16
Others 2 1 1 4
Total 46 21 2 12 15 4 100

The answers to the question "Which of the following ranges is your current average monthly income?"
were as follows. The largest number of 43 respondents answered less than "1,000,000UGX", followed
by "1,000,001UGX~2,500,000UGX"(31). With each increase in the amount, the number of responses

76
became smaller. From the responses to the questionnaire, it was found that most of the ICT engineers in
Uganda are engaged with an income of "less than 1,000,000UGX" (approximately 30,000JPY). On the
other hand, there are a small number of ICT engineers who earn "more than 10,000,001UGX" (3)
(approximately 300,000JPY).

60

43
40
31

20 13
6
3 1 3
0
0
〜1,000,000 UGX 1,000,001〜2,500,000 UGX
2,500,001〜4,000,000 UGX 4,000,001〜5,500,000 UGX
5,500,001〜7,000,000 UGX 7,000,001〜8,500,000 UGX
8,500,001〜10,000,000 UGX 10,000,001 UGX〜

Figure 2-35 Which of the following ranges is your current average monthly income?

The results aggregated by the type of employer are as follows. The ICT engineers with high income
were mostly from private companies or freelancers. There seemed to be no significant trend in terms of
the size of the companies.

Table 2-37 Which of the following ranges is your current average monthly income?
(Type of employer)
1,000,001〜 2,500,001〜 4,000,001〜 5,500,001〜 7,000,001〜
〜1,000,000 10,000,001
2,500,000U 4,000,000 5,500,000 7,000,000 8,500,000 Total
UGX UGX〜
GX UGX UGX UGX UGX
Private company (1 – 10 employees) 11 5 4 2 1 23
Private company (11 – 100 employees) 9 9 4 1 1 24
Private company (101 – 300 employees) 2 1 3
Private company (301 - employees) 6 2 2 10
Freelance 7 4 2 1 1 15
Central government 1 1 3 5
School/University 12 4 16
Others 1 2 1 4
Total 43 31 13 6 3 1 3 100

In response to the question "Which of the following best describes the challenges/barriers in terms of
ICT engineers' capabilities? (Multiple answers are allowed.)", the responses were generally distributed,
but the most common answer was "Insufficient knowledge of the sector/industry" (47), followed by
"Insufficient coding skills" (40) and "Insufficient ability to design system architecture" (40). On the
other hand, there were fewer responses for "outdated coding language and ICT knowledge" (17).

77
 50 47
40 40
37
40 32 34 32
30 24 23
17
20
8
10

0
Coding ability is not enough.
Coding languages and ICT knowledge are old.
Ability to consider about the solutions (service contents, UI/UX, etc.) is not enough.
Ability to define system requirement is not enough.
Ability to design system architecture is not enough.
Skills of methodologies to conduct tasks (quality managment methodology etc.) is not enough.
Knowledge about sectors/industries is not enough.
Ability to conduct a project as a project member is not enough.
Ability to manage a project as a project manager is not enough.
Communication skill with clients or other project members is not enough.
Others

Figure 2-36 Which of the following best describes the challenges/barriers in terms of
ICT engineers' capabilities?

In response to the question "Which of the following best describes why it is difficult for ICT engineers
to improve their skills? (Multiple answers are acceptable.)", the answers were also dispersed throughout
the survey, but the most common answer was "Limited opportunities to learn practically through actual
projects" (84). On the other hand, relatively few respondents answered that "there are few appropriate
educational institutions and teachers" (37).
In order to improve the skills of Ugandan ICT engineers, accumulating practical experience through
internships and pilot projects is considered to be a useful measure. On the other hand, the survey revealed
that relatively few engineers are dissatisfied with the ICT education in Uganda. However, since the
answers are based on the Ugandan ICT engineers themselves, a more objective evaluation of ICT
education in Uganda is necessary.

100
84
80 65
55
60 50
37 41
40

20 5
0
Limited opportunities to learn practically thorough actual projects.
There is little appropriate educational institutes and teachers.
Donʼt have enough money to learn.
There is little ICT infrastructure (internet environment etc.) for learning.
Limited opportunity to learn about sectors/industries.
Limited opportunity to conduct projects with a team.
Others

Figure 2-37 Which of the following best describes why it is difficult for ICT engineers
to improve their skills?

78
 In response to the question "Which of the following best describes the challenges/barriers for ICT
engineers/companies to promote offshore software development business from overseas?", the most
common response to the question was "ICT infrastructure (hardware, Internet environment, etc.) is not
sufficiently developed" (56). The answers to this question were also scattered across the board,
indicating the importance of multifaceted, rather than one-dimensional, efforts to promote offshore
software development in Uganda.

100

80

56
60 50
47
43 41 40
40 33

20
1
0
ICT engineers' quality is low.
ICT companies' management ability is not enough.
It is difficult to get hold of enough number of ICT engineers to assign offshore development work from overseas.
ICT companies are too small to get offshore development business from overseas.
There is no opportunity to have business matchings with overseas companies.
ICT engineers/companies do not have enough track record.
ICT infrastructure (hardware, internet environment, etc.) is not facilitated enough.
Others

Figure 2-38 Which of the following best describes the challenges/barriers for ICT
engineers/companies to promote offshore software development projects from
overseas?

The answers to the question "Where would you like to work in the future?", the most common answer
was "a company I founded" (45), followed by "a private company" (22). On the other hand, 3
respondents answered "work as a freelancer without belonging to an organization".

50 45

40

30
22
20 15
8 7
10 3
0

Private company
The company that you established
Administrative agencies (Central/Municipal government)
Educational/Research Institute
Not belonged to any specific institutions and work as a freelancer
Others

Figure 2-39 Where do you want to work in the future?

79
 The responses to the question "Which of the following best describes the reason for your answer to
the previous question ("Where would you like to work in the future?")?" were as follows. The answers
were dispersed throughout the survey. Many respondents answered "Because I thought I could be of
help to others" (72) and "To improve my skills" (60), while slightly fewer answered "Because I prefer a
work style where I can freely choose my working hours and work location" (42) and "Because I can
lead a stable life" (31). The tendency of Ugandan ICT engineers to place importance on social
contribution and career development was apparent.

80 72
70 60
60
48 49
50 42 44
40 31
30
20
6
10
0
To get higher income To improve your skills
To keep preferable workstyle (working house, place, etc.) To be helpful to people and society
To improve your management skills For stable lifestyle
To make the thing you like into a job Others

Figure 2-40 Which of the following best describes the reason for your answer to the
previous question ("Where do you want to work in the future?")? Which of the
following best describes the reason for your answer to the previous question ("Where
would you like to work in the future?")?

(c) Infrastructure
The answers to the question "Where do you mainly use the Internet for work?" were as follows.
Almost half of the respondents answered "Home"(52) and almost half answered "Office/University"(44).

60
52
50 44

40

30

20

10 4
0 0
0

Home Office/University Café Library Others

Figure 2-41 Where do you mainly use the Internet for work?

In response to the question, "Which Internet connection do you use?”, the most common answer was

80
"Wireless (cell phone tethering, etc.)" (60), followed by "Fixed-line (optical fiber)" (28). (Note: The
term "wireless" probably includes cases where people have converted from fixed-line to wireless.
Originally, we should have checked the number of engineers who do not have a fixed line but use mobile
tethering, etc. to connect to the Internet.)
In terms of the type of fixed line, optical fiber was the most common, indicating that few engineers
were using older lines such as ISDN or ADSL.

70 60
60
50
40
28
30
20
7
10 1 2 2
0
Fixed-line network (ISDN) Fixed-line network (ADSL)
Fixed-line network (fiber-optic internet) Wireless (Mobile tethering etc.)
Wireless network at café etc. Others

Figure 2-42 Which Internet connection do you use?

The results of the survey by location are as follows. In offices and universities, many ICT engineers
use fixed lines, mainly optical fiber, to connect to the Internet, while at home, many use cell phone
tethering to connect to the Internet.

Table 2-38 Which Internet connection do you use? (by location)

Fixed-line Fixed-line Fixed-line Wireless Wireless
network network network (Mobile network at Others Total
(ISDN) (ADSL) (fiber-optic tethering café etc.
Home 1 1 3 47 52
Office/University 5 24 12 2 1 44
Others 1 1 1 1 4
Total 7 1 28 60 2 2 100

In response to the question "What best describes your challenges with using the Internet?", the
answers were as follows. The most common answer was "Internet service charges" (52), followed by
"Internet communication speed" (36).

81
 60 52
50

40 36

30

20
7 5
10

Internet transmission speed Internet service charge

Internet coverage Others

Figure 2-43 What best describes your challenges with using the Internet?

The following table shows the results by location.

Table 2-39 What best describes your challenges with using the Internet? (by location)
Internet Internet
Internet
transmissio service Others Total
coverage
n speed charge
Home 16 28 4 4 52
Office/University 20 20 3 1 44
Others 4 4
Total 36 52 7 5 100

As to the answers to the question "Which of the following development cloud services have you used
for your work?", Google Cloud Platform"(67) was the most common answer, with about 70% of the
total respondents having used it. On the other hand, there were a reasonable number of respondents who
said they had never used it(23).

80
67
70
60
50
37
40
30 22 23
20 12
5
10
0
Amazon Web Service Google Cloud Platform
Microsoft Azure IBM Cloud Private
Never used Others

Figure 2-44 Which of the following development cloud services did you use for your
work?

82
 Overview of ICT Companies in Uganda and Analysis of
their Challenges

Table 3-1 shows the results of the analysis of what activities have been certified by NITA-U for
companies that have received certification.
According to the Japanese 2019 Basic Survey on the Information and Communications Industry,
there were 2,969 companies in the software industry in FY2019 in Japan, the number of Ugandan ICT
companies is roughly one-tenth the number of Japanese.
For reference, according to the 2016 Economic Census - Activity Survey, there are 6,826 companies
in the electrical machinery and apparatus wholesale industry and 3,083 companies in the electrical
machinery and apparatus repair industry.
The number of companies in Wholesale is 134, which is about 2% of the number in Japan. 186
companies are engaged in repair of computers and personal and household good, or repair and
installation of machinery and equipment, or both. The number of companies engaged in repair of
computers and personal and household good or repair and installation of machinery and equipment, or
both, is 186, which is about 6% of the number of companies in Japan.
Although the number of companies in programming and consulting (computer programming,
consultancy and related activities) is smaller in absolute terms than in Japan, it is higher than in other
fields of activity as a percentage of industry.

Table 3-1 Fields of Companies Certified by NITA-U

Field Number of companies
Retail 262
Computer programming, consultancy and related activities 238
Repair of computers and personal and household good 148
Wholesale 134
Telecommunications 133
Repair and installation of machinery and equipment 120
Information Services 105
Construction 87
Professional, scientific and technical activities 61
Other professional, scientific and technical activities 47
Publishing 35
Monitoring and maintaining security systems devices 19
Manufacture of computer, electronics and optical products 11
Education 6
The total number of companies is not meaningful because many companies are certified in multiple
fields of activity.
Source: NITA-Uwebsite

83
 ICT companies exporting their products are mentioned in the previous section. However, according
to the information obtained from the interview with the Ministry of ICT, the contents of exports are
mainly device equipment that are assembled in Uganda and BPO services such as call centers.
In relation to the software contract development companies, which are the main target of this survey,
there do not seem to be that many companies with a track record of overseas transactions. The companies
with a track record of overseas transactions found in this survey are as follows.

Table 3-2 Companies Has Experience of Getting Projects from Foreign Companies,
Found in This Survey
Company Achievements in overseas transactions
Kanzu Code The company has customers in three African countries and the
https://kanzucode.com/ United States, and undertakes custom systems. Contracts from
U.S. companies are the main business.
The company has done business with Swiss-based Agri-insuratech
startup PLA (Kenya) and US-based Healthcare EC startup Kasha
(Rwanda).
Acerat Limited The main business is a back-end contract for a Norwegian
http://acerat.net/ healthtech SaaS company, which has been in business for more
than two and a half years, and has been gradually taking on front-
end projects since 2021.
Service Cops In 2021, the company will celebrate its 10th anniversary. Currently
https://servicecops.com/ one of the largest domestic development companies in Uganda
with 14 full-time engineers.
N Micros We have experience with contract development from overseas
https://nmicros.com/ companies in Africa such as Zambia. Mainly receives orders from
within Uganda, and has received contract development requests
from a variety of companies including insurance, finance, tobacco,
and medical equipment wholesalers.
Source: Field survey by the research team

The interviews with local ICT engineers revealed that most Ugandan ICT engineers do not contract
of software development projects with foreign companies, but rather take on work from Western
companies on a freelance basis.

84
Analysis of years of experience
Of the 540 applicants for the programming contest conducted by the JICA Uganda office ("African
Advanced Talent Programming Contest"), 515 agreed to statistical analysis. 515 occupations were
analyzed, and the number of people excluding students and interns was 373, 176 were in full-time
employment, 72 were in part-time employment, and 114 were freelancers (including personnel who
were also students).
It is estimated that about 2 million freelances work in Japan38. Of these, 6.6% are in the information
and communication industry (for reference, 4.0% work as a sideline)39. If we assume that the number of
ICT human resources in Japan is about 1 million, the ratio of freelance workers in their main occupation
to ICT human resources in Japan is estimated to be about 13%.
In comparison, the freelance rate in Uganda, estimated from the participants of the programming
contest, is 114 out of 373, or 30.6%. The ratio is more than twice as high as that of Japan, but it is not
an order of magnitude higher.

Table 3-3 Occupations of Participants in Programming Contests

Programming experience
No
Current employment status 1 2 3 4 5 6 7 8 + experience Total
Full time employment 13 26 36 36 21 7 7 26 3 175
Freelancer 17 22 33 9 8 7 1 11 5 113
Student 25 14 6 2 1 43 91
Part time employment 7 17 16 12 8 3 1 5 3 72
Not Employed 13 7 3 2 7 2 15 49
Self Employed 1 1 2 4
Consultant 1 1
Contract 1 1
Doing my own projects 1 1
Entrepreneur at Earl
communications 1 1
Full time employment and Student 1 1
Intern 1 1
Software Developer Intern 1 1
Startup Founder 1 1
Student and freelancer 1 1
Tech Entrepreneur 1 1
Volunteer at openmrs.org 1 1
Total 76 87 96 63 47 17 11 47 71 515
Source: Created based on programming contest materials

38 https://www.kantei.go.jp/jp/singi/zensedaigata_shakaihoshou/dai9/sankou.pdf
39 In addition, according to a survey commissioned by the Small and Medium Enterprise Agency, "Survey on the Actual
Status of Business Activities of Small Businesses: Freelance Business Survey," January 2016, Japan Applied Research
Institute, Inc. found that system consultants and software creators accounted for 17.7% of freelancers.

85
 337 engineers have LinkedIn profiles and 296 engineers have GitHub profiles, which is a very large
number.

On the other hand, since the software development industry in Japan has a long history, the majority
of the engineers have more than 10 years of experience. On the other hand, in terms of age composition,
60% of the workforce is under 40 years old.

Figure 3-1 Ratio of Years of Experience Among Software Engineers in Japan

Source: Basic Survey on Wage Structure, 2020

Figure 3-2 Age of Software Engineers in Japan

Source: Basic Survey on Wage Structure, 2020

<Problems with the programming language >

The following are the results of the statistical analysis of the programming contests mentioned above
with respect to the programming languages acquired by the agreed participants.
As a broad trend, full-time and freelance engineers and those employed part-time are most likely to
learn JavaScript, followed by Python and PHP at the same level, with Java and C#/C#, .NET being the
next most common.

86
 For students, the most commonly learned language will be Python, but the general trend is the same
as for full-time and freelance engineers, etc.

Table 3-4 Programming Languages Learned by Participants in Uganda's Programming

Contest
Current employment status Javascript Python PHP Java C#/C#.NET C, C++ Ruby HTML
Full time employment(n=175) 61% 49% 49% 39% 29% 17% 5% 1%
Freelancer(n=113) 65% 53% 54% 28% 23% 14% 5% 3%
Student(n=91) 49% 51% 29% 34% 30% 29% 1% 3%
Part time employment(n=72) 63% 47% 47% 35% 31% 26% 1% 1%
Not Employed(n=49) 47% 27% 41% 35% 31% 20% 2% 2%
Self Employed(n=4) 50% 25% 0% 75% 0% 0% 0% 0%
Others(n=11) 82% 18% 45% 36% 0% 0% 0% 0%

*For statistical purposes, personnel who are also students are included in the "Others" category.
Source: HIVE Colab (JICA Uganda Office)

Similarly, in Japan, the percentage of engineers who have mastered Java, JavaScript, C#. NET, PHP,
and Python is high. In the case of Japan, it is thought that Java occupies the first place because Java is
used very often in practice. In addition, as mentioned above, since many of the engineers are older, it is
assumed that the percentage of engineers who have mastered older programming languages such as VB
and COBOL is higher.

Table 3-5 Programming Language Skills of Japanese

Language Ratio Language Ratio

Source: https://prtimes.jp/main/html/rd/p/000000009.000053672.html

The skills acquired by new graduates in Japan are as follows. Compared to the programming
languages acquired by Ugandan students, the ratio of Java and C/C++ is higher.

87
 Language

Others

**This figures are created based on the data Levtech has, The
result may be different from the trend in ICT engineers market

Figure 3-3 Skills Acquired by New Graduates in Japan

Source: Levtech's data (https://prtimes.jp/main/html/rd/p/000000271.000010591.html）

Next, in order to analyze the possibility of offshore development, we compared the job opportunities
in Japan by programming language and the programming languages learned by the participants of the
programming contest mentioned above. Nojov is a website that provides cross-sectional analysis of
information from multiple job sites, and we used its information in this study.

・ EN:TRY
・ GeekOut
・ ITPRO Partners
・ forkwell jobs
・ paiza new graduates
・ paiza career change
・ Levtech Career
・ Levtech Freelance

88
 C

Figure 3-4 Job Openings in Japan by Programming Language

Source: nojovhttps://nojov.kou-pg.com/https://nojov.kou-pg.com/)

New projects for types of programing languages New projects for types of programing languages
(for full time employers) (for freelancers)
FY2019 FY2018 FY2019 FY2018

Others Others

**This figures are created based on the data Levtech has, The **This figures are created based on the data Levtech has, The
result may be different from the trend in ICT engineers market result may be different from the trend in ICT engineers market

Figure 3-5 Job Openings in Japan by Programming Language(Fulltime and Freelancer)

Source: Levtech's data

89
 Java and Python seem to be in high demand not only in Japan but also in North America . There is
little difference in the demand for programming languages between countries, and it can be said that the
demand for languages similar among Japan, North America and Uganda.

Table 3-6 Skills in High Demand in North America

Skills 2019 2014
SQL 21.90%. 23.60%.
Java 20.80%. 19.70%.
Python 18.00%. 8.10%.
Linux 14.90%. 14.90%.
JavaScript 14.50%. 12.40%.
Amazon Web Services (AWS) 14.20%. 2.70%.
C++ 10.70%. 10.60%.
C language 10.30%. 9.30%.
C# 9.30%. 8.30%.
.NET 8.40%. 9.90%.

Source: Indeed (https://spectrum.ieee.org/view-from-the-valley/at-work/tech-careers/sql-java-top-list-

of-most-indemand-tech-skills)

The monthly income for ICT engineers in Uganda is lower than in Japan. In Japan, the average
monthly salary for a person with 5 to 9 years of experience is 382,000 yen per month, depending on age.
In Uganda, on the other hand, it ranges from 100,000 yen/month to 250,000 yen/month. However,
considering that the salary of a manager (professional/engineer) in Vietnam is $1,550 to $2,355 after 5
years.40 Ugandan salary is the same level as Vietnam. The incentive to switch the offshore destination
from Vietnam to Uganda is not that high because the salary of ICT engineers in Uganda is not so low
compared to those in Vietnam. This might be one of the reason for difficulty of Ugandan companies to
get offshore opportunity from the other countries.

40 https://furucrm.com/blog/VietNam-ITengineer-AverageSalary

90
 Table 3-7 Monthly Income of Software Engineers in Uganda
Work experience Per capita cost per month
for software development Current monthly income
projects in Uganda
A 200-3,000USD 1,000 USD
11 years
B 800-2,000USD 1,200USD/month
9 years
3-4000USD/month（Top
C Full-time employee 8 foreign companies) 2000USD/month
years 800-1000USD (average)
2000-2500USD(Senior),
D -
- 1500USD(Junior)
500USD(Junior level)
4,000USD/month/including
E 1,000-1,500USD(Middle
commission
3 years and 4 months level)
1,500USD/month (receive a range
F - of 800-2,000USD depending on
4 years the job)

Table 3-8 Monthly Income of Software Engineers in Japan

Total years
10 to 14 More than
Classification 0 years 1 to 4 years 5 to 9 years of
years 15 years
experience
19 years old 173 225 - - - 197
20 - 24 years old 220 270 281 - - 249
25 - 29 years old 252 308 339 390 284 311
30 - 34 years old 304 336 384 408 333 380
35 - 39 years old 443 477 424 420 445 433
40 - 44 years old 394 461 452 469 471 468
45-49 years old 383 556 447 455 488 485
50 - 54 years old 296 473 397 475 518 509
55 - 59 years old 763 575 529 568 541 546
60 - 64 years old 250 263 548 346 419 390
65-69 years old 213 - - - 292 290
Age 70 and up - - - - 244 244
Whole 248 323 382 428 488 401
From the Basic Survey on Wage Structure, 2020, the estimated annual salary was calculated as the
following: Prescribed salary x 12 months + annual bonus and other special salaries, and then divided by
12.
Source: Calculated by the research team based on the 2020 Basic Survey on Wage Structure

91
 Explore Potential Partners in Japan
We conducted a survey of potential collaboration partners in Japan for the promotion of the ICT
industry in Uganda. First, we started to compile a long list of higher educational institutions, industry
associations, and local governments that are interested in promoting the ICT industry in Uganda and
that could be potential partners. A web search was conducted using keywords such as IT/ICT, ABE
initiatives, Africa, collaboration, universities, industry associations, TICAD, international human
resource exchange, advanced foreign human resources, etc. The long list consisting of 61 local
governments and their related organizations, 14 higher educational institutions, and 6 industry
associations was developed.
The long list includes 61 local governments and their related organizations, but few of them are
involved in the overseas expansion of local companies or the acceptance of international human
resources. Most of them are involved in host town initiatives or the acceptance of foreign students. Some
industry organizations related to ICT and international cooperation were also included, but all of them
were limited to giving lectures related to Africa, and only a few of them provided support related to
actual business. As for the educational institutions, we included in the long list those universities that
have accepted a large number of ABE Initiative students and those that have been selected for the
FY2020 Inter University Exchange Project (an initiative of the Ministry of Education, Culture, Sports,
Science and Technology). Some of these universities have set up offices in Africa as part of their
academic research, and it became clear that there are universities that are making efforts for international
academic exchange with Africa.
The following 11 extraction methods were used to create the long list.
① Google search term: IT, Africa business support, Local government
② Google search term: TICAD-related local government
③ Google search term: Africa, Partnership, Local government
④ Google search term: Africa, Local government, Cultural exchange
⑤ Google search term: Advanced international human resources, Local government
⑥ Google search term: IT, Local government, Support for overseas expansion
⑦ Google search term: International human resources exchange, Business, Local government
⑧ Google search term: IT, ICT, ABE Initiative
⑨ Google search term: Africa, Collaboration, Exchange, University
⑩ Google search term: Africa, Industry association, IT
⑪ Selection results for FY2020 Inter University Exchange Project

92
 Table 4-1 Longlist of Potential Partners
No. Organization Extract Details of the Initiatives URL
ion
Method
1 Kobe City, Hyogo ① Expand economic relations in the ICT field with Rwanda https://www.city.kobe.lg.jp/
Prefecture a23965/shise/kekaku/kika
kuchosekyoku/rwanda.htm
l
2 Yokohama City, ① ② Support local companies’ business development in Africa https://www.city.yokohama
Kanagawa Prefecture .lg.jp/city-
info/seisaku/kokusai/kokus
ai/Africa/africabusinesstop
.html
3 Okayama City, ① “From Okayama to Africa! Challenges of Private Companies https://www.jica.go.jp/chug
Okayama Prefecture and SDGs" was held. Okayama City has been selected as oku/topics/2019/ku57pq000
"SDGs Future City. 00latt2.html
4 Izumisano City, Osaka ③ Signed a sister city agreement. The exchange started when https://www.city.izumisano
a towel manufacturer in the city commercialized organic .lg.jp/kakuka/kyoudou/jichi
cotton from Uganda. /menu/kokusai_kouryu/yu
ukou.html
5 Tokyo City ③ Signed a sister city agreement. http://www.clair.or.jp/j/exch
ange/shimai/countries/
6 Hita City, Oita ③ Signed a sister city agreement. http://www.clair.or.jp/j/exch
Prefecture ange/shimai/countries/
7 Seto City, Aichi ③ Signed a sister city agreement. http://www.clair.or.jp/j/exch
Prefecture ange/shimai/countries/
8 Hachimantai City, ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Iwate Prefecture The exchange started in 2016 when Rwanda cultivated cut singi/tokyo2020_suishin_h
flowers of "Yasudai Rindo" grown in the city. City staff and onbu/hosttown_suisin/kiho
growers were dispatched to Rwanda. The city intends to n_suisintyousa/pdf/3_seika
deepen the exchange beyond agriculture. houkoku.pdf
9 Nagai City, Yamagata ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture Mutual visits by the Tanzanian ambassador to Japan and the singi/tokyo2020_suishin_h
mayor, dispatch of citizen delegations, and participation by onbu/hosttown_suisin/kiho
Tanzanian athletes in full marathons. Aim to nurture young n_suisintyousa/pdf/3_seika
people who can play an active role on the world stage. houkoku.pdf
10 Minamisoma City, ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Fukushima Prefecture After the Great East Japan Earthquake, the Ambassador of singi/tokyo2020_suishin_h
Djibouti to Japan visited the town and donated money, which onbu/hosttown_suisin/kiho
led to the registration of the town as a host town. Dispatched n_suisintyousa/pdf/3_seika
karate instructors and invited Djiboutian children for houkoku.pdf
mutual exchange. Aim to develop human resources with a
rich international sense.
11 Kasama City, Ibaraki ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture Donation of fire trucks, participation in the city half singi/tokyo2020_suishin_h
marathon, and other exchanges. Fostering athletes who can onbu/hosttown_suisin/kiho
play an active role in international competitions. n_suisintyousa/pdf/3_seika
houkoku.pdf
12 Maebashi City, Gunma ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture In support of JICA's "Promoting Peace through Sports" singi/tokyo2020_suishin_h
program, we aim to support training camps for South onbu/hosttown_suisin/kiho
Sudanese athletes and promote exchanges. n_suisintyousa/pdf/3_seika
houkoku.pdf
13 Mishima Village, ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Kagoshima They are deepening exchanges through djembe (percussion singi/tokyo2020_suishin_h
instrument). onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
14 Ninohe City, Iwate ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
15 Moriguchi City, Osaka ④ Host town to support African countries. http://www.kantei.go.jp/jp/
singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
16 Kitanakagusuku ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Village, Okinawa singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
17 Okinawa Prefecture ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Nakagusuku Village singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika

93
No. Organization Extract Details of the Initiatives URL
ion
Method
houkoku.pdf
18 Hyuga City, Miyazaki ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
19 Sakura City, Chiba ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
20 Edogawa Ward, Tokyo ④ Host town to support African countries. http://www.kantei.go.jp/jp/
singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
21 Satte City, Saitama ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
22 Ishinomaki City, ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Miyagi Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
23 Kamisu City, Ibaraki ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
24 Shibukawa City, ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Gunma Prefecture singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
25 Kitamoto City, ④ Host town to support African countries. http://www.kantei.go.jp/jp/
Saitama Prefecture singi/tokyo2020_suishin_h
Fukushima Prefecture onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
26 Fukushima Prefecture ④ Host town to support African countries. http://www.kantei.go.jp/jp/
singi/tokyo2020_suishin_h
onbu/hosttown_suisin/kiho
n_suisintyousa/pdf/3_seika
houkoku.pdf
27 Sapporo city, Hokkaido ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
28 Sendai City, Miyagi ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
29 Saitama City, Saitama ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
30 Chiba City, Chiba ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
31 Matsudo City, Chiba ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file

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No. Organization Extract Details of the Initiatives URL
ion
Method
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
32 Shinjuku Ward, Tokyo ⑤ Establishment of a consultation service to support the https://www.mhlw.go.jp/file
employment of foreign people and international students in /04-Houdouhappyou-
professional and technical fields. 11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
33 Yokohama City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Kanagawa Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
34 Kanazawa City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Ishikawa Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
35 Shizuoka City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Shizuoka Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
36 Nagoya City, Aichi ⑤ Establishment of a consultation service to support the https://www.mhlw.go.jp/file
Prefecture employment of foreign people and international students in /04-Houdouhappyou-
professional and technical fields. 11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
37 Tsu City, Mie ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
38 Kyoto City, Kyoto ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
39 Osaka City, Osaka ⑤ Establishment of a consultation service to support the https://www.mhlw.go.jp/file
Prefecture employment of foreign people and international students in /04-Houdouhappyou-
professional and technical fields. 11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
40 Kobe City, Hyogo ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
41 Okayama City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Okayama Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf

95
No. Organization Extract Details of the Initiatives URL
ion
Method
42 Hiroshima City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Hiroshima Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
43 Fukuoka City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Fukuoka Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
44 Nagasaki City, ⑤ Establishment of a consultation service to support https://www.mhlw.go.jp/file
Nagasaki Prefecture international students in finding job. /04-Houdouhappyou-
11655000-
Shokugyouanteikyokuhak
enyukiroudoutaisakubu-
Gaikokujinkoyoutaisakuka
/486174.pdf
45 Shimane Prefecture ⑤ Supporting the internationalization of Ruby, a computer https://www.city.yonago.lg.j
language originating in Matsue City, and the IT industry in p/20703.htm
the San'in region (Nakaumi, Shishido-ko, and Daisen areas).
Through the network of the AOTS Alumni Association in
Kerala, India (https://www.aots.jp/globalization-
support/acceptance/), we invited local Kerala government
officials, chamber of commerce officials, IT company
executives, and media representatives to Japan. Conducted
literature, questionnaire, and hearing surveys in Japan and
India to investigate the possibility of accepting foreigners,
and implemented a work experience program (short-term
internship) for Indian IT personnel visiting Japan.
As of March 2019, five Indian students have already been
employed by IT companies in the region.
46 Tottori Prefecture ⑤ The same support is being provided as in No.45 Shimane https://www1.city.matsue.s
Prefecture. himane.jp/shisei/kouhou/h
oudou/2017/9/1767.html
47 Tochigi Prefecture ⑥ Conducted a survey on international economic exchange in https://www.pref.tochigi.lg.
Tochigi prefecture to understand the current status of jp/f04/work/shoukougyou/k
import/export and overseas expansion of companies in the okusaikeizai/2020kokusai_
prefecture. Support for overseas business expansion. keizai_kouryu_chousa.htm
l
48 Tochigi Prefecture ⑥ Established a website to support the overseas expansion of https://www.pref.tochigi.lg.
small and medium sized enterprises. jp/f04/kaigaitenkai.html
49 Gunma Prefecture ⑥ The portal site for regional diplomacy provides information https://www.pref.gunma.jp/
related to support for overseas business development, 07/c3600166.html
exchange with overseas countries, support for foreign
residents, other related information (mainly in Vietnam),
and information on global human resource development.
50 Gunma Prefecture ⑥ Small and Medium Enterprise Power Up Fund: Provides https://www.pref.gunma.jp/
necessary funds to small and medium enterprises that 06/g0910018.html
intend to expand their business overseas, such as developing
sales channels in overseas markets.
51 Kanagawa Prefecture ⑥ International Business Promotion Project http://www.pref.kanagawa.
(1) Introduction of companies in the prefecture by industry jp/docs/pw3/index.html
in English
(2) Guide to measures to support overseas business
development for small and medium-sized companies in the
prefecture
(3) A collection of case studies of SMEs in the prefecture.
(4)Seminars on overseas business development based on
agreements concluded with private financial institutions and
human resource companies.
52 Kawasaki city, ⑥ Support for developing overseas sales channels. In order to https://www.city.kawasaki.
Kanagawa Prefecture support the overseas expansion of companies in the city, we jp/280/soshiki/6-2-0-0-
hold overseas investment seminars, support participation in 0.html
overseas exhibitions, and dispatch mission teams overseas.
Promotion of global development support.
53 Kawasaki city, ⑥ It provides a one-stop service for the overseas development https://www.kawasaki-
Kanagawa Prefecture of companies in the city, offering individualized support for net.ne.jp/kobs/index.php
Kawasaki Overseas overseas development, such as examining the possibility of
Business Support overseas development, developing overseas sales channels,
Center (KOBS) and examining overseas development strategies, according
to the stage of overseas development of each company, as well

96
No. Organization Extract Details of the Initiatives URL
ion
Method
as providing information on companies in the city that have
needs for overseas development.
54 Kawasaki city, ⑥ The Kawasaki Green Innovation Cluster was established. https://www.kawasaki-
Kanagawa Prefecture The Kawasaki Green Innovation Cluster is a network of gi.jp/gi-2-5/
industry, academia, government, and private sectors
working together to improve the environment, promote
industry, and contribute to the international community to
create a new society. In addition, it supports the overseas
development of member companies by providing 1)
consultation for utilizing the policies of Kawasaki City and
support organizations, 2) information on overseas
environmental needs, and 3) support for business creation
utilizing Kawasaki City's accumulated environmental
technologies, administrative knowledge, and know-how.
55 Hamamatsu City, ⑥ Established the Shizuoka International Business http://www.siba.or.jp/about
Shizuoka Prefecture Association (SIBA) as an external organization to promote us/
Shizuoka economic exchange. The SIBA supports the overseas
International Business business development of small and medium-sized companies
Promotion Association in Shizuoka City by concluding memorandums of
understanding with overseas government organizations and
promoting mutual economic exchange. So far, SIBA has
concluded memoranda with Thailand, Vietnam, and
Indonesia.
56 Hamamatsu City, ⑥ Hamamatsu City supports companies that aim to expand https://www.city.hamamats
Shizuoka Prefecture their business overseas. By supporting small and medium- u.shizuoka.jp/sangyoshink
sized enterprises (SMEs) that are trying to capture overseas o/kaigai-main.html
demand and revitalize their domestic business, Hamamatsu
City aims to ensure employment and sustainable
development of the local economy. (Overseas Business
Support Desk established)
57 Kyoto City, Kyoto ⑥ JETRO Kyoto, Kyoto Prefecture, Kyoto City, Kyoto Chamber https://www.kyoto-obc.jp/
Prefecture of Commerce and Industry, and other organizations have
Kyoto Overseas established a center to provide overseas business support.
Business Center Office
58 Hyogo Prefecture ⑥ The Hyogo Overseas Business Center is an organization https://www.hyogo-
Hyogo Overseas established by Hyogo Prefecture within the Hyogo Industrial kaigai.jp/
Business Center Revitalization Center as a general contact point to support
the overseas expansion of companies in Hyogo Prefecture.
The Hyogo Overseas Business Center is a one-stop service
organization to help companies expand their business
overseas.
59 Fukui Prefecture ⑦ Acceptance of technical trainees: Since 1980, we have https://www.pref.fukui.lg.j
accepted technical trainees from Brazil, Argentina, China, p/doc/kokusai/giken.html
Bangladesh, the Philippines, Honduras, Tanzania, and
Ethiopia. (There has been no acceptance from Tanzania and
Ethiopia since 1983.)
60 Fukui Prefecture ⑦ Operation of Fukui Global Business Plaza, a consultation https://www.pref.fukui.lg.j
service for companies in Fukui Prefecture on overseas p/doc/kokusai/kokusaika-
business. genjo_d/fil/011.pdf
https://www.pref.fukui.lg.j
p/doc/kokusai/kokusaika-
genjo.html
61 Ehime Prefecture ⑦ The 1st Liaison Conference on Promoting Employment and https://www.pref.ehime.jp/
Coexistence of Foreign Human Resources in Ehime h30580/gaikokujinzai/kyou
Prefecture for 2020 gikai2-1.html
In order to facilitate the acceptance and employment of
foreign human resources in companies in Ehime Prefecture,
as well as to enhance the living environment of foreign
human resources and promote coexistence with local
residents, Ehime Prefecture shared information with the
national government and private organizations on issues
related to securing the labor force and daily life, which are
expected to increase in the future, and discussed
countermeasures.
62 International ⑧ The number of ABE Initiative students accepted is very high. https://www.iuj.ac.jp/jp/abo
University of Japan Courses related to DX have been established. ut/
63 Tokyo Institute of ⑧ Graduate School of Engineering, Department of Information https://educ.titech.ac.jp/ict/
Technology and Communication (Master's Program), ABE Initiative education/ict_graduate/
students are accepted.
64 Japan-Africa ⑨ A network of Japanese universities, institutions, and
Academic organizations interested in Africa, with the aim of expanding
Network（JAAN） support for academic exchange, including two-way student
exchange, with African countries.
65 Kopernik Japan, Inc. ⑨ Commissioned by the World Bank, the project "Pilot for
Building Partnerships between Japanese Private Companies

97
 No. Organization Extract Details of the Initiatives URL
ion
Method
and African Universities - Online Product Development and
Market Development through Technology Collaboration"
started in April 2021, utilizing the Development Policy and
Human Resources Development Fund (PHRD) established
by the Japanese government at the World Bank. The project
targets University of Ghana, Moi University, and Nelson
Mandela African Institution of Science and Technology.
66 Kumamoto University ⑨ There are Sudanese and Tanzanian offices.
67 Kobe Institute of ⑨ Focusing on Rwandan ICT human resource development.
Computing; Graduate
School of Information
Technology
68 Keidanren (Japan ⑩ Involvement in TICAD.
Business Federation)
69 Software Association ⑩ Organizing events related to Africa. https://www.saj.or.jp/comm
of Japan ittee/kokusai/index.html
70 Japan Users ⑩ Organizing events related to Africa. https://juas.or.jp/news/405
Association of 1/
Information Systems
71 Information ⑩ Making policy proposals. https://www.itrenmei.jp/
Technology Federation
of Japan
72 Utsunomiya ⑪ Program for Developing Human Resource to Contribute to
University SDGs by Merging African Potential and Japanese Scientific
Technology
73 Yamaguchi University ⑪ Veterinarian Training Program Responsible
for Infectious Disease Control
to Solve One Health Problem in Asia and Africa
74 Hokkaido University ⑪ International Veterinary and Conservation Medicine
Education program.
Hokkaido University is in charge of the Africa and Sub-
Saharan Africa region at the Japan Student Services
Organization (JASSO), Overseas Study in Japan Division.
Hokkaido University established the Lusaka office in
Zambia.
75 Akita University ⑪ An innovative program for development of core human
resources for smart mining to lead sustainable resource
development in Southern Africa.
76 Kyushu University ⑪ The same project as No.75 Akita University is being
implemented.
77 Hiroshima University ⑪ Triangular Study Abroad Program for Reciprocal
Partnership with North and Sub-Saharan Africa
78 Nagasaki University ⑪ Planetary Health Africa-Japan Strategic and Collaborative
Education (PHASE) Program. The university has an office
in Kenya.
79 Tokyo University of ⑪ Global Agri-Nutrition Leaders Program.
Agriculture
80 Tokyo University of ⑪ Innovative Africa: Educational Networking Programs for http://www.tufs.ac.jp/iafp/p
Foreign Studies Human Resource Development in Africa SDGs. rogram-ja/
The Center for Contemporary African Area Studies at TUFS,
established in 2017, will work to promote mutual exchange
of research and education with universities in African
countries.
81 Kyoto University ⑪ The same project as No.80 Tokyo University of Foreign
Studies is being implemented.

Source: Survey Team

Next, from the long list, we approached higher educational institutions, industry organizations, and
local governments that we thought were particularly relevant to the promotion of the ICT industry in
Uganda, and conducted interviews with the following organizations that expressed interest in
collaborating with Uganda.

98
 Table 4-2 Interviewed Organizations
Name of Type of Route Date of Interviewee
organization organization implementation
International University Inquired through 2021/10/12 Vice President
University of Japan their website Hiroshi Kato
Matsue Industrial Local Inquired through 2021/10/13 Director Otani,
Support Center government their website Ms. Shudo
Source: Survey Team

The following is a summary of the findings from the interviews on the two organizations' intentions
for cooperation and their past efforts in ICT industrial exchange and international cooperation that can
be applied to the future promotion of the ICT industry in Uganda.

Table 4-3 Intentions for industrial exchange and international cooperation in the ICT
industry
International  The ideal of our education is for international students to become close to
University Japanese companies through our university and grow up to be business partners
of Japan of Japanese companies. Therefore, in the future, we would like to train
international students in the practical aspect as well.
 We are interested in participating in the framework for supporting Africa in Japan.
Matsue  A Memorandum of Understanding was signed with the State of Kerala, India, for
Industrial the purpose of economic exchange, which led to the acceptance of local ICT
Support personnel. In the future, when the same or similar efforts are made for other
Center countries, a memorandum of understanding for economic exchange agreement is
necessary.
Source: Survey Team

Table 4-4 Past efforts in ICT industry exchange and international cooperation, and
knowledge gained from these efforts
International  It has accepted the largest number of students in Japan through the ABE Initiative,
University and has accepted 8 students from Uganda (a total of 391 students).
of Japan  Since there are few Japanese companies/institutions/organizations that focus on
Uganda to develop their business, when considering the framework of support, it
is better to expand the scope to East Africa and all of Africa, including Rwanda,
which is already focusing on ICT.
 It is important to develop human resources with IT skills, but it is also good to
consider the exit to what fields they will be deployed.

99
 (e.g.) Securing a way to use human resources with IT skills in an ongoing JICA
agricultural development project.
 Uganda has a large number of Japan Overseas cooperation Volunteers (village
development and education). In Uganda, there are many Japan Overseas
cooperation Volunteers (village development and education), so it is possible to
use the cooperative members as intermediaries for IT technology (human
resources with IT technology).
Matsue  Since 2008, as part of the exchange program, we have been accepting working
Industrial people and students as interns at ICT companies within the sphere in Kerala,
Support India.
Center  We accepted 11 interns in 2008, 14 in 2009, and 14 in 2008.
 14 students were scheduled to participate in the program in 2019 and
2020, but due to travel restrictions, only Japanese language education was
provided.
 So far, five students have been employed by three companies in the
prefecture.
 Based on the experience of the India project, it is possible that the availability
of language support measures will be an issue when considering collaboration.
 In cooperation with Shimane University, we offer Japanese
language classes for about 7 months before interns coming to
Japan.
 Although there are foreign interns who wish to work in Japan,
We have the impression that many companies on the Japanese
side are hesitant to make job offers because they feel that the
interns' Japanese language skills are an issue.
 The local government has partnered with Shimane University to
provide Japanese language education to the interns, but it is
difficult for them to reach the Japanese level required by Japanese
companies, so in some cases, companies are providing their own
Japanese language education after hiring.
Source: Survey Team

100
 Implementation of Uganda ICT Offshore Pilot Project

<Challenges faced by the ordering side>

In Rwanda, E-gates is engaging in off-shore operations such as digital image processing for
companies in Japan and other countries, and faced challenges shown in the table below when launching
its business before getting it going. Challenges faced by outsourced software development companies
and those of offshore business companies may be slightly different from those in the table below due to
differences of their works, but it is expected that similar challenges will arise.

Table 5-1 Examples of Challenges about Offshore Business in Rwanda E-gates Faced
Difficulty in (1) Clients are cautious about placing orders with Rwandan companies.
finding (2) The companies are not well known.
suppliers in
Japan
(1) Engineers do not master the necessary skills/ have little experience.
(2) The finishing process takes a long time because the engineers do not follow
Engineer’s
through on the work.
low technology
(3) There are differences in the quality level of engineers.
level
(4) Engineers often forget about past mistakes and corrections which were
already pointed out.
(1) Too many communications from request to delivery make project duration
High
longer.
communication
(2) Communication is not "visualized".
costs
(3) Trained employees leave the company.
Inapplicability (1) There are discrepancies in recognition of compliance rules such as
of business information handling.
rules (2) Delivery and handover methods are tangled therefore the technology related
to the requests are kept in black box.
Source: Compiled by the research team

Referring to the challenges that E-gates faced in its Rwandan offshore project shown in the table
above, interviews with a total of nine software development IT companies41 in Japan were conducted.
Specifically, the contents of the interviews were their interests in offshore development in Uganda and
the challenges they expect when conducting offshore development in Uganda (Africa).

41 Companies that are engaged in software development, have experiences in the African continent, or have experiences in
offshore development were selected.

101
 Table 5-2 Interviewed Companies
Name of company Route Date of
interview
Froide Co., Ltd Via research team 2021/2/16
Rexvirt Communications Inc. Via research team 2021/2/20
Company A Inquired through their 2021/3/11
website
Company B Via research team 2021/3/11
Company C Inquired through their 2021/3/16
website
Company D Via research team 2021/3/17
Fellow System Co.,Ltd. Inquired through their 2021/3/26
website
Company E Via research team 2021/03/24
Company F Inquired through their 2021/3/31
website
Company G Via research team 2021/5/24
eftax Co., Ltd. Inquired through their 2021/5/27
website
Source: Compiled by the research team

As a result, the interviews revealed several issues related to human resources, development
environment, and deliverables in implementing offshore projects in Uganda.

Table 5-3 Potential Challenges in Offshore Development

Human ・ The presence of bridge SEs is important in offshore projects. It is necessary to
resource secure bridge SEs who are fluent in both English and Japanese. The bridge SEs
need not only to be able to interpret between Japanese and English, but also to
understand the technology.
・ The cultural differences between Japanese and Ugandan and the lack of work
ethic among Ugandan human resources are some of the challenges that need to be
addressed. They may not understand the concept of business and services in
Japan.
・ One of the concerns is whether it is possible to secure enough appropriate human
resources for offshore development in Uganda. For example, from the offshore

102
 development experience of the interviewee company in the Republic of Malawi,
it was revealed that even the top local human resources have the following issues.
・ Slow response to instructions, which affects delivery time.
・ Not working as directed.
・ The quality of the deliverables is not good.
Development ・ As remote work is becoming more popular, the development environment
environment becomes more important. Therefore, one of the challenges is to be able to set up
the appropriate development environment for offshore projects. In particular,
works and deadlines will be affected where it is subject to frequent power outages.
・ The time difference between Uganda and Japan can be taken as an advantage as
it allows companies to have a 24-hour response system by having employees work
overseas when it is not working hour in Japan. However, it is a disadvantage when
the offshore company needs hands-on guidance.
・ Since the former sovereign state of Uganda is the United Kingdom, there are few
advantages for offshore companies to actively learn Japanese language and
culture in the environment where few Japanese companies are operating.
Deliverables ・ Offshore development is limited to projects with enough period for delivery
deadlines.
・ The quality of deliverables is also a challenge. Since the perception of quality and
the concept of testing varies greatly from country to country, it is necessary to
consider setting professional quality control teams or audits by a third party.
Others ・ Uganda would not be an interesting offshore destination unless the company is
promoting business in Africa on its ow. The challenge is that it is difficult for
ordinary Japanese companies to give reasons why they should choose Uganda as
an offshore destination.
・ For typical Japanese companies that are considering offshore projects, there are
many candidate neighboring countries in the Asian region that have lower income
levels than in Japan and moderate educational levels. Therefore, there is little need
to select Uganda among the African countries as an offshore destination.
Source: Compiled by the research team

(1) Selection process and criteria for the business communication and quality control project
subcontractors
In order to implement the business communication and quality control project, we first selected

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domestic subcontractors.
First, we confirmed the willingness to participate in this project with the eleven companies that we
interviewed as shown in Table 5-2. Next, we issued proposals and requests for quotations to three of the
nine companies that had expressed interest in the business communication and quality control project:
eftax Co., Ltd., Rexvirt Communications Inc., and Company D. As a result of QCBS (comprehensive
evaluation of technical proposals and estimated cost) selection process, we selected two companies,
eftax Co., Ltd. and Rexvirt Communications Inc., as the subcontractors.

○Subcontractor scope of work

Subcontractor conducted a mock project in which accepted Ugandan ICT engineers who are capable
of performing bridge system engineering and project management, or who are capable of performing
the same level of work, into Japanese companies, and utilized them while providing them with technical
and management guidance. In particular, subcontractor analyzed the problems that arise in conducting
software development projects using Ugandan ICT human resources from the perspectives of
understanding business processes, quality control, meeting deadlines, communication, etc., and compile
a report with solutions to the problems.

○Outline of the project to be implemented by eftax Co., Ltd.

The project is to create an application that analyzes the research content of researchers at universities
and other institutions using AI (natural language processing) and displays a network diagram among
researchers in a way that brings researchers with similar research content closer together.
To implement this project, eftax Co., Ltd. conducted a document screening and remote interview, and
accepted two engineers (one front-end engineer and one back-end engineer).

○Outline of the project to be implemented by Rexvirt Communications Inc.

This project involves the development of a web application for an online forms creation system that
can be accessed with a browser. The web application has an account creation function, and after creating
an account and logging in, the user can manage forms (invoices) and the recipients of the forms.
In order to implement this project, Rexvirt Communications Inc. conducted a document screening
and remote interview, and accepted one engineer.

(2) Selection process and criteria for the business matching verification research project
subcontractors
In order to implement the business matching verification research project, we first selected domestic
subcontractors. It was decided that the same nine companies as in the business communication and
quality control project would be the candidates for the domestic subcontractors. The eleven companies
were then asked to confirm their willingness to participate in the project.

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 Then, we issued proposals and requests for quotations to three of the eleven companies that had
expressed interest in the business matching demonstration project: Feude Gizmo Co., Ltd. (Affiliates of
Froide Co., Ltd.), Fellow System Co.,Ltd., and Company E. As a result of the QCBS (comprehensive
evaluation of technical proposals and quotations) selection process, we selected Feude Gizmo Co., Ltd.
and Fellow System Co.,Ltd. as the subcontractors.

○Subcontractor scope of work

Subcontractor conducted a pilot (mock) offshore software development project with a Ugandan ICT
company, analyzed the problems of the project, and compiled a report with solutions to the problems.

○Outline of the project to be implemented by Fellow System Co.,Ltd.

The project will develop a system to manage the membership information of the management
association, to identify and manage the departments and positions of the members, and to disseminate
and manage the attendance of events. In order to implement this project, interviews were held with two
Ugandan companies, which led to the collaboration with Service Cops.

○Outline of the project to be implemented by Feude Gizmo Co., Ltd.

The project will develop an application that when a restaurant owner enters information about the
area, etc., a request for a lump-sum quote will be sent to vendors who operate disinfection businesses in
the area based on that information. Feude Gizmo Co., Ltd. used to have an MOU with Innovation Village,
so they chose to collaborate with Kanzu Code, which has connections with Innovation Village, to
implement this project.

(1) Promotion of the business communication and quality control project

Two companies, eftax Co., Ltd. and Rexvirt Communications Inc., which were selected as
subcontractors, carried out business communication and quality control project. eftax Co., Ltd. accepted
two engineers (Engineer F and Engineer G) from September 1, 2021 to November 30, 2021, and Rexvirt
Communications Inc. accepted one engineer (Engineer D) from September 1, 2021 to December 15,
2021 and carried out the work described in Chapter 6-6-2.

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 Table 5-4 Profile of elected engineers
Engineer F • After graduating from university, engineer A started engineer A’s
own business after working as a freelance engineer.
• Engineer A had two and a half years of experience in contract
development from an overseas SaaS company, and seemed to be
accustomed to contract development.
Engineer G • Engineer B has been an engineer for four years and has been
involved in five projects in the past. Engineer B learned the
technology as an engineer mainly on YouTube and Udemy.
• Engineer B has experience with ReactJS, NodeJS, and REST API
architectural styles.
Engineer D • After graduating from Makerere University in 2011, worked as a
freelance engineer for 6 years while working as an IT supporter
at Makerere University. Engineer C has been in his current
position since 2016. Engineer C is a senior engineer at a
consulting firm.
• Utilize Javascript / PHP as a front engineer.

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(2) Promotion of the business matching verification research project
Fellow System Co., Ltd. and Freude Gizmo Co., Ltd., which were selected as subcontractors,
conducted a business matching verification research project. Fellow System Co., Ltd. worked with one
Uganda company (Company A) from September 10, 2021 to December 9, 2021, and Freude Gizmo Co.,
Ltd. worked with one Uganda company (Company B) from September 7, 2021 to December 6, 2021.
During the period, the business contents described in Chapter 6 6-2 were carried out.

Table 5-5 Profile of elected Ugandan companies

Company A • •Company A have abundant experience in product development that
meets the needs of Uganda, such as the development of in-house
developed financial platforms and the development of fintech
solutions in collaboration with financial institutions.
• The ratio of outsourced development and in-house services is about
the same, and Company A also work as a solution provider for
business process outsourcing.
• There are also offices in Zambia and Rwanda.
Company B • Company B is engaged in both in-house development and contract
development. The main customer of contract development is the
United States, and we also have offices in the United States.
Companies in Uganda, Rwanda and Kenya are also customers.
• Its flagship product is a core banking platform that simplifies the
financial portfolio management process of Savings Credit
Cooperatives (SACCO), Village Lending Savings Associations (VSLA)
and Microfinance Institutions (MFI).
• Runs the Foundation and provides programs for young African
students to acquire practical skills, primarily in the field of software
engineering.
Source: Survey Team

(1) Implementation status of each pilot project

The outline of the project is as described above. After the completion of the pilot project, we received
reports from Japanese companies, Ugandan engineers, and Ugandan ICT companies, and a summary of
the contents of the reports is described in the following pages.
According to the reports of the companies on the Japanese side, there were few mentions of issues
related to the initially expected skill sets, but there were mentions of specification language (not

107
programming limits, but Japanese and English) and communication, including how to proceed with the
project. Some companies also mentioned issues related to doing business with overseas companies, such
as dealing with contracts and overseas remittance practices.
In the reports of the Ugandan engineers and ICT companies, there was little mention of skill set issues
as in the case of the Japanese side mentioned above. In addition, each company left positive comments
about such offshore projects in the future.

Table 5-6 Summary of Japanese companies' reports on business communication and

quality control projects
eftax Co., Ltd. Rexvirt Communications Inc.,
① Evaluation of a Ugandan Engineer
As for the technical level, coding skills were We prepared a document explaining the
high and standard skills were provided. purpose of the software to be developed and
In terms of communication skills, while explained it to the client, which was
some engineers were quick to ask questions understood without any problems, and we were
and report any problems, others were not able able to smoothly move to the implementation
to report and discuss. phase without any misunderstandings in the
question and answer session.
② Issues that arose during the execution of the pilot project
There were times when the front-end work We have been using Rakuten Bank's
was hampered by the delayed progress of the international money transfer service to send
back-end, and it was difficult to coordinate the money online, but for this payment, the bank
work. refused to send the money, so we were finally
There were times when engineers were able to use PAYFOREX to send the money. The
confused due to differences in the problem- reason for this is unclear, but we believe it may
solving methods assumed by project managers. be due to the fact that Uganda is on the
Both parties were able to conclude the enhanced surveillance list. It seems that we
contract without delay using the form need to be careful when sending money.
prescribed by our company.
③ Solutions to issues that arose during the execution of the above pilot project
Regular meetings for the development team See above.
were set up separately from the general
meetings to make it easier to resolve questions.
We have supplemented our engineers to
follow up on the delay in progress.
④ Advice for the growth of Ugandan ICT engineers
He has the necessary skills and his work Although most of the work in this project

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 eftax Co., Ltd. Rexvirt Communications Inc.,
attitude is perfect. I believe that he will be able was done in the form of instructions from the
to compensate for his weakness of lack of Japanese side regarding specific specifications,
experience by participating in various projects a task was set to determine how to design the
in the future. parts that required slightly more complex
detailed design. Although we did not reach the
stage of obtaining the expected results within
the implementation period of this pilot project,
we were able to obtain the output itself, and it
is expected that by sharing examples and ideas
in the future, we will be able to appropriately
design and implement such requirements that
are one level higher.
⑤ Opinions on the future of Ugandan business
Through this project, we were able to learn This project has been a great stepping stone
about the skill level of Ugandan ICT engineers, for us as we aim to expand our business not
and we were able to confirm that they are not only in Rwanda but also in other countries.
inferior to engineers from other countries. The It is currently unclear how many other
selection of an offshore outsourcing partner engineers exist who have the same skills and
depends on the humanity, communication attitude toward work as the engineers who
skills, and technical level of the individual worked on this project, but it has already been
personnel rather than nationality, and I did not proven in Rwanda that even with a small
feel that there were any particular merits or number of people, the scale of acceptance can
demerits of being in Uganda. In the ICT field, be expanded by building a team under the
the resources for learning technology are in direction of engineers who were once able to
English and are common throughout the world, work smoothly with the Japanese side.
so the difference in the nationalities of the
human resources is shrinking, and I feel that
the difference in the quality of human
resources depends on the learning ability of the
individual. Therefore, it is our understanding
that the deciding factor for considering
outsourcing to Uganda is a flat evaluation
based on the individual's humanity, work
quality, and wage level, and that nationality is
not a deciding factor.
⑥ Contribution to the ICT industry in Uganda through this pilot project

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 eftax Co., Ltd. Rexvirt Communications Inc.,
This project will contribute to the Ugandan Although we only worked with one person
ICT industry in that it will allow engineers with this time, we believe that it is possible to set up
insufficient experience to gain experience. It is and operate an offshore development company
also very meaningful because by reviewing the in the same way we did in Rwanda. Therefore,
human resources appropriately and assessing we believe that there is enough potential for
their technical level, we can evaluate possible other companies to establish their own offshore
barriers to the future outsourcing of development bases and then use them as bases
development to Ugandan ICT personnel from for system development for the local market by
Japan and learn about the future potential of taking the appropriate approach.
Uganda as an offshore development base. I also When we move forward, we will focus on
heard from the participants that there are a lot offshore projects, and when the scale of our
of outsourced projects from Europe in Uganda, business reaches a certain level, we will
and I was able to get indirect information from naturally aim to take on projects in Japan and
them about the differences in the project other countries as well. In this case, Uganda's
management system between the European economy is larger than Rwanda's, so there is a
side and the Japanese side, which gave me an good chance that we can use our offshore
opportunity to review my company's experience to expand into a larger organization
development system from an international at an early stage, even if it is mainly for
perspective. I felt that this was a good software development.
opportunity to improve quality in the future. If
we can increase the network between Ugandan
human resources and Japan through this
project in the future, we will have more
opportunities to outsource development from
Japan to Uganda in the future, which will
contribute to the development of the Ugandan
ICT industry.
⑦ General impressions of participating in this pilot project, and other requests and
opinions
The management skills of our engineers See above.
were improved through this project. In
particular, we learned a lot about the
limitations of chat-based communication in a
completely remote team. This was the first time
for us to outsource offshore to African
personnel, and it was a very good experience

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 eftax Co., Ltd. Rexvirt Communications Inc.,
for us to experience firsthand the differences in
national character and English intonation. If
JICA implements similar demonstration
projects in other countries in the future, I would
like to be a part of it.
Source: Compiled by the research team

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 Table 5-7 Summary of Engineer's Report on Business Communication and Quality
Control Projects
Engineer F/G Engineer D
(Conducted with eftax Inc.) *The letters at (Conducted with Rexburt Communications
the end of the sentence refer to each engineer. Corporation)
① Overall impressions of the project
I was able to learn what it is like to work Since I had a background in several of the
with Japanese companies. [F/G] technologies required for this project, it was a
Communication was fairly good, and a perfect fit.
series of knowledge exchanges took place During the project, I was also exposed to
throughout the entire process. [F] other new technologies (Tailwind CSS,
The staff of the Japanese company was very Laravel Livewire, Development Mail servers,
welcoming and very cooperative in all phases etc.) on a professional level, and I believe that
of the pilot project. [F] my experience with these technologies will be
This project helped me to learn new skills useful in other projects.
and gave me the opportunity to design I was also exposed to a new project
solutions from a front-end perspective. It also management tool (ClickUp) that helped me
gave me the opportunity to choose which keep track of my project tasks and schedule.
technologies to work with and how to work It was a meaningful experience to be able to
with them, which definitely improved my interact with engineers from very different
engineering skills a lot. [G]. backgrounds from my own. This kind of
international collaboration is especially needed
in this 21century of sharing ideas and
innovations.
② Contribution of this project to the skill development of Ugandan and African ICT
engineers
This kind of project will greatly contribute Participating in such a project is of great
to the skill development of Ugandan ICT value to ICT engineers in Uganda and Africa.
engineers, as it outlines the timeline and The complexity of the project is also a
deliverables and requires flexibility due to the valuable experience for African engineers, as
time difference. [F] they can learn new tools and techniques that
I strongly believe that such a project will they cannot learn in local projects.
help to improve the technical skills of Ugandan
engineers. [G]
③ Contribution of this project to the ICT industry in Uganda
Since the culture in Uganda is still centered If there are more projects like this, I think the
on physical office workspaces, I believe that ICT industry in Uganda will grow and become

112
 Engineer F/G Engineer D
(Conducted with eftax Inc.) *The letters at (Conducted with Rexburt Communications
the end of the sentence refer to each engineer. Corporation)
projects like this that allow people to very vibrant.
experience remote work firsthand will By having more engineers participate in
contribute greatly to the development of the various projects, the experience of engineers
Ugandan ICT industry. [F] can be improved.
As we gain more experience, we will have
the right skills and be able to build better
technology solutions for Uganda. [G]
④ Issues that arose during the implementation of this project
Communication with Japanese companies, Communication was incomplete, and for
communication within the company, quality some tasks, instructions were not detailed
control, documentation, submission of enough. I had to go back and forth with the
deliverables, time management, etc. [F/G] project manager to understand it.
In the beginning of the project, there was The document was not very detailed, and I
little documentation or the documentation was was expecting a more standardized
not clear. [F/G] requirements document.
There were several times when the code was Since I was working mainly by myself, I did
not reviewed in a timely manner. [F] not have many opportunities to collaborate
with other developers.
⑤ How to resolve the issues that arose above
As for the problem of lack of When the information was incomplete, I
documentation, a lot of information was asked questions to clear up my doubts, and the
provided during the project implementation, PM answered them well.
and we were able to fill in the missing parts.
[F]
The timing of the code review was resolved
by having each reviewer look at the code from
time to time through Slack and other
communication activities. [F/G]
Since our accents were different, I asked a
lot of questions to make sure we both
understood each other. [G]
⑥ Receiving orders for offshore projects from Japanese companies
We would like to receive offshore orders I would like to receive more orders for this
from Japanese companies. [F/G] kind of project.

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 Engineer F/G Engineer D
(Conducted with eftax Inc.) *The letters at (Conducted with Rexburt Communications
the end of the sentence refer to each engineer. Corporation)
I want to participate in a project that uses
relatively new technologies such as Python,
Java, and Kubernetes.
I want to be involved in the entire lifecycle
of a project, from start-up to design,
deployment, and testing.
⑦ Support that Ugandan ICT companies need from donor agencies to grow
Partnering with a local software hub to I feel that donor agencies could invest more
empower Ugandan ICT companies. [F] in connecting Ugandans with offshore
Conduct occasional training on the latest companies as well as with developers.
trends in the ICT sector. [F] Donor organizations should invest more in
Partner with a local company to implement retraining Ugandan engineers, as many of them
a pilot project for Ugandan engineers to learn are not yet ready to work professionally.
the technology. [F] While some Ugandan ICT companies are
I think the best way to help is to train working hard to develop the industry, I don't
engineers. [G]. think the country has fully embraced ICT as the
next industrial revolution yet. This means that
companies do not see any real value in the
services they provide, and it will take some
time before ICT becomes a fully accepted part
of every organization's operations.
Therefore, until then, financial support
(guarantees, subsidies, etc.) is necessary to
enable ICT companies to realize their full
potential.
⑧ Other
I would like to thank JICA for giving me the Another idea is to have experienced
opportunity to participate in this pilot project, Ugandan engineers mentor young developers,
and I hope to see more collaborations like this recent graduates and university students. This
in the future. [F] should help young developers acquire the skills
It is desirable to have an environment where they need to be successful in the industry.
Japanese companies can easily find Ugandan Such an initiative could be spearheaded and
engineers and Ugandan engineers can work publicized by JICA.
with Japanese companies. [G] The idea is similar to Google's developer

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 Engineer F/G Engineer D
(Conducted with eftax Inc.) *The letters at (Conducted with Rexburt Communications
the end of the sentence refer to each engineer. Corporation)
groups, which can be localized to different
regions of the country. Most of the existing
initiatives are centrally focused, leaving out
potentially talented developers from other
regions.
Source: Compiled by the research team

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 Table 5-8 Summary of Japanese companies' reports on the Business Matching
Demonstration Project
Fellow System Co., Ltd. Freude Gizmo Co., Ltd.
① Evaluation of a Ugandan ICT Engineer
As for the technical aspects, we were not I felt the high level of coding skills
able to judge whether the deliverables as a (development of web services on WordPress
whole could be released. We were not able to and high level of basic skills).
determine how it would turn out in a project The deliverables were in line with the
that could take a long time. request, the speed of implementation was fast,
In terms of project management, I felt that and the goal setting was accurate.
there were issues in managing completed and
uncompleted (test items) for delivery.
② Issues that arose during the execution
of the pilot project
Communication: I felt that there are many In addition to the implementation part
things that cannot be conveyed as long as (specification and contractual aspects), we did
language is converted. not have any knowledge of overseas
The infrastructure was stable, but we need to offshoring, so we had to spend a lot of effort on
devise a way to have ZOOM meetings with the following points in particular.
video off.  Quasi-delegated contract for agile
Time: Due to the time difference, the time development
available for sharing was greatly limited,  UI sharing
which affected the setting of meeting times and  Conclusion of contract
real-time confirmation and response.  Overseas remittance
 deposit
③ Solutions to issues that arose during the execution of the above pilot project
Since we realized this at the end of the A quasi-delegate contract based on agile
project, we were not able to solve the problem. development: We proceeded in an agile
In terms of time, it is important to adjust the manner, but the contract was made as a
schedule as soon as possible and to secure a contract.
large adjustment buffer for the deadline. UI sharing: We created and presented the UI.
Conclusion of contract: We received support
from knowledgeable lawyers and AAIC.
Overseas remittance: We received support
from tax accountants and others with expertise
in this area.
Deposit: Handled due to small amount.

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 Fellow System Co., Ltd. Freude Gizmo Co., Ltd.
④ Advice for the growth of Ugandan ICT engineers
In the future, proactively resolving issues There was an overall passive attitude.
that may arise in doing business with other There were a lot of inadequacies on our side,
countries will help expand business but I would have liked to see more suggestions,
possibilities and gain the trust of the other as it was inferred that they had the ability to
party. make more proactive suggestions.
As for the discrepancy in information caused
by the language barrier, there is an opportunity
by providing deliverables that exceed the
specifications.
For management skills, organizing test
items, simplifying notations, and sharing test
items are essential skills for contract work.
In addition, I feel that by improving my
design and management skills, I will be able to
understand the characteristics of the orders I
am good at.
⑤ Opinions on the future of Ugandan business
The front-end implementation is expected to In anticipation of future projects, I would
require a lot of rework in terms of Japanese have liked to see more publicity about what we
localization and design implementation. can do.
It is necessary to specialize in API
implementation and use it.
⑥ Contribution to the ICT industry in Uganda through this pilot project
We believe that mock projects such as this A "mock project to match Japanese SMEs
pilot project can contribute to the Ugandan ICT with Ugandan start-ups" such as this pilot
industry in terms of "standardization" and project will contribute to the Ugandan ICT
"being involved in a system that is different industry in the following ways.
from the work that is usually ordered".  Business collaboration between a
Ugandan ICT company with a small
number of engineers and a Japanese
abstract company with a small but
constant number of development
projects.
In addition, in order to grow the ICT
industry in Uganda in the future, the following

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 Fellow System Co., Ltd. Freude Gizmo Co., Ltd.
support is needed from JICA and other
supporting organizations in Japan.
 Support for engineer development
based on on-the-job training between
engineers who are familiar with Japanese
ICT business practices and Ugandan IT
inexperienced people
 Matchmaking between Japanese
companies and Ugandan ICT companies
(on-site inspection assistance, etc.)
 Interpretation and other ancillary
support up to the signing of the contract
 Establishment of a support desk in
case of trouble
 Support and assistance with different
business practices such as deposits
 PR and promotion of best practices
⑦ General impressions of participating in this pilot project, and other requests and
opinions
It was a project that relied heavily on The engineers involved in this project were
cooperating companies and collaborators. excellent, and we were able to learn a lot from
There was no guarantee that the interpreter them.
would be able to respond in real time, and I felt Although there were some problems in
that the time constraints on communication concluding the contract in communication, I
were significant. feel that the actual work proceeded relatively
smoothly.
I think one of the main reasons why this
project went smoothly was that the Ugandan
ICT company we were partnering with had the
same vision of training people with no
experience. I hope we can have another
opportunity to collaborate on training
engineers through work in the future.
Source: Compiled by the research team

118
 Table 5-9 Summary of the report by Ugandan ICT companies on the Business
Matching Implementation Study Project
Service Cops Kanzu Code
(Implemented with Fellow System, Inc.) (Conducted with Freude Gizmo, Inc.)
① Overall impressions of the project
We were able to improve the skills of our From the initial selection of the company to
engineers. the start of the project, the entire process was
I like working in a multicultural well coordinated.
environment and interacting with my team. I was very satisfied with the way they
handled language differences.
The contracting process with Japanese
companies takes a long time, and I hope this
will be improved in the future.
② Contribution of this project to the skill development of Ugandan and African ICT
engineers
I believe that this project will contribute to This project can improve the ICT skills of
improving the skills of ICT engineers in Ugandan engineers and Africa as a whole, and
Uganda and Africa. acquire many skills such as
 Improve coding skills
 Effective Communication
 Improve collaboration
(e.g., use of version control).
 Improved project
management
 Understanding of software
development methodologies
③ Contribution of this project to the ICT industry in Uganda
I believe that this project will contribute to This project has been useful in the following
the development of ICT industry in Uganda. ways.
 Hire more engineers and
grow your internal team.
 More engineers can be
hired.
 Investment in engineering
process improvements (e.g.,
purchase of tools to increase
efficiency)

119
 Service Cops Kanzu Code
(Implemented with Fellow System, Inc.) (Conducted with Freude Gizmo, Inc.)
④ Issues that arose during the implementation of this project
There was a small problem with the In the beginning, there were many
language barrier, but it was easily solved. miscommunications and misunderstandings.
There were few documents and the project
requirements were not clear.
The work was delayed due to unexpected
technical problems such as IP restrictions and
server shutdowns.
After the task was completed, it took a long
time for the Japanese company to review the
code.
It took a long time to finish the project
(sprint review) meeting.
⑤ How to resolve the issues that arose above
The translator in charge helped me a lot. The Japanese side used a translation
application to share document information.
A Slack channel was created to support rapid
communication about project tasks and
deliverables.
We created a Trello board for effective
project management so that the Japanese side
could follow up on the project.
⑥ Receiving orders for offshore projects from Japanese companies
We are interested in receiving offshore We would like to increase the number of
projects from Japan, for example, in the orders we receive from Japanese companies
following areas and would like to work on projects that match
 Enterprise technology platform: ERP, our expertise (website design and
channel management, enterprise service development, e-commerce development,
bus, middleware solutions mobile app design and development, etc.)
 Payment Solutions
 Management Information System
 Technologies for the Financial Services
Ecosystem
 Insurance Platform
 Workflow Digitization

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 Service Cops Kanzu Code
(Implemented with Fellow System, Inc.) (Conducted with Freude Gizmo, Inc.)
⑦ Support that Ugandan ICT companies need from donor agencies to grow
Offshoring business opportunities that allow Talk to more Japanese companies to get
for skill exchange and revenue generation. more projects and job opportunities.
Certification training for engineers, IT Engage government agencies to promote
project managers and analysts. policies that subsidize ICT enablers.
Cultural exchange between the Ugandan IT (e.g., cheaper internet, cheaper laptops)
team and the Japanese IT team.
Organize a joint IT clinic/hackathon
between Ugandan and Japanese IT companies.
⑧ Other
I would like to see collaboration None in particular.
opportunities between Ugandan IT companies
and selected Japanese companies for
technology exchange and multicultural
understanding (learning Japanese would be an
added value).
I would like JICA to support Ugandan IT
companies to support JICA programs in
various fields, including projects with the
government.
Source: Compiled by the research team

(2) Differences in the way each company conducts ICT offshore pilot projects
In analyzing the issues identified through the pilot projects described in (1) and (2)
above, it is thought that the analysis of the issues can be refined by organizing how the
collaboration with Ugandan engineers or Ugandan ICT companies proceeded and the
frequency of communication and guidance. Therefore, we decided to summarize the
differences in how each company proceeded as follows.

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 Table 5-10 Differences in how companies proceed with pilot projects
Tool (esp. Location of
Business software, Communication frequency development in
etc.) Uganda
eftax Co., Ltd. Slack Every day Front coding
Trello General meetings once or Back-end coding
twice a week
Rexvirt Communications Inc., Click Up Every day Back-end coding
Fellow System Co., Ltd. Slack Once every 1-2 days Front coding
(mediated by a foreign Back-end coding
engineer who also serves as
an interpreter)
Freude Gizmo Co., Ltd., Slack Every day Front coding
Trello General meetings once or Back-end coding
twice a week
Source: Compiled by the research team

As for communication, conversations among engineers occurred almost every day at each company,
indicating the need for micromanagement through close communication. On the contrary, the
engineers commented that they compensated for the discrepancy in perception caused by the lack of
detailed documentation by increasing the frequency of communication. Compared to foreign
companies, Japanese companies tend to have less precise documents, and it is important to balance
activities to reduce communication discrepancies by making documents more precise, and
management and trust building through close communication.
In addition, the entire company had set up a meeting for all engineers once or twice a week. The
Japanese company commented that chat-based communication has its limitations, and the Ugandan
company also commented that having a whole-team conversation about once a week was very helpful
for mutual understanding and team building.
This time, the Japanese engineers were in charge of the parts of the company that required advanced
technology such as the design stage, while the Ugandan engineers and the company were in charge of
part of the development process. As mentioned in the comments from the host company, the Ugandan
engineers were not competent enough to take on the next stage of development, such as the stage that
requires them to read the background of the development and propose the necessary functions. The
Ugandan engineers also commented on their lack of competence due to lack of experience and
knowledge.

122
(3) Challenges for Uganda's ICT Offshore Revealed through Pilot Project Implementation

Table 5-11 Issues Identified by Pilot Projects

Japanese company Ugandan Engineer Ugandan ICT Company
(business, firm)
Talented Training of English- Improve business skills and techniques
person speaking personnel or
recruitment of foreign
engineers
Things None in particular
(Infrastructure) At the time of the interviews, there were occasional difficulties in communicating
using the Zoom camera, and there were concerns about the strength of the
Internet, but no major problems occurred with the Internet used by the Ugandan
engineers and the companies.
In addition, although the OS used did not affect the development environment this
time, it may become a problem in the future when advanced development projects
arise.
Funds There were no issues None in particular
related to funds, but the
problem of limited means
of remittance did occur.
Opportunity There is no particular Lack of means to receive orders other than referrals
motivation to hire Ugandan (*Marketing needs to be strengthened)
engineers compared to
other countries.
Institutions Language and management Strengthen educational Need subsidies and other
and policies training for Japanese content to improve support for the unstable
engineers prior to hiring skills period until the ICT
foreigners business becomes an
industry.
Source: Compiled by the research team

In addition, when the survey team initially conducted a desktop search for Ugandan companies, they
found that Ugandan companies doing contract development did not appear in the search results, and
there was no response when they contacted the companies. In addition, it appears that contract
42
development from overseas is not counted in the export statistics, and the lack of clear statistical
information and indicators that can be used to evaluate support measures is also an issue.

42 https://www.ubos.org/wp-content/uploads/2021/03/Trade-statistics-Bulletin-March-2021.pdf

123
 Relevance and Contribution of Start-ups to the Ugandan
ICT Industry

According to the survey conducted by Global Entrepreneurship Monitor (GEM) in 2015, Uganda has
the highest rate of entrepreneurship among sub-Saharan African countries.
Though Uganda has the highest rate of entrepreneurship, in terms of the number of new companies
registered as formal sector, Uganda is less than half the numbers of Kenya and 1.8 times more of Rwanda
which economy size is one-third of Uganda. It is expected that there may be rooms for improvement in
business and start-up environment in Uganda.

50000
44259
45000

40000 37303

35000

30000

25000
18387 18050 17423 18862
20000 16686 16757
14661 15409
15000
10490 9980 9775 10146 10076 10635
7479 8376 9486 8526 9272
10000 7104 6030
3650
5000
252 311 431 1307
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Uganda Kenya Rwanda

Figure 6-1 Number of Newly Registered Companies as Formal Sector

Source: World Development Indicators

Investment in Africa for start-ups vary across data sources, and Uganda is far behind the big four hubs
of Nigeria, Kenya, Egypt, and South Africa. The following figure shows statista43’s mapping of venture
capital investment in the leading African countries in 2020, and while there is a significant gap between
Uganda and the big four hubs, it is also in the second group of countries for start-up investment.

43 https://www.statista.com/chart/24911/vc-investment-by-country-in-africa/

124
 Figure 6-2 Venture Capital Investment Amount in Representative African Countries

Source: statista

Based on the research team's analysis using Crunchbase data, the following table shows the trend in
the amount and number of investments to start-ups in Uganda. Both the number of investments and the
amount invested to start-ups are growing, but the amount invested per year has remained in the $10
million range except for 2019. Therefore, the base investment amount for start-ups in Uganda can be
said to be in the range of $10 million, as the investment amount for the year is greatly be affected and
fluctuates when even one deal with a large investment amount is entered. According to the breakdown
of the number of investments in start-ups, Grant and Pre-Seed/Seed are the main categories, and
investments in Early (Series A/B) and Growth stage are limited.

125
 Table 6-1 Amount and Number of Investments to Startups in Uganda

(Note: Data which amount of investment is not clear is not included in the number of investments.)

Source: Compiled by the research team based on data from Crunchbase

According to the analysis conducted by survey team based on the above data, out of 178 investments
in ICT-related start-ups, 113 (more than 60%) were for ICT-based start-ups. Of these, Fintech, MedTech
(Health Tech) and Environment Tech / Transport (Mobility) were the top three companies with 32, 29
and 17 investments respectively. In terms of the amount of investment, Transport (Mobility) accounted
for 43%, Environment Tech 36%, and Fintech 13%, while MedTech, despite its large number, tends to
have a strong impact component and a large Grant for commercialization.

126
 Table 6-2 Number of ICT-related Startup Investments and Investment Amount by
Sector

Source: Compiled by the research team based on data from Crunchbase

127
 The following is a list of the top funded start-ups based on Crunchbase data. The overview of ICT-
related start-ups are provided in the Appendix.
 Tugende
 Asaak
 Safeboda
 AIrQo
 Enisibuuko
 The Medical Concierge Group
 Easy Matatu

In addition, the following start-ups are also getting attention as ICT-based start-ups, based on on-site
interviews and article reviews on the Internet. The outline of these start-ups is added in the Appendix.
 Fintech: Eversend, Xente, Numida, Xeno, patesente
 Environment/Renewable Energy: gnuGrid, Innovex
 Agriculture: Famunera

Table 6-3 Amount of Funds Raised by Representative Startups

Source: Compiled by the research team based on data from CrunchBase

128
(1) Government Action on Startup Ecosystems
In order to strengthen the start-up ecosystems, the Government of Uganda has been developing the
ICT industry and actively supporting innovative start-ups in recent years.

Figure 6-3 ICT Policies Based on National Development Plan in Uganda

Source: Uganda Vision 2040, NDPI, NDPII, NDPIII

129
 Figure 6-4 Digital Transformation in NDPIII

Source: NDPIII

In 2015, the Uganda Investment Authority (the investment promotion agency in Government of
Uganda established in 1991) organized the first Private Equity and Venture Capital (PEVC), which was
held again in 2016 to provide a platform for start-ups and SMEs to raise fund. In 2017, Kampala
Innovation Week was launched as the largest annual event in Uganda to connect start-ups, investors, and
others, which is sponsored by the Ministry of Science, Technology and Innovation (MSTI), Startup
Uganda and UNCDF.

Major start-up initiatives in the Government of Uganda are as follows;

130
 Figure 6-5 Major Initiatives on Startups Led by the Government of Uganda

Source: Compiled by the research team based on the Government of Uganda website

The Ministry of ICT established the National ICT Initiatives Support Program (NIISP) in 2017 to
support Ugandan ICT innovators and start-ups. Supports through fund were conducted to 117 start-ups
for 3 years from 2018 to 2020; 12 start-ups in 2018, 60 start-ups in 2019, and 45 start-ups in 2020.
According to NIISP, of the 12 start-ups supported in 2018, 7 have developed products, and 4 of them
have commercialized their products in the Ugandan market.

131
 Figure 6-6 Overview of NIISP

Source: Compiled by the research team based on NIISP

Figure 6-7 Number of Startups Supported by NIISP

Source: Compiled by the research team based on NIISP

132
 Figure 6-8 Number of Startups Commercialized Through NIISP

Source: Compiled by the research team based on NIISP

In addition, the MSTI was established in 2016 to develop Science, Technology and Innovation (STI).
Along with the implementation of capacity building in STI, feasibility study for establishing Innovation
and Technology Hubs (MIT Hubs) were conducted in 8 municipalities in 2019. MSTI is supporting
Kampala Innovation Week, the largest event for supporting start-ups mentioned above.

There is also an active support through international organizations. On International Youth Day in
August 2020, the President of Uganda announced the establishment of the Youth4Business
Entrepreneurship Facility, a five-year facility with initial capital of $10 million in free funding and $200
million in concessional loans, in collaboration with UNDP and Stanbic Bank Uganda, to support young
entrepreneurs.

(2) Ecosystem Surrounding Startup Companies (Accelerators and Other Support Functions)

133
 Figure 6-9 Mapping of Accelerators and Investors

Source: Compiled by the research team

According to Hi-Innovator, there are more than 30 accelerators and incubators in Uganda as an
ecosystem to support start-ups. Also, according to the GSMA/2019 report, there are 10 Tech Hubs
(618 in Africa as a whole) that focus on supporting ICT-related start-ups. However, compared to the
growth of Tech Hubs in Africa as a whole, the ecosystem supporting ICT startups in Uganda has
remained flat, given that the GSMA survey showed 12 Tech Hubs in 2016 (314 in Africa as a whole)
and 16 in 2018 (442 in Africa as a whole). In addition, according to the recent Startup Blink survey,
Uganda was ranked 81st in 2019, 89th in 2020, and 97th in 2021, and although it is still in the top 100,
it is losing rankings.

134
 Figure 6-10 Distribution of Accelerators, Incubators, and Tech Hubs in Africa (Part 1)
Source: GSMA

135
 Figure 6-11 Distribution of Accelerators, Incubators, and Tech Hubs in Africa (Part 2)
Source: GSMA

136
 Figure 6-12 Distribution of Accelerators, Incubators, and Tech Hubs in Africa (Part 3)
Source: GSMA

137
 On the other hand, Uganda is actively strengthening its ecosystem with the establishment of an
innovation and start-up support association (Startup Uganda) in 2019, supported by the United Nations
Capital Development Fund (UNCDF), which aims to serve as a platform to connect various ecosystem
stakeholders. Innovation Village, Outbox, Hive Colab, etc. have become core members of Startup
Uganda and have started their activities with the aim of having Tech Hub collaborate under Startup
Uganda. Ecosystem players participating in Startup Uganda are as follows: Richard Zulu of Outbox has
become a Chairperson and is working to strengthen the ecosystem.

138
 Figure 6-13 Ecosystem Players Participating in Startup Uganda
Source: Compiled by the research team

139
 However, the start-up ecosystem is still fragmented. According to the founder of Hive Colab (Ms.
Barbara Birungi, a Board Member of Startup Uganda), "The ecosystem is fragmented, and many
accelerators and incubators operate independently without horizontal linkages. As they send messages
that they can do anything by themselves, there is a lack of information on which accelerator program a
start-up should challenge at which stage.”
In addition, several accelerators pointed out that the mindset of Ugandan companies is to stay in "their
own business". As a result, many Ugandan start-ups are always looking for grants, and many pointed
out that one of the challenges for start-ups is to prepared to accept direct financing (equity financing,
etc.) rather than indirect financing such as loans.

The following have emerged as the main challenges faced by tech start-ups.
・ Lack of human resources: There is a lack of human resources for technology and business
management in startups (many accelerators such as Starthub Uganda, Hive Colab, Innovation
Village, and Outbox have pointed out the challenges of human resources).
・ Mono: Although government support exists, there are fewer ecosystem players compared to Kenya
and other countries, such as accelerators. Some startup companies say that the acceleration program
is not a program to support startup issues, and there are issues with the acceleration program as
described in Chapter 5. In addition, there are issues in the business environment to begin with.
・ Access to funds: As mentioned in 4-1, there are many Seed grants, and access to funds in the Early
(Series A/B) and Growth stages is an issue.
・ Community: Starup Uganda and KIW are still in the process of creating funding opportunities, but
according to ecosystem stakeholders, horizontal connections and synergies may still be weak.

Since goods, access to finance, and communities have been mentioned in the previous section, we
will now describe some of the challenges in the business environment. Compared to neighboring
countries such as Rwanda and Kenya, Uganda's business environment is low in the World Bank's Doing
Business rankings.

140
 Figure 6-14 Uganda's Business Environment

Source: The World Bank Doing Business 2020

In terms of the business environment, there are challenges in key areas for ICT-related startups, such
as electricity, cell phone penetration, and Internet costs, as well as challenges in the business start-up
process, so starting a business in the formal sector in Uganda itself may be a hurdle.

Cell phone penetration is low compared to neighboring Kenya and Rwanda, and as mentioned in the
KPI section of NDP III, the price itself is high. The following is a comparison of the cost of smartphones.
Uganda has a higher GNI ratio than Kenya and Tanzania, and the cost of internet is relatively high.

141
 250

200

150

100

50

Copyright © 2021 AAIC All Rights Reserved.

Figure 6-15 Mobile Phone Penetration Rate in Africa and the Middle East (per 100 households)
Source: World Bank

142
 Smartphone Prices / Affordability
300%

$140

250%
$120

$100 200%

$80
150%

$60

100%

$40
73%

50%
$20 39%

$0 0%

Co a u
Na a

rra di
Lib i
a
hA o

e
ia

rk car

Bu r

e
ni ypt
co
s

Ce e d s o
e

da

p
Ug s
sia

ria

e
Ca ania

a R
am a
n

C o n in
M b ia

pe a

Ta ia
M ca

al

ge
h
an

iu

Re
bo

Ca ha n

qu

Af voir
oo

M o, D

on
oz ny
rd
bi

er

Sie run
in

ss
So s ot

or

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oc

ge
fri

ni

an

Bu ga s
rit

G u Eg

Ni
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i

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tsw

M Ke
Gu
Ga

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m

bi
er

m
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nz

an
Tu
or

Al

G
Za

'l
au

Le

ng
a‐
m

in

ric
Bo

ad
ut

t
nt
Price (USD) % of GNI p.c. Global (70 countries) Africa

Source: Alliance for Affordable Internet, "From Luxury to Lifeline – Reducing the cost of mobile devices to reach universal internet access"

21
Copyright © 2021 AAIC All Rights Reserved.

Figure 6-16 Smartphone Prices / Affordability

Source: Alliance for Affordable Internet, “From Luxury to Lifeline – Reducing the cost of mobile devices to reach universal internet access”

143
 Internet Cost Fixed Broadband 5GB

Fixed‐Broadband prices / Affordability

$70 80%

70%
$60

60%
$50

50%
$40
40%
$30
30% 29%

$20
20%

$10 10% 10%

$0 0%

ia

e
Pr i a

er
i
l G e)
bo us

da
am s o
Bo rde

Se e
Gu a

re

Ni a
Na n

l
a

e a nda
Ta on

rk nin
ut ana

M u
M lles

ea

ria

go
Es na
ia

Et ali
Le ca
o

r
d' a

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tin

ca
bo

qu
y

ip
th

a
op
nd mb
go

an
h
ib

M Nig
a
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ala
n
fri

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o

an
a

To
Cô uin

iss
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in

ge
ne
to of t

inc

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as
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he

wa
so

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er

bi
tsw

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hi
An

nz
hA

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‐B
au

e a Za

ag
yc

in

R
.

ad
ep

te
Se

ria

oz

in
So

R
o(
ua

m
ng
Eq

To
Co

o
Sa USD % of GNI p.c. Global Africa

Source: Alliance for Affordable Internet *Uganda uses 2019 data points

22
Copyright © 2021 AAIC All Rights Reserved.

Figure 6-17 Fixed-Broadband Prices / Affordability

Source: Alliance for Affordable Internet

144
 M

0
5
10
15
20
25

au
Bo ritiu
tsw s
a
Ni n a
ge
r
G ia
Se ab o
yc n
he

Source: Alliance for Affordable Internet

lle
So Gh s
ut a n
hA a
fr
Na i ca
m
i
S bia
Ca e ne
bo ga
Ve l

Source: Alliance for Affordable Internet

rd
An e
go
l
Ke a
n
Za ya
Ca mb
m ia
er
oo
Cô B n
te eni
d' n
Ivo
Sa
o ire

USD
To M
m E
e a s w ali
nd a
Pr tini
inc
L e ip e
so
t
Gu ho
i

145
% of GNI p.c.

Ta ne a
nz
an
Co M Rwa ia
o
ng z a nd
o( m a
Re biq
p. ue
Global

of
th
Copyright © 2021 AAIC All Rights Reserved.

Lib e)
e
G a ria
m
b
U g ia
Africa

an
E d
Bu th i a
rk op
in ia
Data Only Mobile‐Broadband Prices / Affordability

aF
Internet Cost Mobile 1.5 GB (Data Only)

a
Bu s o
ru
nd
Ni i
ge
Sie T r
rra ogo
M Le
Figure 6-18 Data Only Mobile Broadband Prices / Affordability

ad on
ag e
as
ca
Ce r
nt Ch
ra
l A M ad
De f al
m G rica aw i
. R ui n
e p e Ren
. o a‐B p.
f t iss
he a
Co u
ng
o
0%
5%
10%
15%
20%
25%
30%
35%

3%
9%

23
 In addition, the business environment for starting a business is complicated and costly.

Start‐up procedures to register a business (number)

18

16

14

12

10

8 8

7
6

Congo, Rep.
Zambi a

Botswana

Somali a
Niger

Malawi
Burkina Faso

Benin

Chad

Guinea‐Bissau

Sudan
Mauritius

Comor os

Seychelles
Cote d'Ivoire

Sierra Leone

Gambia, The

Sao Tome and Principe

Cabo Verde

Zimbabwe

Mozambique
Congo, Dem. Rep.

Kenya
Liberia

Rwanda

Guinea

Nigeria
South Afri ca

Angola

Ghana

Namibia

Er itrea
Uganda
Tanzania

Ethiopia

Equatorial Guinea
Mauritania

Madagascar
Senegal
Burundi

Mali

Eswatini
Central African Republic
Togo

Cameroon

Lesotho

Gabon

South S udan
Start‐up procedures to register a business (number) Global Sub‐Saharan

Source: The World Bank (2019), Doing Business indicators

25
Copyright © 2021 AAIC All Rights Reserved.

Figure 6-19 Startup Procedures to Register a business (Number)

Source: The World Bank Doing Business 2020

146
 0
10
20
30
40
50
60
70
80
90

Togo
Rwanda
Mauritius
Burundi
Cote d'Ivoire
Mauritania
Senegal

Source: The World Bank Doing Business 2020

Congo, Dem. Rep.
Sao Tome and Principe
Nigeria
Gambia, The
Madagascar
Sierra Leone
Benin
Guinea‐Bissau
Zambi a
Cabo Verde

Source: The World Bank (2019), Doing Business indicators

Gabon
Niger
Mali
Burkina Faso
Ghana
South Sudan

147
Cameroon
Time required to start a business (days)

Guinea
Lesotho
Comor os
Mozambique
Global

Liberia
Copyright © 2021 AAIC All Rights Reserved.

Eswatini
Central African Republic
Time required to start a business (days)

Kenya
Uganda
Zimbabwe
Sub‐Saharan

Tanzania
Ethiopia
Figure 6-20 Time Required to Start a Business (Days)

Seychelles
Equatorial Guinea
Sudan
Angola
Malawi
South Afri ca
Botswana
Congo, Rep.
Namibia
Chad
Somali a
Er itrea
19.6
21.5

26
 0
100
150
200
250

50
Rwanda
South Afri ca
Botswana
Mauritius
Cote d'Ivoire

Source: The World Bank Doing Business 2020

Benin
Lesotho
Liberia
Sierra Leone
Niger
Togo
Namibia
Eswatini
Angola
Burundi
Ghana
Sao Tome and Principe

Source: The World Bank (2019), Doing Business indicators

Seychelles
Cabo Verde
Gabon
Mauritania
Congo, Dem. Rep.
Sudan

148
Er itrea
Kenya
Senegal
Cost of business st art‐up procedures (% of GNI per capita)

Cameroon
Nigeria
Copyright © 2021 AAIC All Rights Reserved.

Madagascar
Malawi
Guinea
Global

Zambi a
Uganda
Tanzania
Burkina Faso
Cost of business start‐up procedures (% of GNI per capita)

Ethiopia
Gambia, The
Sub‐Saharan

Comoros
Mali
Equatorial Guinea
Congo, Rep.
Zimbabwe
Figure 6-21 Cost of Business Startup Procedures (% of GNI Per Capita)

South S udan
Guinea‐Bissau
Mozambique
Central African Republic
Chad
Somali a
36.3%

19.8%

27
 In addition, the NDP is also a KPI for online government services, but in the case of registration, there
are many procedures that cannot be handled online compared to Kenya.

Figure 6-22 Comparison of Process to Start a Business

Source: The World Bank Doing Business 2020

On the investment side, there is a suggestion of double taxation if a fund is established in Uganda.
The 30% capital gains tax is also a high barrier to attracting VC/PE investment. In addition to the capital
gains tax, the 1% stamp duty on the transferred share and transaction costs such as due diligence and
legal fees make it very unattractive as an investment. Incidentally, Kenya's capital gains tax is 5% and
Mauritius' is 0%.

Issues such as the organizational structure and management human resources of startups were
identified in each interview in Chapter 5 and will be a key point for the design of future acceleration
programs, but issues also exist in the environment surrounding the startup ecosystem.

149
 Tech start-ups have had a variety of effects. They have had an economic impact in terms of job
creation and income growth by providing funding opportunities to those with limited access to finance.
The following is a representative list of the social impact of start-ups.

150
Figure 6-23 Major Startups and Social Impact (part 1)
Source: Compiled by the research team

151
 Figure 6-24 Major Startups and Social Impact (part 2)
Source: Compiled by the research team

152
 Analysis of Effective Approaches to Acceleration
Programs

(1) Introduction & Summary

Immediately upon the start of the project on February 1st, 2021 we interviewed all the main startup
hubs in Uganda to analyze the challenges of the Ugandan startup ecosystem from their perspective, and
also to begin vetting which hubs would make the best local consultants to lead the JICA accelerator pilot
program.

1. Startup Uganda / UNCDF

2. The Innovation Village
3. Hive Colab
4. Outbox
5. UNDP
6. Growth Africa
7. Starthub Africa
8. SHONA
9. NSSF Hi-Innovator
10. International Trade Center
11. Makerere University Business School, EIIC
12. Tellistic
13. Makerere ICT

Notably, we also discovered that, of these “startup hubs”, some were no longer operational in Uganda
(e.g. International Trade Center, UNDP), were no longer running accelerator programs or had pivoted
to consulting (e.g. SHONA), became aggregators of data or intellectual property of various other startup
hubs (e.g. Startup Uganda / UNCDF, NSSF Hi-Innovator), or were too small or early in their
development to run a sizeable accelerator program (e.g. Tellistic, Makerere University Business School
EIIC)

We also interviewed some startups that were most spoken about in Ugandan’s media and startup
ecosystem, to get their view as well about the main challenges for entrepreneurs in the Ugandan startup
ecosystem, including Safeboda, Xente, Swipe2Pay, Famunera, and Beyonic.

The challenges voiced by the startups and the startup hubs were generally in agreement with each

153
other. In line with the initial plan, we divided the 36 main challenges and 71 sub-challenges we found
into four main categories: 1) Human resources, 2) Technical & Material resources, 3) Financial resources,
and 4) Community or network resources (see figure below):

 11 under Human Resources

 11 under Technical & Material Resources
 10 under financial resources
 under community resources.

154
 Table 7-1 Challenges Map

Source: Compiled by the research team

155
Of these 36 different main challenges, the ones that were cited the most were:
 Tech talent gap: Ugandan developers were not at a global standard, and there are no platforms to
equip them to grow past a certain level. Also, asymmetric information made it difficult for
Ugandan firms to find good Ugandan developers, and vice versa.
 Accelerator fatigue: Startups were getting weary or even cynical about startup hubs and
accelerator programs, saying that they all the same and do not offer training or opportunities
beyond the $20,000-50,000 grant level.
 Unfavorable government policies: The ecosystem said that government policies were unstable
and unpredictable (e.g. internet shutdown during elections, social media tax), with weak rule of
law, and slow processes. They also cited corrupt and uneven playing fields, and the fact that
government ministries were not in sync.
 Fragmented startup ecosystem: Both startups and startup hubs admit that the hubs have not been
cooperating or sharing information well, and that there has been toxic competition among them.
Startups claim that this has made it difficult for them to know which hub is best for their specific
purposes. Startup Uganda was created to tackle this problem, but is still in the nascent stage.

As a research team, we also noted a significant weakness in the Ugandan startup ecosystem,
which is the extremely low number of Series A, Series B, or exits. There have only ever been two
Ugandan startups that have exited.
 Because of the abundance of $20k-50k grants, the ecosystem has developed what is known as
“grant-preneurship”. According to six of the total startup hubs interviewed, the majority of
Ugandan startups rely, not on sales revenue, but on going from one grant to another. According
to our interview with Open Capital Advisors, 80% of Uganda’s startup revenue comes from grant
funding.
 This makes it difficult for them to create a revenue model to scale, develop, and generate enough
sales revenue to become sustainable enough to a level where they can aim for Series A investment
or beyond.
 Because of the small number of startups in this “pre-Series A white space”, there are few mentors
in Uganda who are capable of providing training and programs for pre-Series A level. Those who
coach at this level tend to move abroad (e.g. Growth Africa moving out of Uganda) or are
themselves pre-Series A entrepreneurs (e.g. Ensibuuko coaching for Outbox).
 There has never been a startup hub or accelerator program in Uganda that focused specifically or
professionally on the “pre-Series A white space” because, up till now, there has not been enough
demand in that category.
 Finally, because of the dearth of “pre-Series A” startups and the abundance of grant funding, there
are not enough investors or investor networks in Uganda who invest at the Series A or B level.
(See 5-2 for list of investors and funders we interviewed)

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(1) Objectives of NINJA Uganda pilot accelerator program
We worked with local partners to design the JICA NINJA acceleration pilot program to be Uganda’s
very first accelerator that focuses on the pre-Series A white space, defined as businesses that are in a
growth phase with a revenue model that can raise $0.5-1 million in investment. This is a historic first in
the Ugandan startup ecosystem. We believe it will pave the way for more to follow and that the lessons
we learn from this pilot will be invaluable to the Ugandan startup ecosystem as it prepares to enter a
new stage. We arrived at this decision based upon our findings that there is enough demand in the
ecosystem for pre-Series A acceleration programs.

(2) Research on startups

We broadened our definition of “startup” to mean: 1) businesses entering or in the “growth stage”,
regardless of how long they have been in business, and 2) businesses in the ICT industry or leveraging
ICT to grow their core business. With this new scope in mind for our second round of startup interviews,
we interviewed the following Ugandan startups:

・ UgaBus
・ UniFreight
・ Easy Matatu
・ Hamwe East Africa
・ Ensibuuko
・ Endiro Coffee
・ Jubilee Dental
・ Numida
・ Crypto Savannah
・ Boresha
・ Safari Share
・ Metajua
・ Akello Banker
・ Flip Africa

CONCLUSION: We found that there is a sufficient number of businesses in Uganda at the pre/post-
Series A level, (defined as ready to raise and able to absorb US$500k-1m within the next year) to do a
pilot for an accelerator program that targets this sector. There has been a sudden increase in examples
of Series A, Series B, and exit in the past two years.

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・ Ensibuuko raised $1million from impact investor FCA Investments in April 2021, following
$870,000 in seed funding raised from 5 different sources, most notably GSMA.
・ Numida successfully raised $2.3 million also in April from investors including MFS Africa in
April 2021.
・ Tugende raised $3.6 million Series A funding from Partech Africa, Enza Capital, Verdent Capital,
and others in March 2021. This follows a $6.3 million round in November 2020 led by Toyota’s
Mobility 54.
・ Beyonic exited through an acquisition by MFS Africa in June 2020.

There are also companies that are approaching the pre-Series A stage, which would be this accelerator
program’s main target:
・ Easy Matatu has raised $525,000 from Shell Foundation. The foundation is directly involved with
the startup’s management and will continue to fund it if necessary, but is welcoming outside
investors as well. Easy Matatu later applied and was accepted as one of the five startups to
participate in the NINJA JICA accelerator pilot.
・ UgaBus has raised $100,000 from Bank of Africa, and has an annual revenue of $71,000
・ Safari Share has raised $400,000

There are also established companies that are just beginning to venture into ICT and technology, who
have shown interest in the JICA accelerator pilot program. These businesses have grown through their
proven revenue models, with little or no reliance upon investment or loans.
・ Unifreight (https://unifreightgroup.com/), a logistics company which steadily earns revenue of
$1 million and above (2019, 1.4 million; 2020, 1.1 million; 2021, 1.7 million projected), is
planning to use blockchain to scale and boost efficiency in its supply chain management.
UniFreight later applied for the NINJA JICA accelerator pilot, but was disqualified at the last of
three rounds of assessments.
・ Endiro Coffee (https://www.endirocoffee.com), Uganda’s biggest café chain with branches also
in the US, got to where it is today without a single fundraise, purely on revenue. It is now planning
to start a coffee e-commerce platform that connects coffee farmers around Africa (not only limited
to Uganda) directly with buyers globally. Endiro Coffee later applied and was accepted as one of
the five startups to participate in the NINJA JICA accelerator pilot.
・ Jubilee Dental Clinic (https://jubileedentalclinic.com), one of Uganda’s two premium dental
chains with three high-end practices in and around Kampala, is now investing into several “digital

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 dental services” that allows dental practices to share information, coach young dentists, and also
“3D print” dental implants.

(3) Research on VCs, Angels, and financial institutions

We also interviewed VCs, angels, and financial partners to gauge the possibility for substantial local
investor participation in a $0.5-1million level investment round into local startups that were vetted and
trained by a JICA accelerator pilot program. During the 3 months between February and April, we
interviewed the following potential partners:
・ Hiinga Capital (https://hiinga.org): Started by a Ugandan, Andrew Agaba, who is well
connected with US financiers from Bank of America, Hiinga Capital is ready to invest $5 million
into Ugandan startups within the next 1-2 years. He is eager to be onboard this JICA accelerator
pilot program as an investor.
・ Shell Foundation (https://shellfoundation.org): Shell Foundation is very optimistic about
Uganda’s mobility sector, and has already invested $525,000 into Ugandan startup Easy Matatu,
and is looking to either invest another $1 million or support another investor who is willing to
invest. Natalie Wong, who is the account manager for Easy Matatu, is confident about the startup’s
potential and is proactively approaching the JICA taskforce for partnership to support it.
・ Open Capital Advisors (https://opencapital.com): Although no longer investing into startups,
OCA has 200 investors in its network, including 70 local Ugandan investors, whom OCA is very
happy to introduce to us for the purpose of this JICA accelerator pilot project. OCA has also shown
interest in participating as a due diligence partner.
・ Pearl Capital Partners (https://pearlcapital.net): PCP is focused only on the agricultural
business sector, and invests solely in small to medium enterprises through PE, mezzanine, and
minority stakes. They believe that the Ugandan ICT startup sector is not yet ready for pre-Series A
investment because 1) there is not enough demand for ICT services in Uganda and 2) there is not
enough due diligence capability yet, and 3) the accelerator programs are not ready to train and
prepare startups for pre-Series A investment. PCP believes that what Uganda’s ICT startup
ecosystem needs is BDS training and due diligence provided at the level of KPMG, Deloitte, and
other players in the Big 4.
・ Ortus Partners / 97 Fund / Kampala Angel Investors Network (KAIN): They are all
investment arms of The Innovation Village. Although they only invest up to $10,000 per startup,
they believe that Uganda is ready for bigger investors, and they are happy to introduce such
investors to the JICA accelerator pilot program, as well as invest themselves where possible.

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 CONCLUSION: Although there are some investors (e.g. Pearl Capital Partners) who are still
cautious about whether Uganda’s startups are ready for pre-Series A ($0.5-1 million) investment, most
expressed eagerness to being involved as a support. We believe that an extended presence of JICA
NINJA in Uganda will be able to attract a large enough number of local investors, although 1) it is
doubtful that they would be able to invest substantially 2) there are still have 9 major investors who
operate or have operated before in Uganda whom have not been able to contact:

1. Mango Fund
2. AgDevCo
3. Iungo Capital
4. Acumen
5. Yunus Social Business (YSB)
6. Fanisi Capital
7. Blue Haven
8. EWB Ventures
9. Global Partnerships

(4) Research on Uganda’s startup hubs

Most importantly, we also analyzed the most prominent startup hubs and accelerator programs in
Uganda to see if they have the capability to partner with us at a pre-Series A level.

The JICA NINJA accelerator pilot program is the very first to ever address the pre-Series A range in
Uganda, so there were not many startup hubs who have experience at this level, except Hive Colab (e.g.
Done Deal, Raintree Farms) and Outbox (e.g. Ensibuuko, RubDash).

Our analysis criteria for capability and suitability of startup hubs were as follows:

・ Basics
・ Presence in Uganda
・ Currently in operation
・ Location & facilities
・ Stage of SUs they support
・ Sectors the AP supports

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・ Quality of mentors (list of mentors & background)
・ Programs (content, focus, etc.)
・ Number of SUs supported
・ Notable SUs supported
・ Quality and category of investors who came to pitch events (grant-issuers, VCs, etc.)
・ Number/amount of funding issued (divide into grant, loan, equity
・ Communities in cooperation

CONCLUSION: Hive Colab, Outbox, Innovation Village were chosen as “Tier 1 Hubs”, in other
words hubs with the most likely resources and experience to help mentor startups trying to achieve
fundraising targets of $0.5-1 million.
・ Hive Colab
o The only accelerator that has seen a startup through to exit (Done Deal). It also has supported
the largest number of startups in the “Above $100k”, Series A, and Series B categories.
o Strong ICT focus and mentoring capabilities, hosting JICA’s coding contest, among many
others.
o Very professional and structured accelerator programs and curriculum
o Longest list of qualified, in-house mentors
・ Outbox
o Notably supported Ensibuuko to where it is today at Series A funding level
o Strong ICT mentoring capabilities with Google Startups as its partner
o Very professional and structured accelerator programs and curriculum
・ The Innovation Village
o Has the best facilities (TIV Ntinda & MoTIV)
o Has supported the largest number of startups (140)
o The most well-connected accelerator in Uganda, with strong online, physical, and media
presence both in Kampala and other cities (Gulu, Jinja, etc.), with highly effective PR capability

JICA Taskforce’s approach to discussions with Tier 1 Hubs between the months of May and July of
2021:
・ On May 3rd, we sent our Terms of Reference to all three Tier 1 hubs
・ The complete Terms of References as Attachment 1

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・ On May 4th, we hosted an info session for the management team of all three, and issued them each
with a Request for Proposal.
・ On May 15th, the three hubs counter-proposed together as a group. Their proposal was for Hive
Colab to take the lead as the contracted consultant for this project, while Outbox and Innovation
Village will act as support. Given that an acceleration program designed for pre-Series A level is
something that no Ugandan hub has ever done, we decided that combining the top three hubs was
an appropriate strategy.
・ On May 25th, a proposal was submitted by all three of the hubs

・ On June 3rd, the budget of $169,906 was agreed upon between the SU Hubs and JICa Taskforce

・ On June 10th, the draft contract was submitted to JICA Tokyo.

・ On June 28th, JICA approved the contract after some minor edits.
On July 2nd, the contract was signed between AAIC and Hive Colab
The JICA NINJA Acceleration Project

(1) Contract Signing

The contract was signed on July 2nd, 2021 between Asia Africa Investment and Consulting Pte Ltd.
(representing the JICA Taskforce) and HIVE Colab (as a lead of Joint Venture of Accelerator Hubs). The
contract encompassed the following deliverables from the Startup Hubs, supported by the JICA TF.
1. Promotion leading to Launch Day
2. Launch Day
3. Call for Application through intensive marketing activities
4. Receiving Applications and Evaluations
5. Selected Startup (Five finalists selected)
6. On-site due diligence of the Five finalists
7. Three-month Acceleration Program
8. Proof of Concept Planning, Budget, and Execution by each Selected Startup
9. Continued relationship management with all local potential investors
10. Mock Day
11. Demo Day during the Kampala Innovation Week

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 12. Demo Day for Japanese investors, audiences

(2) Promotion Leading Up to Launch Day

The sourcing process was designed to 1) attract a maximum number of eligible applicants, 2) be a
rigorous and open assessment system, and 3) provide good public exposure for SU Hubs, JICA, NINJA
and of course the story and progress of each startup.
Startup Uganda was allowed to lead the promotional messaging for the accelerator program to
publicly showcase strategic collaboration among the top Startup Hubs in Uganda. The branding of all
media promotions was developed by The Innovation Village. It included the logos and mentions of all
key players, including JICA, NINJA, Startup Uganda, SU Hubs, and members of the JICA Task Force.
The Innovation Village then shared the advertorial content with the other SU Hubs, JICA, and the JICA
Taskforce for approval. The link to the marketing and communications material has been added to the
Appendix.
An official landing page for the NINJA Accelerator Uganda 2021 (ninjajica.co.ug) was created to host
all the information necessary for businesses interested in applying as well as the general public. It
included:
1. the link to the official application form
2. information on the background of JICA, NINJA, and this AP program
3. key objectives of this AP program
4. eligible applicant candidates, why one would want to join the program, Level 1
selection criteria, timelines, and the FAQ section answering relevant questions that interested
applicants might have.

The promotion process started on Friday 30th July 2021 to create anticipation and the necessary build-
up to the Launch Day that was rescheduled to 6th August 2021.
*Note: The content in the landing page ninjajica.co.ug was later replaced twice. The landing page has
therefore been used for three different occasions:
1. July 30, 2021: Sourcing for applications for the NINJA Accelerator Program
2. Dec 7, 2021: Promotion of Online Final Pitch Day (Jan 12, 2022)
3. Jan 16, 2022: Showcasing the five startups and their individual progress, as well as
events of the NINJA Uganda over the past half year
(3) Launch Day Event
The NINJA Program was launched on the 6th of August, 2021 in a “hybrid” event, meaning it was
broadcast on online channels as well as onsite with panelists. The panelists were as follows:
・ Uchiyama Takayuki : JICA Uganda Chief Representative
・ Muhame Ivan: Senior Program Officer- Infrastructure and Private Sector -JICA Uganda

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・ Collin Mugasha Babirukamu: Keynote Speaker, Director E-government Services, NITA Uganda
・ Teddy Ruge: Co-founder, Hive Colab (Moderator)
・ Nordeen Mbekeka: Business development lead - Outbox (Moderator)
・ CK Japheth: Team Lead - Innovation Village
・ Richard Zulu: Founding Partner - Outbox Uganda
・ Barbara Mutabazi: Co-founder and Managing Partner, Hive Colab
・ Otim Gerald: Founder - Ensibuuko
・ Jun Shiomitsu: Founder - AVODA Group, JICA Task Force Representative
・ Shigeru Handa: Director - Asia Africa Investing and Consulting Ltd, JICA Task Force
Representative

Figure 7-1 Launch Day Event

Source: NilePost

The general response to the launch event from the audience was positive with viewers recognizing
the role that JICA has played in supporting the local ecosystem. JICA’s role in the ecosystem was further
reinforced by the fact that Ugandan startup M-Scan won the overall NINJA competition last year in
which 19 African countries participated.
The panelists shared information that was vital in explaining the background and objectives of the
NINJA Accelerator program. It also expounded upon the eligibility criteria and the application process
thoroughly.
Speeches were made by JICA Uganda Chief Representative Takayuki Uchiyama, Director of NITA
Uganda Collin Babirukamu, Innovation Village Team Lead CK Japheth, Outbox Uganda Founding

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Partner Richard Zulu, and Hive COlab Co-founder and Managing Partner Barbara Mutabazi.

Figure 7-2 Article on the Local Newspaper

Source: NewVision

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(4) Marketing activities and call for applications
The content from the Launch Day was used to promote the accelerator program at a country-wide
level both online and through traditional marketing strategies. The call for applications was published
in the most-read local newspapers (New Vision and Daily Monitor), aired on the local TV stations (NTV
Uganda) and the local radio stations (Capital FM and Sanyu FM). The social media posts were promoted
by paid influencers and popular bloggers. All promotional content published can be seen here.
The call for applications began on Launch Day through a rolling marketing campaign to increase
visibility and collect applications up to the initial deadline of August 22nd. The sourcing anchor (The
Innovation Village) prepared a detailed promotion plan with frequency, target audience, and channels
for the marketing campaign. The JICA and JICA Taskforce involved in the conception, timing, review,
and approval of all advertorial content.
Furthermore, SU Hub held two info-sessions on 18th and 26th August, led by Barbara Mutabazi,
Richard Zulu, and Jun Shiomitsu to help provide guidance to SUs who were interested and had inquiries
on the application process.
Due to the short period of time between the launch and the initial deadline, the deadline for
applications was moved from 22nd August to 31st August 2021.

(5) Receiving applications

The website portal (ninjajica.co.ug) acted as the central point of collection for applications. A
comprehensive application form submitted by each SU for the JICA AP included:
・ Business model and plan with its relevant track record
・ Photocopy of Articles of Incorporation, Memorandum of Incorporation, and URSB Certification
・ Expectations for the JICA AP
・ Audited/ Management books of accounts showing $50k annual turnover or higher
・ Summarized pitch deck for growth (preferably $0.5-1 million size)
・ Bio, photo, and contact information for the management team
・ Company profile
・ Short introduction video (if available)

(6) Evaluation and selection process

Figure below shows the summary of the number of applications received and the resulting number of
qualified startups after each assessment stage.

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Table 7-2 Summary of the number of applications received and the resulting number of
qualified startups

Total number of applicants 100

Number of startups longlisted after Level 1 Assessment 49

Number of startups shortlisted after Level 2 Assessment 12

Number of startups that participated in Level 3 Assessment 11

Number of startups selected to join the NINJA AP 5

Source: Compiled by the Research Team

100 businesses from various sectors applied. Three levels of assessment were used to select the finalist
startups.
・ Level 1 longlisted 49 startups using an eligibility and document quality assessment.
・ Level 2 shortlisted 12 startups from a deep dive focused on business models.
・ Level 3 selected 5 finalist startups using a pitch day.

a) Assessment Level 1
For this level, the startups had to meet all the eligibility criteria as spelled out in the application form.
We agreed to be flexible with some of the requirements depending on the quality of the applications.
The assessment grouped the results as shown below:
 Pass: Met all eligibility criteria.
 Fail 1: Did not meet one or more of the eligibility criteria (other than annual revenue).
 Fail 2: Met all eligibility criteria but annual revenue was under $50,000 and above $20,000.
 Fail 3: Met all eligibility criteria but annual revenue was $20,000 or lower.
It was agreed that businesses in “Fail 2” were still eligible for Level 2 since they missed the revenue
target but still made revenues of above $20,000.
A total of 49 businesses made it through from the first level of assessment. This list was referred to
as the “Longlist”. The industry breakdown of the Longlist can be seen in Figure below. (NOTE: some
startups overlapped over more than one industry)
Sectors: Agri, Fintech, Education, Health, Green Business and IT were the popular sectors accounting
for over 70% of the businesses.

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 Figure 7-3 Sector Distribution of applications
Source: Analysis by Research Team based on applications

b) Assessment Level 2
The target for this level was initially to select a list of 10 businesses (referred to as the “Shortlist”)
with high growth potential from the 49 startups on the “Longlist”. The JICA Taskforce worked together
with the SU Hubs for this assessment, pairing each SU Hub with a member of the JICA Taskforce:
・ The Innovation Village & Rakuten
・ Hive Colab & Asia Africa Investment and Consulting Company
・ Outbox & Avoda Group

The criteria below were used, each with a specified weight assigned to it:
Relevance and Impact (30%)
・ Mission/Vision: Does the company have a clearly defined Mission and Vision? (10%)
・ Problem/Needs: Is the problem well defined? Are the needs clearly described? (10%)
・ Solution: How well does the solution address the challenge? (10%)

Feasibility (20%)
・ Team: Does the team comprise of human resources with experience in the related field? (10%)
・ Market traction: Is there an existing and growing market for the solution? (10%)

Readiness and Traction (30%)

・ Profitability: Is there a clear and sustainable business model? (15%)

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・ Future Growth Strategy: Does the company's development plan promise impact, growth and
returns for the investor? (15%)

Innovation (20%)
・ Solution uniqueness: How many competitors are in the market? What market share does the
business have? (10%)
・ Competitive advantage: What is the competitive advantage of the solution over others in the
market? (10%)

Below are the businesses that made it through Assessment level 2.

Table 7-3 Score of Assessment Level 2

Rank Evaluating. Team Industry Japan Uganda Average

Group Score Score

Food and

1 AAIC-Hive Endiro Direct Agriculture 76 70 73.0

2 AAIC-Hive Akellobanker Finance 73 70 71.5

3 AAIC-Hive Easy Matatu Mobility 73 68 70.5

4 Raku - TIV ChapChap Africa Limited. Finance 69 71 70.0

5 Raku - TIV Xente Finance 65 74 69.5

6 AAIC-Hive M-SCAN Health 64 68 66.0

7 AAIC-Hive Innovation Streams Limited Health 52 73 62.5

8 Raku - TIV Patasente Finance 62 61 61.5

9 AAIC-Hive HEALTH SHORE Health 68 54 61.0

10 Raku - TIV Laboremus Uganda Ltd Finance 49 73 61.0

Agro Value-Chain Food and

14 AAIC-Hive Management Limited Agriculture 54 59 56.5

UniFreight Cargo Handling

15 AAIC-Hive Limited Logistics 64 45 54.5

Note:

JICA Tokyo added Agro Value-Chain Management Limited and Unifreight Cargo Handling Limited even though

they had not made it into the top 10 of the Level 2 assessment

Source: Scoring result by evaluating groups

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c) Assessment Level 3
This final assessment took place on Friday 10th September, through pitches from the startups in front
of a physical and virtual audience consisting of the JICA Taskforce members, SU Hubs committee and
a select panel of ecosystem players that the SU Hubs and the JICA Taskforce sourced.
Onsite, JICA Uganda Chief Representative Takayuki Uchiyama participated as a judge, together with
the following ecosystem players who were selected because they satisfy at least two of the following:
1. their interest in the JICA NINJA program
2. their ability to either invest into NINJA businesses or connect JICA with ecosystem investors
later on
3. their knowledge and experience in the Ugandan startup ecosystem

Below are the list of judges who participated in Assessment Level 3:

Table 7-4 List of Assessment Level 3 Judges

Judge Title/Role Organization

Banks

1. Anthony Kituuka Executive Director Equity Bank

2. Kezia Dorothy Asiimwe Head of Finance Equity Bank

3. Diana Nansikombi Regional Head EMDOs, East & UBA

Southern Africa

4. Sophia Nabbona Head of Credit UBA

5. Joel Bamwise Manager Programmes Stanbic Business Incubator

Venture Capital & Fund Group

6. Alex Rumanyika Strategy Team Lead NSSF (Hi Innovator)

7. Andy Kristian Agaba Founder/CEO Hiinga Group

8. Danstan KisuuleAA Founder/CEO Y-Save

9. Noah Owomugisha Technical Expert aBi

Angel & Entrepreneurs

10. Teddy Ruge Founder/Co-founder Raintree Farms / Hive Colab

11. Iliana Bjorling CMO Jumia Uganda

12. Gerald Otim Techprenuer/Founder Ensibuuko

13. Michael Mukasa Chief Commercial Officer Roke Telkom

Advisor Group

14. Martha Olwenyi Results Measurement Consultant UNCDF

15. Pearl Nimusiima Associate Open Capital

Source: Attendance list of judges

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 From online, judges from overseas also participated:
・ Mobility 54 – Daiki Sato
・ Rakuten Europe S.A.R. – Shotaro Yamanaka
・ JICA Tokyo – Naonobu Fuwa, Rika Karikomi

The assessment criteria for this final round was as follows:

Quality/Feasibility of the Proposed Plan (50%)
・ Profitability (20%)
・ Scalability (15%)
・ Social Impact (15%)

Originality/Uniqueness/Innovation of the Proposed Plan (30%)

・ Leveraging IT for problem solving (15%)
・ New ideas/technique in the industry (15%)

Experience and research (20%)

・ Company has experience in the related field (10%)
・ Understanding of the market for solution (10%)

After compilation of all judges’ scores, the results of the final assessment round were as follows,
where the top 5 were selected to be in this NINJA accelerator program.

Table 7-5 Level 3 Assessment Results

LEVEL 3 ASSESSMENT RESULTS
No. Startup Name Sector Total Score
1. Chap Chap Africa Limited Finance 72.2
2. Endiro Direct Food and Agriculture 68.0
3. Patasente Finance 66.5
4. Akellobanker Food and Agriculture 66.4
5. Easy Matatu Transport 64.6
6. Laboremus Uganda Ltd Finance 64.5
7. M-SCAN Health 64.1
8. Innovation Streams Limited Health 62.9
9. Agro Value-Chain Management Limited Food and Agriculture 54.5
10. Unifreight Cargo Handling Limited Logistics 52.2
NOTE:
*Health Shore did not turn up for the Level 3 assessment
*Xente was late due to scheduling complications
Source: Assessment Level 3 results

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 Figure 7-4 Assessment Level 3 Photo

(7) The Five Finalists

These are summaries of the five SUs that cleared all three assessment levels, and as a result qualified
for the JICA NINJA Accelerator Program.

a) ChapChap Africa
Sector: Finance
Website: https://chapchap.co/
Pitch Deck:
https://drive.google.com/file/d/1JtGjM6AswROV-jb5NJMSVEaDTBak0tPx/view
Summary of business: ChapChap is seeking to increase access and uptake of digital financial services
such as mobile money services by low-income individuals and Micro, Small, and Medium Enterprises
(MSMEs) by eliminating barriers to access such convenience, stringent onboarding requirements such
as bank accounts, formal business registration, initial starting capital, record management and
bureaucratic approval processes that limit the services to urban and peri-urban areas where MSMEs are
more likely to meet these requirements and the rural population has to travel long distances to access
these critical financial services.

“NINJA re-enforces and validates the work at ChapChap and the impact we are creating.” Emmanuel
Emodek, Team Lead, ChapChap.

b) Endiro Direct
Sector: Agriculture and Food

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 Website: www.endirocoffee.com
Pitch Deck: https://drive.google.com/file/d/1-y1wRvqHSzZq8w1JMUFID8hn1KNN68nP/view
Summary of business: African smallholder farmers are subject to global price fluctuation and
middlemen. Awareness and reach of African produce are nascent. Our B2B e-commerce channel secures
demand by connecting buyers and shifting profitability to producers.

“Endiro Direct is thrilled to be able to participate in the NINJA Accelerator program and work with
the team to develop a solution that solves a real and often difficult challenge of access to markets for
many coffee producers in Uganda and Africa.” Gloria Katusiime, CEO, Endiro Direct.

c) Patasente
Sector: Finance
Website: https://patasente.com/
Pitch Deck: https://drive.google.com/file/d/1F2u0YSaZ6IhsNIqDQEtWvBQWeP9ntxlo/view
Summary of business: Small businesses often fail to fulfill orders because they can’t meet the payment
terms of their suppliers and customers. Our solution is a factoring platform they use to purchase or sell
on favorable payment terms.

“Being in the Ninja Accelerator has come at a good time in our growth trajectory. It is an opportunity to
learn more, build new capabilities, further refine our product, and lay the foundation for both local and
regional scale.” George. W. Bakka, General Manager, Patasente.

d) Akellobanker
Sector: Agriculture and Finance
Website: www.akellobanker.com
Pitch Deck: https://drive.google.com/file/d/1tYDU75OpgqMxwjpGaq4sg9ES0GOouL2Q/view
Summary of business: We are a market leader in agric finance and tech. Since 2016, we have
facilitated credit and market linkages worth $1M to 120,000 farmers who for centuries failed to increase
their production and productivity due to limited access and affordability.

“The NINJA accelerator win will go a long way in building our operational, technological and financial
capacity to scale rapidly in Uganda and to expand to other markets" Jean Onyait, Founder,
AkelloBanker.

e) Easy Matatu
Sector: Mobility
Website: https://easymatatu.com/

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 Pitch Deck: https://drive.google.com/file/d/1LWXUW1njbxo6J0JiWts9evs1o2l9T4yb/view
Summary of Business: Easy Matatu is a tech platform reforming inaccessible, unreliable, unsafe, and
dirty public transport in Africa by improving existing informal matatu services and connecting 1m
Ugandan commuters to affordable, safe, reliable, and clean transportation.

“Joining the NINJA accelerator means a lot to us because it is an opportunity for Easy Matatu to access
business, technical, and investment support and visibility as we work to fix public transport in Africa.”
Andrew Lema, CEO, Easy Matatu.

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 Implementation of the Accelerator Program (Pilot
Project)

Upon confirmation of the 5 finalist startups, they were launched in a 3 month accelerator program to
get the ready to pre-Series A investment stage. The SU Hubs took charge of this, with each focusing on
a particular aspect:

Table 8-1 Roles and Responsibilities of each Hub during AP

Stakeholder Key Roles/Responsibilities Outcome/Deliverables

- Overall Project leadership on all activities - Progress Reports

- Designing Accelerator Curriculum - Accelerator Curriculum

1 Hive Colab - Overall management and running the - Final Reports

Accelerator program

- Leader on Promoting the project - Selection and Sourcing

- Designing Project Communication Report
Materials in liaison with other SU - Designing Promotion
Hubs and get approval materials
- Responsible for Managing the sourcing - Running all promotions

The Innovation and selection Process including and ads (Both Print and
2
Village (TIV) - Leader on press release online)
- Lead other SU Hubs on FAQs and all - Project Posters
related inquires about the project
- Lead on the business analysis during
selection of startup applicants
( Assessments 1,2&3)

- Organizing and Management of all - Progress/Events

project events Activity Reports

3 Outbox - Press Lease - Key Learning/

- Demo/Pitch-day Management

Source: Research Team

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 Furthermore, each SU was assigned to one SU Hub, who provided an “Anchor” (ie. analyst and
contact person) for the SU assigned to it:

・ Chap Chap: Michelle Nabagesera (Outbox)

・ ENDIRO Direct: Davis Luboyera (Hive Colab)
・ Patasente: Tevin Rwamahe (The Innovation Village)
・ Akello Banker: Barry Wojega (Hive Colab)
・ Easy Matatu: Michelle Nabagesera (Outbox)

However given the fact that pre-Series A level accelerator programs was virgin territory in Uganda,
Jun Shiomitsu from the JICA Taskforce engaged regularly with the five SUs to further support the
coachings that the SU Hubs were offering, with weekly check-ins and individual mentorship sessions
with each SUs , focusing upon investment finance and business model.

(1) Onsite Due Diligence

To ensure smooth operations of the AP, an SU due diligence exercise was done between 27th
September and 2nd October on the selected five startups to ensure that the right businesses have been
selected. The purpose of the due diligence process was to achieve the following objectives:
・ Determine the businesses’ potential for impact, sustainability and profitability within their
respective sectors
・ Assess the risks and opportunities of the proposed investment considering the capacity of the
business and Ninja Accelerator Program initiative to address the risks and capitalize on the
opportunities available
・ uncover the loop holes or gaps the startups may be experiencing, missing links to scale up their
business models and be investment ready.

The findings from the due diligence and needs assessment made by visiting business analysts and the
startups were as follows:

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 Table 8-2 Due diligence result
STARTUP Year(s) in
Summary Findings – Narrative & Comments
(Business) Operation

Endiro Direct New ・ Funding Decision for the Ninja Program needs to take into account that this is a
subsidiary of Start-Up that is undergoing registration to become formally functional within the

Endiro next 60 days.

Coffee ・ The budget and activities presented by Endiro Direct need to be negotiated in detail
to have agreed milestones with the company’s interests note

Akello 4 ・ There is a missing link on marketing and business development, the governance
Banker set up to completion.

(Quest ・ The business has a financial modeling that meets investor level requirements.
Digital)

ChapChap 5 ・ The company needs to upgrade their system such that they do not lose any money
while the system is offline.

・ The company needs to hire more software engineers to help with keeping the
system afloat and reduce down time when the system is offline.

・ ChapChap requires guidance on their growth strategy and market penetration as

they intend to move to other major cities soon.

・ The company is struggling to acquire a license from their central Bank, they
require assistance on matching their value proposition to what the Central Bank

requires.

・ A finance consultant is required to rectify the classification of the amortization

cost and rectify any other issues they could have with their finances

Patasente 3 ・ Huge risk of fulfillment especially on the buyer side and need to control payment
terms. This can be achieved through water tight contracts with both suppliers and

buyers.

・ Need to build capacity to track (impact) i.e. the % increase of revenue from
farmers and other beneficiaries.

Easy Matatu 3 ・ The business has a simple business model that has the ability to scale even to other
major cities across Africa.

・ The business has not yet broken even as majority of the costs go towards paying
the drivers for the routes taken despite the matatu’s not being full to capacity.

They also have high operational costs that have eaten the majority of their profits.

・ The company requires support regarding how to account for Grants once they are
received as well as the taxes and regulations that revolve around grant

management.

Source: DD reports from Hubs

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(1) Individual Curriculum
The accelerator program was executed starting September 27th, beginning with a one week of self-
assessment by the SUs upon themselves. The self-assessments used Village Capital’s ABACA VC self-
assessment tool.

Based upon the results of each SU’s self-assessment, their individual Anchors helped create their
individual curriculum and select appropriate mentors for them. The support offered was based upon
each business' level of need that was identified at the self-assessment stage. The assigned anchor
reviewed the business plan of the startup and supported them in filling the gaps. The individual
curriculum included, among others:

・ Business plan review and update

・ Assessment results gap closure: at this stage, each business with its analyst worked through the
gaps identified during the application stage, the assessment stage and the business plan review
stage to ensure that these were worked on and closed before the business could be presented to the
pool of investors.
・ Prepare optimal collaterals like; elevator pitch, teaser video, financial projections, information
memorandums and an optimum investor play to attract investors
・ Planning and executing an effective proof of concept exercise or product, with a budget of up to
$18,000
・ Subject matter expert coaching; this was provided to each SU after the business diagnostic results
and in agreement with the SU and the analyst/SU hub.
・ A list of coaches and mentors was provided to the businesses and they were also allowed to
suggest industry leading individuals they wanted us to invite into the pool.

(2) General Curriculum

In addition to the Individual Curriculum, a General Curriculum was also delivered online, divided
into four sections, each led by one of the SU Hubs, except for the final one, which was led together by
all three of the SU hubs. The content and dates of the General Curriculum was as follows:

SECTION 1 | Pre- Series A Leadership Development

7th -8th October 2021
Hive Colab

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 Table 8-3 General Curriculum Section 1

SECTION 1 | PRE- SERIES A LEADERSHIP DEVELOPMENT

Session Date Time

7th October 2021 9:00am to 10:00am

Module One: Leadership Development

7th October 2021 10:00am to 11:00am

Module Two: Post Investment Planning to maximize ROI

8th October 2021 9:00am to 10:00am

Module Three: Building A Team to Reach Scale

8th October 2021

Module Four: Understanding Key Performance Indicators

(KPIs)

Source: Survey Team

SECTION 2 | Product Development for Rapid Scaling

21 – 22nd October 2021
Outbox

Table 8-4 General Curriculum Section 2

SECTION 2 | PRODUCT DEVELOPMENT FOR RAPID SCALING

Session Date Time

21st October 2021 9:00 am to 12:00 pm

・ Module one: Defining value/growth hypothesis

・ Module Two: Business Modeling

22nd October 2021 9:00 am to 12:00 pm

・ Module three: Understanding the Market

・ Module Four: The Problem–Solution Fit

・ Module Five: The Product–Market Fit (Analyzing the

Product)

Source: Survey Team

SECTION 3 | Customer Development & Validation

28 – 29th October 2021
The Innovation Village

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 Table 8-5 General Curriculum Section 3
SECTION 3 | CUSTOMER DEVELOPMENT & VALIDATION

Session Date Time

28th October 2021 9:00 am to 12:00 pm

・ Module One: Understanding Users

28th October 2021 9:00 am to 12:00 pm

・ Module Two: The Competitive Landscape

28th October 2021 9:00 am to 12:00 pm

・ Module three: Telling Your Brand Story

29th October 2021 9:00 am to 12:00 pm

・ Module Four: Prioritizing Growth Opportunities

29th October 2021 9:00 am to 12:00 pm

・ Module Five: Refining Revenue Streams

Source: Survey Team

SECTION 4 | Finance, Valuations & Investment

Beginning 19th October
Hive Colab, Outbox, The Innovation Village

Table 8-6 General Curriculum Section 4

SECTION 4 | FINANCE, VALUATIONS & INVESTMENT

Session Date & Time

19th October 2021

・ Module One: Refining Revenue Model and Financial Modeling 10:00 to 12:00pm

19th October 2021

・ Module Two: Different Types of Investors and Stages of Funding 10:00am to 12:00pm

26th October 2021 10:00am to

・ Module three: Key Financial Drivers and Metrics 12:00pm

26th October 2021

・ Module Four: Effective Negotiation 10:00am to 12:00pm

2nd November 2021 10:00am to

・ Module Five: Effective pitching 12:00pm

2nd November 2021 10:00am to

・ Module Six: Exit Strategy 12:00pm

Source: Survey Team

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 Each SU was required to do a proof-of-concept exercise to showcase during the final Demo Days.
For some of the businesses, it was an exercise to prove that a $0.5-1 million investment can help improve
and scale their existing business, for others, it was to prove that a new product or service could
significantly improve revenue and/or scalability.
Each SU was given US$18,000 each in grants to complete their POC exercise. The funds were sent
initially by AAIC to HIVE Colab, who then disbursed 75% of the full amount on 26th October, with the
remaining 25% to be disbursed upon receipt of a full POC report from each SU at a later date within or
after December.

(1) Chap Chap Africa

Objective (1):
To address a key barrier to scale i.e. system scalability by increasing the number of customer
transactions the system can process simultaneously

Desired Outcome(s):
Increase in the number of products available to customers on the ChapChap Platform
Increase in the percentage of successful transactions facilitated by the ChapChap Platform

Success metrics/Key Indicators:

Onboarding of 3 additional products/features to the ChapChap System
Atleast 90% of transactions made on the ChapChap platform should be successfully processed by the
system

Objective (2):
To develop a strategy to guide efforts for regional expansion by identifying strategic locations for
expansion through conducting market research.

Desired Outcome(s):
Identifying 5 regional cities into which the company can expand
Develop budgets for the first 12 Months of expansion activities

Report:
ChapChap submitted a work plan that focused on implementation of technology upgrades to the
Company’s platform and conducting of market research to identify and quantify new expansion
opportunities within the regional cities of Uganda. The progress on both items was stifled by a

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combination of competing demands and limited time. The company therefore requested to focus the
budget on technical work as this aspect of the project was of priority and the associated costs were high.
The funds were earmarked to facilitate the hire of consultants to support a comprehensive revamp of
the company’s technical infrastructure.
The project was split into two phases;
Phase I:
Review of existing software stack, optimization and stabilization to reduce the transaction
failure rates, cloud service bills and improve transaction processing speeds. The phase is at 90%
as the final changes to the system are being tested for deployment.
Phase II:
Redesign of cloud infrastructure, backend systems and customer interfaces. The preliminary
review of the platform during phase I identified constraints in scaling due to the current
implementation of the system. The consultant recommended a complete revamp of the system
and this phase is expected to take 3 months (January 2022 to March 2022). The phase II
initiation meeting is expected to take place on Tuesday 11th January, 2022.
The preliminary report by the consultant can be viewed from the link below;
https://drive.google.com/file/d/1PJ_2O5PJyInpSGfwVywslS6CeaMpHCC0/view?usp=shari
ng

Way forward and actions

The team will continue to implement the second phase of the technology upgrade while
concurrently supporting the existing platform and onboarding new small businesses onto it. The
company also plans to hire new talent in Sales and Marketing to guide the expansion market
presence in regional cities across Uganda in preparation for the planned cross border expansion.

(2) ENDIRO Direct

Objective(s):
To develop an e-commerce platform that can connect global consumers to locally produced good-
quality coffee, and other agricultural products

Outcome(s):
Fully operational e-commerce platform, integrated with mobile money and other online payment
methods

Success metrics/Key Indicators:

At least 1 shipment of 60kg of coffee to an international consumer (possibly in Japan) by the end of
October/beginning of November

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 Report:
Based on the proposed work-plan, we have achieved all of our targets for development of a prototype
and branding assets within budget, as well as successfully begun onboarding farmers.

Development of Prototype & Branding Assets

Endiro Direct contracted a third-party company to accelerate the build of the platform prototype. The
website was delivered according to technical specifications with back-end inventory management and
supply chain integration.
Endiro Direct also required the assistance of a branding agency to develop the look and layout for
Endiro Direct for a B2B audience. A redesign of the Endiro Direct logo and layout of the website was
delivered, as contracted. See images below for visuals of deliverables.

Figure 8-1 Endiro Direct Pilot Webpage

Source: Endiro

Onboarding Farmers
The Endiro team had a field trip to the remote farms of Bududa to meet with the team leads of the
Bukalasi Women’s Association. Our purpose was to discuss the objectives of the platform to demonstrate
the value it would bring them in anticipation of the 2022 coffee season. They agreed to onboard and

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work closely with all the farmers to check and improve the quality of the coffee supply on Endiro Direct.

Investor Readiness
Endiro Direct contracted the assistance of an Open Capital consultant to help refine our financial
model to be able to determine the investment need and valuation model for investors.

Way forward and actions

The remainder of the funds will be utilized to test and iterate the Endiro Direct platform. We are in the
process of onboarding roasters in the US, UK, and UAE to provide UI/UX feedback and set up the
export network. In Jan/Feb, we will be testing our supply chain set up and integration of our platform
and logistics network from order to delivery. The funds will be used to pay our logistics partners to test
out our supply network. We will also be leveraging our consultant to refine our pricing strategy and
business financial model.

(3) Patasente
Objective(s):
1) To address a key barrier to scale: Increased usage of the Patasente system by Patasente Agents
and Principals for trading
2) To address a key barrier to scale: Upgrade System with Customer feedback and make it available
in both Web and Mobile App
3) To address a key barrier to scale: Have a high referral rate for the system to other users
4) Increased System Usage for either payments or supplies data entry in the MIS Module

Success metrics/Key Indicators:

1) Five agents and fifteen principals (cooperatives) actively using the system
2) High Customer Net Promoter Score

Report:
MIS Development
We developed the MIS prototype and showcased it to test users, collected feedback, integrated
improvements and took it to market – potential users as a Web App.
・ Made Live the MIS Module in the Web App. The capabilities include – adding suppliers, applying
deductions, recording advance payments, receipting deliveries, paying suppliers, and sending
messages to farmers on every delivery to the collection centers.

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・ Linked the QR enabled SenteCard offered to farmers to the MIS. They can be used to cash out
from Patasente agents or shop for inputs from the surrounding retail shops and have it reconciled
with supplies in the MIS.
・ Developed the Mobile App UI interface for API communication with the Web App.
・ Developed the logic code for the Index Algorithm for Credit Limit Setting in R. It shows the credit
limits for the principals in their accounts.

The remaining aspects for the system upgrade will be completed within the month of January include:
・ Developing the MIS Mobile App API. This was delayed to complete a working prototype in the
Web App such that we implement a working system in the Mobile App.
・ Developing Visualization Charts for MIS information.

Figure 8-2 Web System View MIS Module Linked with Other System Modules Customer
Rollout
Source: Patasente

As Patasente had a working prototype, we began rolling out the web app MIS system to our customers.
To date;
・ Onboarded 3 more buyers [ Amos Dairies, Cecofa, Crown Supermarket)
・ Onboarded 4 more aggregating agents [ Ntasa, Lumu, Lada, Nattete ]

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・ Onboarded 27 dairy farmers cooperatives (DFCs) with a combined membership of 1,430 farmers.
[ Bukanga, Rwempego, Kyabugenyi, Kanyabahiha, Kyakabunga, Rwentango, Akatongole, Akati,
Ibaare, Kanyanya, Rwenshade, Akatooma, Njira, Kikatsi, Rwamangore, Nyabagando, Rukaka,
Kashogi, Bukaka, Mbaba, Rugarama, Kureera, Shuuku, Nyabando, Kabuyanda, Ngoma Dairy]

Transactions Performance over the last 3 months [ October, November, December ]

・ 8 buyers
・ 7 Principal Aggregators
・ 624 factored invoices
・ UGX 6, 730,853,771 /= in factoring/trade volumes

Figure 8-3 Onboarding Kanyabahiha Farmers onto Patasente | Principal Aggregator

Collecting Milk from DFC
Source: Patasente

Way forward and actions

As we further roll out the service, the next milestone is to further deepen and polish our offering. On
our to do list for January is.
・ Make the MIS available in the Mobile App and improve features based on user feedback.
・ Offer devices to cooperatives/collection centers that lack them on installment basis.
・ Raise additional funding to offer our service to our expanding customer base.

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(4) Akello Banker
Objective (1):
Increasing farmer activity on the platform

Outcome(s):
1) Increased farmers activity on the platform
2) Increase Sales and Revenues for Sustainable Growth

Success metrics/Key Indicators:

Number on New farmers, Number of Transactions, Change in transaction Revenue

Objective (2):
Increasing Service providers Activity on the Platform

Outcome(s):
Increased service providers on the platform

Success metrics/Key Indicators:

Number of Transactions, number of farmers served, launch output markets, increase in revenue

Objective(3):
Improve on Compliance & Administration

Outcome(s):
New structures and Document in place and operational

Success metrics/Key Indicators:

1) 5 Board members
2) Business Documents in place
3) 2 New staff hired

Report:
Akello Banker has achieved over 80% of the expected deliverables based on the submitted work plan.
・ To increase reach through the media, spot messages were produced and contracts signed with two
stations to broadcast the messages in 3 languages - Langi, Acholi and English.

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・ To integrate digital agronomy, a data scientist was contracted. The documentation of the algorithm
is being undertaken in consultation with National Agricultural Advisory services (NAADS) and
National Agricultural Research Organization (NARO).
・ A recruitment drive for Super agents was conducted in Northern Uganda, 5 Super Agents (buyers
and sellers of produce) and these include:
○ Harvest thrive
○ Gloford, Lango cooperative
○ Lira resort
○ Alutkot SACCO
○ These are currently undergoing contracting and will be trained and onboarded in January.
○ No major branding activity was undertaken owing to the delay in the delivery of the market
penetration strategy. The consultant for the market penetration strategy was hired and the first
draft of the strategy is available for review.
○ We procured a motorcycle for the Gulu regional marketing manager.

Figure 8-4 Motorcycle for the Gulu Regional Marketing Manager

Source: Akellobanker

・ The board is being set up and we are embarking on board documentation after completion of board
member formal appointments.
・ HR experts engaged for headhunt recruitment of the Business Development and Marketing and
Sales manager. The Marketing and Sales has been recruited and will commence work in January.
・ We engaged a consultant to help with the process of acquiring all the necessary business
documents. Key documents are under review and Virtual Data Room set up with documents being
posted.
・ A consultant is undertaking a Financial Model and Valuation report which is due by Dec 17, 2021.

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 Wayforward and actions
○ Branding is being completed and the output platform will be launched in January. (Farmer
output for Off-takers)
○ The POS has been developed and the implementation plan is being set up for execution.
https://pos.akellobanker.com. The existing clients are being migrated.

Figure 8-5 POS in development

Source: Akellobanker

Increasing outreach visibility of service providers has not yet been undertaken since it required all the
money to execute. This will be executed in January using the cash balance.

(5) Easy Matatu

Objective (1):
To address a key barrier to scale; customer retention through improving the quality of the vans.

Objective (2):
To address a key barrier to scale: customer retention through building a tiered loyalty points program
that will increase the loyal customer base

Outcome(s):
50% of all active customers take 10 or more rides per month

Success metrics/Key Indicators:

50% of 10+ riders
3% monthly churn
88% occupancy rate

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 Report:
To tackle operational excellence Easy Matatu ran a lease model pilot hiring high quality matatus daily
to run its peak hour trips. This enabled us to have more control over the drivers on the platform and to
guarantee clean, timely and safe rides 100% of the time.

To tackle customer retention Easy Matatu set out to build a points-based loyalty program dubbed EM
Rewards enabling riders to earn points per trip and exchange them for merchandise at the EM shop. This
points system was designed to boost customer loyalty and increase the number of rides per user per month.

Pilot Results
From the pilot we saw an increase in the occupancy rate due to strong value proposition delivery i.e.
consistently clean, reliable and safe rides. In addition, issues like late departures dropped greatly.

Figure 8-6 Pilot Data Analysis

Source: Easy Matatu

We saw a 25% improvement in the rides per user due to the loyalty program and a 6% increase in
customer satisfaction rating to 4.62 out of 5.

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 Figure 8-7 Pilot Data Analysis
Source: Easy Matatu

Way forward and actions

Following a successful lease model pilot and EM rewards program we are increasing the number of
leased vehicles on the platform from 8 to 12 operating 72 departures per day with a target to have 30
leased vehicles on the platform operating 180 departures per day by the end of Q1 2022. Also,
development is in progress to integrate the loyalty program into the user app with target completion
expected by Q1 2022. In addition, we launched off-peak intra-city trips to enable 100% utilization of
the leased vehicles and facilitate a ramp up of the vehicles on the platform.

(1) Open Day in Kampala

Open Day took place on Friday 19th November 2021 at Mestil Hotel in Kampala. In line with the
key deliverable for this project, this was aimed at creating more awareness about the NINJA Accelerator
Program in Uganda to fundraise and interest local invited investors, Banks, government and other public
–private sector innovators. The open day was also an opportunity to allow each NINJA AP participating
businesses to briefly speak about what they do. Furthermore, various local investment and financial
institutions had an opportunity to speak about what they do and how they invest. Thereafter, a
representative from the JICA TF and the SU hubs shared about the journey. The event keynote speaker
was the permanent secretary of the Ministry of Information Communication Technology & National
Guidance (MICT&NG), Dr. Aminah Zawedde. The open day was also positioned to prepare startups in
the accelerator for the demo day which was due in three weeks. The event’s targeted audience among
other stakeholders, included the general public and anyone who has interest in investing in the startup
ecosystem as it was a public event.
The Keynote speaker, the Permanent secretary of MICT&NG, Aminah Zawede (Ph.D.) thanked the

191
government of Japan through JICA for their long collaboration with the government of Uganda in
various sectors like education, research and development, health and now, in ICT and startup ecosystem.
She urged startups and businesses to exploit the government initiatives like Business Process
outsourcing (BPO) – an initiative of MICT&NG led by NITA-U, with representatives from major
leading hubs in Uganda (Hive Colab, Outbox, The Innovation Village among others). She encouraged
JICA through the representative of Japan in Uganda to support more training and transfer of technology.

Figure 8-8 Open Day Photo

Source: Survey Team

(2) Continued relationship management with all local potential investors

The JICA Taskforce also continued to reach out and maintain the relationships with the 8 strategic
ecosystem key players identified so as to keep them abreast with the developments of the program,
maintain their interest, and help them see the big picture of JICA’s involvement and the NINJA program.
These are also the potential local investors whose investment interest will give confidence to the
Japanese investors.
・ UBA
・ Stanbic Bank
・ Equity Bank
・ Y-Save
・ Hiinga Capital
・ XSML
・ NSSF(Hi Innovator)
・ Open Capital

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(3) Mock Pitch day
A virtual Mock Pitch day was held on Friday 5th November, 2021, where the five startups in the
accelerator presented their pitches to mimic the upcoming real Demo Day events. This was meant to
emulate a normal fundraising pitch in front of investors or potential business partners in real life.
The judges and panelists for the day were selected amongst the JICA Taskforce and business analysts
who have been mentoring these startups throughout the bootcamp:
1. Teddy Ruge Sondota Mbabazi – Hive Colab
2. Barry Wogeja – Hive Colab
3. Michelle Nabagesera - Outbox
4. Perez Mesinde – Outbox
5. Shigeru Handa - AAIC
6. Jun Shiomitsu - Avoda Group
7. Barbara B. Mutabazi – Hive Colab
8. Samantha Niyonsaba - Outbox
The judges accessed the pitch decks for the five businesses, observing the tone and analyzing the
content presented during the meeting.
There was a general agreement amongst all the judges and panelists, that all the five businesses had
made a remarked improvement in terms of the following:
・ Problem identification and exploration
・ Presenting their business models
・ The target market analysis
・ The investment ask
・ The revenue streams and plans for scaling up the business
・ The SU traction – in form of sales and revenue.

(4) Demo Day - Kampala Innovation Week

For the past 12 weeks, these startups have been immersed together, pushing themselves and their
startups forward, with SU anchors and mentors (local and international). The NINJA AP startups
were selected because they represent several significant trends going on today in Uganda’s startup
ecosystem and in the world of entrepreneurship and innovation. This public demo day event was held at
the side-lines of the Kampala Innovation Week (KIW) that took place on 19th – 24th November 2021.
NINJA AP participating Startups were allowed an opportunity to pitch to innovators, investors and
the public. This was crafted to give a brief presentation on their venture, and hope that perhaps the
audience can help with funding, introductions, partnerships, advice, etc. The Project viewed this event
as an opportunity to continue supporting startups to improve on their investor readiness of their business.

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The startups were each helped to prepare the required information packets about their businesses into a
format that can get investors' interest. Potential investors were offered the information packets at-least
a week to the demo day for their reference. Key information each SU was meant to prepare include: - A
short video story for each SU regarding their operations and any impact or traction they have had to date.

NINJA Startups participating in the Kampala Innovation Week (KIW) final day event

Figure 8-9 NINJA Startups participating in the Kampala Innovation Week (KIW) final
day event
Source: Survey Team

The participants at the demo day event included; Government representatives from institutions
managing entrepreneurship support initiatives (NSSF, Ministry of ICT and National Guidance),
development agencies (UNCDF, UNICEF, UNDP, UNFPA), representatives from entrepreneurship
support organizations under Startup Uganda, Investors, Banks, and Investment Advisors say from
Uganda Securities Exchange (USE) markets or Uganda Capital Markets Authority (UCMA) among
others.

(5) Demo Day - Uganda Emerging Tech Online Pitch Day

This pitch day was purposely meant for overseas investors in Japan, Asia and Africa, but was also
open to the public for participation. The event was held on January 12th 2022. This pitch day event was
to bring together at-least three actual investors from the East African scene and three other investors

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from Japan and other countries.

Figure 8-10 Landing Page of January 12 2022 Pitch Event

Source: Survey Team

Each SU had an opportunity to present their proposal for a period of seven minutes and receive 7
minutes of Q&A. Each pitch was preceded by their short video story or story of about 2 minutes. The
invited investors on this event were much hoped to make some offers to the SUs at this pitch day as a
winning prize.
The pitch day took a match making approach style of venture capital fundraising. Key strategic
potential regional and global investors with great interest in investing in the SUs in Uganda and Africa
were invited. These included: Mobility 54 – a Toyota Tsusho Group’s VC arm, Rakuten – one of the
largest e-commerce companies in Japan, Incubate Fund – a leading seed stage investor founded in 2010
with over $840 million AUM, Fukuoka Global startup center – a Japanese startups hub targeting
overseas markets and JICA.
Table 8-7 Panelists at the event:

Panelist Organization

Ryoichi Fukaya Rakuten Europe (Director)

Hideo Makinose Fukuoka Global Startup Center (Director)

Paul McInerney Incubate Fund (General Partner)

Hidenori Takada Mobility 54 (Director)

Shingo Morihata JICA - (Senior Director)

Source: Survey Team

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 The event attracted 186 applicants, of which 109 attended, with a steady average of 105 throughout
the program.
Introductions between the SUs and the investors were made using the information packets developed.
Overseas investors shall be brought on board through sharing startup profiles using our networks and
website.

(1) Businesses’ analysis

We carefully organized every recorded comment we received from all panelists and judges for each
business throughout the entirety of Assessment Level 2, Assessment Level 3, Kampala Innovation Week
Pitch Day, and the Online Uganda Emerging Tech Pitch Day. The analysis covered 8 different categories:
1. Scalability & Market Opportunity
2. Traction
3. Business Model
4. Cost/Revenue Model & Forecast
5. Social Impact
6. Quality of Ideas
7. Team
8. Pitch

The analysis was divided into three stages:

1. The 5 finalist businesses that made it through Assessment Level 3
2. The 12 companies that made it through Assessment Level 2 (Excluding the 5 finalist
companies)
3. The 49 companies that made it through Assessment Level 1

From the results of the analysis, we were able to summarize the general condition of the businesses
and also make some conclusions about the ecosystem.
The methodology used was as follows:
1. Every comment made by panelists and judges were analyzed, then categorized as a
“Positive Comment” or a “Negative Comment”.
2. The total number of “Negative Comments” were then subtracted from the total number of
“Positive Comments”.
3. The balance (i.e. “+/- balance”) was taken as the final score.

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 Figure 8-11 Summary of Feedbacks from panelists
Source: Survey Team analysis

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(2) Findings from the analysis
・ The category with the strongest final score, far above any other, was “Social Impact” (25),
indicating that Ugandan startups have an ability to communicate social impact well.
・ The category with the weakest final score was “Business Model” (-33), indicating that Ugandan
startups have a pronounced weakness in either designing or communicating solid business models.
・ The five finalist businesses clearly differed from the rest of the startups in that the number of
positive comments they received for “Scalability & Market Opportunity” and “Traction” had
positive final scores.

(3) Conclusions from the analysis

・ The strong demonstration of “Social Impact” by the startups shows a strong leaning towards
philanthropic or social grants in the Ugandan ecosystem. This is further confirmed by the weak
performance in the areas of their business and revenue models.

(1) Positives
Uganda’s startup ecosystem is advancing and most startups are ICT-enabled businesses.
・ Uganda in the past 3 years has seen a sudden increase in successful startup activity (i.e. exits,
$1M+ fundraises) and is evidently a space that has unaddressed, growing demand.
・ JICA NINJA Uganda was clearly unique in the accelerator space in that it targeted growth stage
(pre-Series A) businesses. This white space in Uganda does not yet have anyone else addressing it,
and should be explored.
・ The $18,000 for each participant to fund proof-of-concept exercises was a unique feature that was
greatly appreciated by the SUs and Hubs, and greatly helped position JICA NINJA’s brand as a
premium accelerator program. Other programs have offered similar levels of funding as grants or
cash prizes, but never as a POC funding.
・ JICA NINJA provided a platform for different accelerators to work together for one accelerator
program, the first time this has happened in Uganda, where one of the biggest challenges in the
startup sector is the fragmented ecosystem, according to our research.

(2) Challenges
・ Human resources/talent is limited and/or hard to find in the ICT sector. Business management
skills need to be enhanced, and platforms for employment matching must be strengthened.

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・ Japanese and global investor community still lack awareness of Uganda as an investment
destination.
・ There are challenges in the business environment such as, ease of starting new businesses,
unreliability of electricity and internet access, etc.
・ Business development support is limited, both in a number of the accelerators and the quality of
technical support requires scaling up.
・ There is a funding gap, especially at the early/growth stage.
・ The ecosystem is fragmented and not well connected with regional and the global ecosystems. As
such, the support networks and linkages are weak. Coordination among the 3 local accelerator
hubs was not smooth and presents an area for improvement.

(1) Positive feedbacks from participants

・ “The unanimous response from all related parties was that the Taskforce was quick and efficient
and provided the Startups and Hubs with the support they needed.”
・ “In my entire life as an entrepreneur and hub operator, nothing has ever been done like JICA
NINJA in Uganda.”
・ “The selection process that resulted in picking the 5 finalists was well thought out and
meticulous.”
・ “Associating with JICA as a brand has gotten a lot of people talking about us and reaching out to
us.”
・ “What I loved about the NINJA program was that, even before the start of the program, they
engaged us. So when the program started, they knew us pretty well already.
・ “The pre-application stage was great and very well done. It was so serious it scares the non-serious
players.”
・ “The selection of the 5 companies showed that JICA knew what they were looking for. Usually it's
just “he is my friend” and I want him to stand there.”
・ “NINJA has made our sales volume go up because of expansion”
・ “The team has grown due to NINJA”

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・ “Because of the NINJA program, our brand has been exposed and we have attracted interest from
potential investors and customers”

(2) Suggestions for improvement from participants

・ “I would have loved if the sessions were more practical, using exercises custom-designed for each
startup. Instead, it was more of a mini-master class.”
・ “During the Due Diligence process, we had some people come who were VERY knowledgeable,
we wanted more time with them. So, the anchor should have involved those people as necessary to
coach us.”
・ “We could have had a much better program if we weren’t bundled together. Our company needed
more customization. They were teaching us in some areas that we know are already very strong.”
・ “The businesses were very varied in stage and sector, and the program did not really address the
specific needs of each business.”

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 An Analysis of Uganda's Efforts, Current Status, and
Challenges toward Industrial DX

The Ugandan Ministry of ICT has launched a national policy and strategic framework, Digital Vision,
which aims to review, consolidate and refine existing ICT strategies, policies and plans, and provide a
unified direction for ICT development and implementation of ICT projects. The Digital Vision is a set
of measures aimed at consolidating Uganda's Digital Vision by providing a 1unified direction for ICT
development and implementation of ICT projects.
The main objective of the Vision is to improve Uganda's ICT International Index in order to coordinate
ICT investments in various sectors and attract investors. The ministry has set milestones to ensure that
the country benefits from investments in ICT.
The Vision also aims to achieve the goals of empowering citizens, diverse human resources,
sustainable development, economic development, and poverty eradication through digital innovation
combined with initiatives in various fields. It also aims to provide a variety of government and private
sector services electronically in various fields such as education, health, agriculture, social security,
banking, justice, and telecommunications.

(1) Overview of Current Status on DX across Industries in Uganda

In order to get an overall picture of the current state of DX in Uganda, we interviewed the Private
Sector Foundation Uganda (PSFU), the Uganda Investment Authority (UIA), and the Alliance for Trade
in Information Technology and Services (ITIS), which have information on many industrial sectors in
Uganda. PSFU is Uganda's chamber of commerce and industry, and since its establishment in 19952006,
many companies, ranging from small and medium enterprises (SMEs) to large enterprises in all sectors,
have registered with it. UIA is an organization that attracts investment and understands the
characteristics and problems of each sector in Uganda; ITIS is a trade and industry support organization
made up of companies that want to export services to the world and understands the challenges of
Ugandan industry compared to global standards. According to these organizations, the level of technical,
financial, and human resources is low in Uganda, and there are very few examples of companies in any
sector that are DX.
In addition to companies, the government is also trying to manage DX from various angles, but has
not yet reached the point where it can be done. For example, in the case of the agricultural sector, the
government is trying to secure farmer data using the Cooperative, but the Cooperative does not have
enough data to begin with, and it is difficult from the perspective of resources to implement a project to
digitize farmer data. However, the Cooperative does not have enough data to begin with, and
implementing a project to digitize farmers' data would be difficult from a resource perspective.

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(2) Identification of Sectors to be Surveyed
In order to conduct the survey, it is not practical to collect and analyze information on DX in all
sectors because of the wide range of industrial sectors covered. According to the interviews with the
PSFU and UIA, agriculture, health care, tourism, and education are important sectors for both
organizations, but the agriculture sector is particularly important. According to the interviews with PSFU
and UIA, agriculture, health care, tourism, and education are important sectors, but the agriculture sector
is particularly important because a large 8percentage of Ugandans are involved in the agriculture sector
and its impact is significant.
The importance of the agricultural sector is also evident in the desk study. As shown in the chart below,
the agriculture sector contributes about 22% of the total GDP as of 20192006, mostly due to crop
cultivation activities. On the other hand, although the industry and service sectors account for about
27% and 43% of GDP, respectively, the industry sector includes various sectors such as manufacturing,
mining, electricity and water, and construction. In the service sector, there is a wide range of sectors
including education, health care, tourism, real estate, transportation, and professional services such as
accounting and legal services. Therefore, the impact of the agricultural sector on agriculture is
particularly large.

Figure 9-1 Sectoral Share of GDP

Source: Uganda Bureau of Statistics, “Annual Gross Domestic Product Tables June 2020-21”

Furthermore, through interviews with JICA, it was decided that the agricultural sector would be the
subject of this DX survey from the perspective of affinity and complementarity with other JICA projects
in the past.
Even if farmers produce agricultural products, it is assumed that there are issues in the distribution

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stage until the products are delivered to consumers, and also in the processing process using the
agricultural products as raw materials. Therefore, this study will not only focus on the production
process of farmers, but will also analyze the food value chain (hereinafter referred to as FVC) in a
broader sense, including the processing of agricultural products as raw materials, the distribution of
agricultural products and processed foods, and the sales and consumption of these products.

(3) Definition of the Value Chain in the Agricultural Sector

As a framework for proceeding with the investigation of the status and issues of DX in Uganda's
FVC, we first defined each value chain. Specifically, each value chain was categorized as follows
through desk research of reports on similar projects in the past.

1. production process: the management process on the farm from pre-cultivation to cultivation,
harvesting, and post-cultivation sales
2. processing process: the process from the purchase of raw materials at a factory to the production
and sale of finished products.
3. distribution process: the process of transporting and storing finished products by wholesalers and
retailers.
4. sales and consumption process: the process of selling finished products to final consumers by
retailers, restaurants, etc.

(4) Definition of DX in this survey

According to the Ministry of Economy, Trade and Industry (METI) definition, DX means "the
transformation of products, services, and business models based on the needs of customers and society,
using data and digital technology to respond to the rapid changes in the business environment, as well
as the transformation of the business itself, the organization, processes, and corporate culture and climate
to establish a competitive advantage. This is defined as In Uganda, however, this is not the case.
However, in Uganda, there are still very few high-level DX companies that can establish such a
competitive advantage. On the other hand, in order to achieve the above DX, it is also important to
simply improve the efficiency of existing business processes, such as by redesigning and streamlining
existing operations and creating systems to record information correctly. In order to achieve this goal, it
is important to simply improve the efficiency of existing business processes. Therefore, in addition to
the Ministry of Economy, Trade and Industry's definition of DX, this survey will also include IT for
improving the efficiency, redesigning, and reducing the cost of existing business processes as part of
DX, as it is considered necessary for promoting the transformation of products, services, and business
models.

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 In order to prevent the introduction of DX from becoming an end in itself, we believe it is important
to understand what social issues remain unresolved in Uganda and to consider which social issues DX
should be introduced to solve.
Therefore, we categorized and analyzed the issues in each value chain in FVC from two aspects: (1)
the small processes in each value chain and (2) the characteristics of each issue.

(1) Small processes in each value chain

In each existing value chain, the work processes were classified as follows.
1. Production process
a. Pre-cultivation: The process of selecting crops, developing a cultivation plan, and acquiring land.
b. Cultivation: The process of cultivation, including planting, purchase of seedlings, fertilizers,
pesticides, etc., and installation of equipment.
c. Harvesting: The process of harvesting agricultural products.
d. Post-harvest: storage of produce and marketing processes.
2. Machining process
a. Manufacturing planning: the process of creating production quantities, funding, and personnel
plans to produce a product.
b. Raw material procurement: The process of procuring raw materials and other materials necessary
for the production of products.
c. Processing and packaging: The process of actual processing and packaging of the finished product.
d. Shipping: The process of selling and shipping finished products.
3. Distribution process
a. Procurement: The process of sourcing products from farmers and processors.
b. Domestic transportation: The process of transporting finished products by truck or other means.
c. Collection/Inventory Management/Shipping: The process of collecting and shipping finished
products and managing inventory.
d. Sales: The process of selling, etc., to end consumers.
The retail industry is not included in the distribution process in this study, but is included in the sales
and consumption process.
4. Sales and consumption process
a. Procurement: The process of procuring finished goods for sale.
b. Sales: The process of selling by retailers and e-commerce.
c. Purchasing: The process of purchasing by consumers.
c. Consumption: The process of consumption by consumers.

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(2) Characteristics of Issues
Then, each issue was categorized into different sizes8based on its characteristics.
1. Lack of know-how and knowledge
2. Lack of funds
3. Lack of human resources
4. Issues related to agricultural products and distribution markets
5. Issues related to raw materials and materials
6. Issues related to machinery and equipment
7. Underdeveloped infrastructure
8. Other

The following table summarizes the issues by taking into account (1) the processes in each value
chain and (2) the characteristics of the issues described above.

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 Figure 9-2 Issues in each value chain in FVC
Source: Compiled by the research team

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 For example, in the pre-cultivation stage of production in farms, farmers are unable to try new crops
or select profitable crops due to lack of know-how and knowledge. Other issues include the inability to
purchase pesticides and fertilizers due to lack of funds, and difficulties in accessing markets.
It is assumed that these social issues will be further subdivided according to each crop and area, but
in this survey, we first aim to get a general overview and only organize the general issues.

(1) Organize examples of DX services and the social issues that can be solved by each DX
service
To identify examples of DX initiatives in FVC, we categorized them by technology and service
content through interviews with experts and desk research.
1. production process
a. Production support
i. Field and operation data management
By managing records of fields and farm work, it will be possible to view past records, share
information among workers, manage progress, and create farm work plans, which will help
improve productivity and reduce unnecessary labor costs.
ii. Environmental data management
By visualizing environmental data such as temperature, soil temperature, water temperature,
humidity, and CO2 concentration, as well as the growing conditions, it is possible to manage
farms without being influenced by experience or intuition.
iii. Biometric data management
Real-time measurements of photosynthesis and transpiration, and infographics of plant
biological information are used to visualize growth and optimize final harvest production.
iv. Sales of materials and agricultural equipment
By selling seeds, fertilizers, farm tools, and farm machinery necessary for farming through
EC, many types of farm materials and equipment can be easily obtained.
v. Sharing of agricultural machinery and equipment
By sharing farm equipment, farmers who were financially unable to access farm equipment
will be able to use it.
vi. Automation
By automating part of the farming process, it will be possible to save a great deal of labor,
increase productivity, expand the scale of farming, free farmers from dangerous work, and
allow less experienced workers to enter the field.
vii. Know-how/information support

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 Through farmer community sites that provide and share various data and knowledge about
agriculture, as well as exchange information, it is possible to help improve the productivity of
farmers who lack know-how and knowledge about agriculture.
viii. Use of drones
By using this system, it will be possible to improve the efficiency of pesticide and fertilizer
spraying operations, carry out operations that are difficult to use heavy machinery for, such as
in narrow spaces, acquire and manage data using drone cameras, and reduce labor costs.
ix. Satellite data usage
The use of satellite data makes it possible to acquire data over a wide area, to continue
observing the same location, to perform long-term observations in real time, and to acquire
and manage environmental data.

b. Management support
i. Financial support
By using agricultural financing services, they can purchase necessary materials and farm
equipment, expand farmland, and use other farm management services.
ii. Business Accounting Management
Purchasing management, human resource management, sales planning, and accounting
software can be used to improve the management of agriculture.
iii. Recruitment Support
It will be possible to solve the shortage of human resources by recruiting agricultural
personnel, increasing the number of people interested in agriculture through agricultural
experience, and mediating spot recruitment only during peak seasons.

c. Sales support
i. Production Logistics
By providing farmers who do not know how to access markets, have weak bargaining power,
or limited distribution channels to buy at lower prices with a direct link to consumers and an
information platform on businesses involved in the distribution of agricultural products, it is
possible to improve farmers' access to markets and profitability. This will enable farmers to
access markets and improve their profitability.

d. Rental farms
i. Rental Farm
By matching idle land, etc., it will be possible to expect combined income such as rental
fees from lease contracts, experience and entrance fees from the operation of experience farms,
and accommodation facilities.

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2. machining process
a. Sales and Marketing.
Digital marketing to understand customer preferences and strengthen brand power will enable
the planning and development of products that meet the needs of consumers.

b. Business Management
By digitizing the business processes of managing invoices and contracts, purchasing, human
resources, sales, and other administration, it will be possible to work more efficiently.

c. Factory management
Productivity can be improved by equipment management and maintenance work systems using
AI and IoT, automation by machines, and production management systems.

d. SCM & Demand Forecasting

Further autonomy and optimization of SCM (procurement, production, logistics, and sales) will
enable more precise inventory and production management.

3. distribution process
a. Improve distribution
By eliminating intermediary distribution and improving the operational efficiency of
distribution sites, it will be possible to streamline the existing distribution volume and benefit
consumers and producers.

b. Delivery and Receiving Services

Door-to-door delivery of meals and meals from restaurants will make it possible to receive
meals and meals from restaurants without having to go directly to the restaurant. Also, by using a
reservation service, customers can receive their meals without having to wait.

c. Food Losses
It is possible to reduce the distribution loss of foodstuffs by using technologies that prevent
foodstuffs from deteriorating during distribution and storage, and by selling near-expiry date or
substandard foodstuffs at a discount.

d. Drone Transport
Distribution by drones will enable efficient distribution

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4. sales and consumption process
a. Attracting customers
i. Booking media
By using the reservation media, it is possible to increase the reservation rate of the store,
improve the awareness of the store, and collect and analyze customer data.
ii. Gourmet Media
By using gourmet media, it is possible to increase restaurant awareness, promote the
restaurant, and collect and analyze customer data.
iii. Subscriptions
By providing food subscription services, the company will be able to record stable sales,
acquire and analyze user data, and improve the accuracy of demand forecasts.

b. Store management
i. Contactless and non-face-to-face (POS, payment systems, etc.)
By using systems such as mobile ordering, which allows customers to order and pay with
their smartphones, and self-checkout systems installed in stores, it will be possible to reduce
labor costs, analyze customer data, and manage sales efficiently.
ii. Purchase Management
It is possible to reduce man-hours by using applications that make it easy to manage ordering
with a smartphone or other devices, or by using services that develop food ingredients on
behalf of customers.
iii. Recruitment Support
By using a recruiting service that specializes in restaurants and other food service
establishments, it is possible to find personnel that better match your requirements.

c. Cooking
i. Smart Kitchen
By connecting various smart home appliances to the IoT, it will be possible to use, for
example, a server that measures and outputs the necessary amount of seasonings according to
a recipe, or a smart refrigerator that uses a camera in the refrigerator to determine the missing
ingredients and order them.
ii. Robotics.
By using robots to cook and serve food, service can be provided without contact during the
corona, thus reducing labor costs.

d. Store type
i. Unstaffed stores

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 By operating unmanned stores that allow self-checkout or automatic payment by simply
taking items out of the store, it is possible to reduce labor costs, analyze customer behavior
data, improve customer satisfaction, and deter shoplifting and robbery crimes.
iii. Cloud Kitchen
Cloud kitchens in this context refer mainly to facilities designed to prepare food for delivery,
such as ghost restaurants. By using cloud kitchens, it is possible to reduce the initial cost of
opening a restaurant, labor costs, and rent, as well as share know-how with the community.
iv. Ghost Restaurant
A ghost restaurant is a restaurant specializing in delivery that has neither seating nor a
reception desk, eliminating the need for any facilities other than the kitchen and allowing it to
be operated by only the cooking staff.

The table in the next page summarizes the DX services described above. The social issues that each
DX service is expected to solve are shown in red.

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 Figure 9-3 List of DX services at FVC
Source: Compiled by the research team

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(2) Chaos map of DX services in Japanese companies
Based on the categorization of each DX service shown above, this section presents a chaos map of DX companies in Japan.

Figure 9-4 Chaos Map of DX Service Providers of FVCs in Japan

Source: Compiled by the research team

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(3) Chaos map of DX services in Ugandan companies
This is followed by a chaos map of Ugandan companies on DX companies.

Figure 9-5 Chaos Map of DX Service Providers of FVCs in Uganda

Source: Compiled by the research team

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 In Uganda, for example, EzyAgric and M-Omulimisa are two examples of companies that provide
comprehensive services to producers in the production process, using agents to collect data on farmers'
crops, land size, yields, etc. They also provide agricultural technical guidance services, financial services,
and support for market access. They also provide agricultural technical guidance, financial services, and
support for market access. Other companies, such as famunera and Smart farming, connect farmers with
suppliers of agricultural materials through e-commerce.
Although there are still few examples of DX in other value chains, many companies such as Jumia
and Safe Boda have already entered the delivery and food receiving services in the distribution process.

(4) Identify underserved areas of DX services in Uganda and their needs

By comparing the above chaos maps for DX services in Japan and Uganda, we will identify what DX
service areas are under-provided in Uganda.
In the chart below, areas of Uganda that are under-served by DX services are shown in blue.

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 Figure 9-6 Underserved areas of DX services in Uganda
Source: Compiled by the research team

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 Although the above chart shows areas where DX services are not yet available, the economic level
and culture of Japan and Uganda are different, and the fact that a DX service is not yet available does
not mean that it should be immediately available in Uganda. For this reason, we conducted interviews
with local entrepreneurs and government officials, including the Ministry of Agriculture and the
Investment Authority, about the needs of each DX service in Uganda, based on the above diagram of
areas where DX services are not yet provided.
As a result of the interviews, we were told that most of the small-scale farmers in the production
process are unable to understand the benefits arising from each of the DX services in the first place, and
therefore the needs are almost non-existent there. Therefore, we think it is necessary to first educate
them on how convenient and important these services are. In fact, when the companies we interviewed
were planning to provide farm management services using drone technology in the future, they focused
on encouraging farmers to use the services for free first to promote their understanding of DX services.
Whether or not farmers feel the need for such services, from the standpoint of companies that provide
agricultural support services, the DX services summarized in the previous section should first be basic
services that allow farmers to earn a minimum profit, rather than services that require high technology
using drones and environmental data. Specifically, they suggested that services that provide know-how
and information, sales of materials and farming equipment, financial support, support for distribution of
products, and sharing of farming equipment are important. It is important to provide basic services such
as these in the first stage, and in the medium to long term, to look at services such as improving
productivity, expanding the scale of production, and even producing high value-added agricultural
products. Another opinion was that renting or leasing farms is also important, as many farmers do not
use their land effectively, and that services related to comprehensive business management support are
also important, as farmers lack a business perspective.
On the other hand, it was pointed out that even if there is a need for DX services, or if small-scale
farmers understand the need for such services, most small-scale farmers would find it difficult to pay
for such services. Therefore, it is necessary to provide services directly to large-scale farmers or
companies, or indirectly to small-scale farmers through companies. Furthermore, since the needs are not
necessarily limited to farmers and companies but also to the government, it is important to provide
services to the government first in order to obtain immediate funding and penetrate the market. For
example, the government is currently emphasizing the collection of data on farmers and their farm
activities, and in this regard, services such as the management of farmers' field and operation data and
environmental data may have certain needs for the government. In addition, farmers have different
interests and needs for different crops (e.g., banana issues are different from coffee issues), so the
government is focusing on strengthening groupings by crop and area to share fragmented information
more efficiently to all farmers.
In the chart below, the service areas that are expected to be needed in the short term in Uganda are
shown in blue.

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 Figure 9-7 Services that are expected to have needs in the short term
Source: Compiled by the research team

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(5) Organizing Unfinished Business in Uganda
In the previous section, we identified what DX service areas are currently under-provisioned in
Uganda. At the same time, we have already described the social issues that each DX service seeks to
solve, and by combining these findings, we have predicted what social issues remain unaddressed in
Uganda.
In the chart below, the issues estimated to be unaddressed in Uganda are shown in red.

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 Figure 9-8 Summary of unaddressed social issues in Uganda
Source: Compiled by the research team

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 For example, in the agricultural production process, it is thought that there are still issues such as the
unknown creditworthiness of small-scale farmers and the lack of utilization of idle land. Note that the
areas not in red do not necessarily mean that the social issues have been resolved.
When promoting DX in the future, we believe it will be useful to develop DX services with reference
to the social issues shown above.
As mentioned earlier, the social issues mentioned above are general ones, but we were also able to
hear opinions on currently unresolved social issues focused on rice, which are described below for
reference. First of all, the kind of land that can be used to grow rice is wetland, and the price of such
land is higher than that of normal land. In addition, there are no quality rice seeds available in Uganda,
and there is a high degree of difficulty regarding the importation of such high quality seeds. Other
problems that were pointed out included the fact that although agricultural extension workers exist, they
are few in number compared to the number of rice farmers and are not able to fully respond to the needs
of the farmers.

(6) Organize the level of difficulty of the ICT technical skills required by each DX service
The next step is to determine which services will require what level of technological capability to
develop DX services in Uganda, and to use this information as a reference for future agricultural DX
growth scenarios. To this end, through interviews with experts, we have compiled a list of the level of
ICT technology required for each DX service to be developed in Uganda. This will enable us to obtain
guidelines on which service areas should be introduced first when actually introducing DX services in
Uganda in the future, based on the ICT technology capability in Uganda.
In addition, the evaluation of the relevant ICT technological capabilities is based on the following
perspectives.

1. User's point of view

a. ICT Literacy
Do users have the skills to use and master information technology, including communications,
networks, and security?
b. Business Management Capability
Even if users have access to the information, do they have the ability to utilize it properly?

2. Supplier's perspective
a. Statistical knowledge
Do you have the statistical knowledge to use data?
b. Coding ability
Do you have the coding skills to develop applications and other products?

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 c. Hardware manufacturing/maintenance capabilities
Does the company have the capability to develop and maintain its own IT equipment?

Based on the above, the ICT technical capabilities required for each DX service are organized as
follows. The order in which the highest level of technological capability is required is shown in red,
dark pink, light pink, and white.

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 Figure 9-9 Areas where high ICT skills are required
Source: Compiled by the research team

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 For example, in the case of material and agricultural equipment sales, the supplier only needs to create
an e-commerce site for the material and agricultural equipment, and the user only needs to use the e-
commerce site, so no special IT technology is considered necessary. On the other hand, in the case of
environmental data management, the sharer needs to develop a sensor to measure CO2 concentration
and water temperature and a mechanism to collect the information, so some IT skills are required. On
the other hand, users need to have the ability to make decisions using the collected information and the
ability to handle a minimum number of sensors and applications, so ICT technical skills are considered
to be high to a certain extent. In the case of automation services, the supplier needs to have the ability
to develop and maintain robots and automatic management systems, and the user needs to have the
management ability and ICT literacy to handle them, so it is considered that a high level of ICT
technological capability is required.

(1) Service areas that could be targeted for future projects

The research described above has revealed areas where DX services are not yet available in Uganda,
areas where there may be a need in the short term in Uganda, and the technical capabilities required for
these service areas. Based on these findings, we will make proposals for DX service areas that should
be provided in Uganda in the future. The following is an analysis of the current situation, interviews
with experts, and proposals for short-term, medium-term, and long-term measures.

(2) Current Status Analysis

Although there are a number of companies that provide support for know-how and information, sales
of materials and agricultural equipment, financial support, and support for the distribution of products,
which are considered basic elements for agricultural management, there are still issues with the number
and quality of service users, as shown below.

Challenges in the number of users

• There were a few local companies that were already providing know-how, information, and support
for the distribution of their products. However, their number is not yet sufficient to cover all
Ugandan farmers.
• Although there are some companies that provide financial services, there are still many small
farmers who suffer from lack of funds and cannot afford to buy materials and agricultural
equipment.
• The Ugandan government would like to create a system to collect and share information from many
farmers, but it has not yet been fully realized.

224
Challenges in the quality of services provided
• The main way to share know-how and information is through telephone and face-to-face advice,
but there is still a lack of formalized content such as organized information websites, applications,
and video distribution services.
• Since there is little record of the farm's activities, it is possible that more detailed advice based on
the situation has not been provided.
• Objective data has not been collected yet, so the know-how and information is left to the knowledge
of individual agricultural extension agents.

From the above issues, it is considered necessary to increase the number of users and improve the
quality of services.

(3) Interviews for experts

Based on the information obtained so far, we conducted an interview with Makino Harabo Co., Ltd.
which is already implementing smart agriculture in Japan. They agreed that the collection of data and
its analysis is an important factor in improving the quality of farm management. In particular, the
accumulation of environmental data will be useful in the medium to long term, as it will enable us to
save on pesticide costs by analyzing crop and land conditions and applying pesticides with pinpoint
accuracy. By analyzing environmental data and past field and work data, we can understand cause-
and-effect relationships that were previously unrecognized, and thus expect to improve productivity
and reduce labor costs. Furthermore, by analyzing environmental data and managing the nutrient
status of the soil, it will be possible to use the soil for the long term as well.
However, it takes time to collect and analyze the data. Therefore, he advised us that it is important
to start collecting data simultaneously from a short-term perspective. He also said that while utilizing
the results of data analysis is a mid- to long-term goal, useful information for agricultural management
can be obtained even in the short-term data collection stage. For example, environmental data can be
used to visualize the safety of crops for export and help guarantee their quality. Also, although
advanced advice through analysis is a medium-term output, even in the short term, better advice can
be given to farmers than in the absence of data.
Based on the results of these interviews, we believe that it is important to focus on increasing the
number of farmers using the service in the short term so that more farmers can benefit from it, while
simultaneously collecting field and operation data and environmental data in the short term with a
view to improving productivity in the medium term. In addition, it is important to collect field,
operation, and environmental data in the short term with a view to improving productivity in the
medium term.
In the medium term, the goal is to improve the quality of services and increase productivity by

225
analyzing the collected field/work data and environmental data. These data can also be diverted to
know-how and information support services, which can be expected to develop higher quality know-
how and information support services.
In the long term, the goal is to achieve further productivity improvements and scaling of farms
using the latest technologies such as drones and automation techniques, as well as adding value to the
crops.
In line with Uganda's current ICT technology, we will start with areas that do not require ICT
technology, such as know-how and information support systems, in the short term, and gradually move
on to areas that require analysis of field and work data and environmental data, automation technology,
and drone technology in the medium and long term. In this way, we will be able to proceed
simultaneously. By proceeding in this order, it will be possible to simultaneously develop ICT human
resources and companies in Uganda, and to improve the ICT literacy and management skills of
farmers without difficulty.

(4) Short-term measures

General direction
In the short term, the goal is to make more Ugandan farmers aware of farming as a business and to
enable them to make a profit. However, at present, the services provided to farmers are often provided
through relative methods such as telephone calls and direct dialogue, and there are doubts about the
speed at which the number of users will increase. Therefore, it is necessary to take measures to
increase the number of users at an accelerated rate by promoting the DX of know-how and information
support services.
On the other hand, experiments and demonstrations of data collection will be conducted in parallel
with the analysis of field and operation data and environmental data as a medium-term perspective. It
is assumed that secondary benefits can be obtained even in the data collection stage, and it is thought
that having people understand these benefits may lead to an increase in the number of users.

Know-how and information support

It will be necessary to make it possible for existing disseminators to give advice efficiently, or to
create content that will have the same effect without disseminators. In particular, the formalization of
current knowledge is important, and if it can all be stored as data, it will be possible to develop more
effective DX services. For example, the following content could be considered.
・ Approaches from the user side, such as requesting advice from farmers, could include posting of
instructional contents using videos and photos, a system for simple advice via automated voice, and
the establishment of a system that allows users to learn the know-how of experienced farmers in a
short period of time.
・ As for approaches such as information transmission from the provider side, contents that

226
 automatically transmit useful information can be considered. For example, a system that predicts the
timing of pest outbreaks for each crop or region, and sends out information such as the timing of
pesticide use via SMS or e-mail.

Field and operation data support

Even in the short term, the field and operation data support will be useful for the following know-
how and information support services, access to financial services, and access to markets.

・ By acquiring field and work data, it is expected that it will be possible to understand the current
situation and provide more prompt and accurate advice on farm management.
・ In order to receive financial services, farmers need to improve their creditworthiness. Here, the
collection of field and operation data will enable farmers to view their activity history, including
their size, sales and profits, which will enable them to measure their creditworthiness and increase
the number of farmers who can receive financial services.
・ By acquiring field and operation data, it will be possible to determine which farmers are growing
which crops and in which regions, and by linking with know-how and information support services,
it will be possible to distribute market information on those crops and regions to the appropriate
farmers in a timely manner.

Environmental data support

By collecting environmental data such as temperature and CO2 through sensing and other
technologies, we can expect the following effects.
・ By acquiring environmental data, it is expected that it will be possible to understand the status of
farms and provide more prompt and accurate advice on farm management.
・ The collection of environmental data is expected to be useful in evaluating the safety and quality of
the products for export.

Agricultural machinery sharing service

In order to obtain financial support, creditworthiness needs to be improved, which takes time.
Therefore, it is necessary to develop a sharing service that allows farmers without funds to use
agricultural equipment. The sharing service platform is also expected to be used for the use of drones
and automated robots, as indicated in the long-term strategy described below.

(5) Medium-term measures

General direction
In the medium term, the goal is to improve productivity and profitability. Therefore, it will be
important to analyze the field, work, and environmental data that have been collected from a short-

227
term perspective, and to conduct farm management based on more precise and objective data.
Furthermore, according to the Uganda Bureau of Statistics, food losses in Uganda are 30-50%.
Solving this problem at the distribution stage can greatly increase the profitability of farmers.

Field and operation data, environmental data support

By analyzing and analyzing historical field and operational data and environmental data for crops
and regions in Uganda, the following benefits can be expected.
・ It will enable more optimal farm management based on objective data such as temperature, humidity,
and water level, which is expected to increase the yield.
・ This will enable timely and appropriate monitoring remotely and improve work efficiency.
・ Real-time notifications of environmental anomalies can be made by sensors, and losses can be
expected to be avoided.
・ This will make it possible to know exactly which land needs what amount of pesticides, and thus
save on pesticide costs.
・ The application of fertilizers through environmental data analysis will help manage soil nutrients
and ensure long-term land use.
・ Image analysis can detect signs of pests and diseases at an early stage and provide appropriate
countermeasures.

Food loss
・ By providing advice on how to preserve harvested crops, establishing a cold chain at the distribution
stage, and organizing traffic in distribution channels, it is possible to reduce food loss.

(6) Long-term measures

The general direction
In the long term, we aim to manage farms with a high level of work efficiency that cannot be
achieved by human labor, and to scale up farm activities through the utilization of land.
We also aim to increase the added value of our crops in order to sell them at higher prices.

Use of Drones
・ Drones can be used to efficiently spray pesticides and check the health of crops, and are expected to
be more productive than manual labor.
・ Using higher-dimensional photographic technology and AI analysis technology, it will be possible
to exterminate pests with pinpoint accuracy and produce products with fewer pesticides, thereby
adding value as health food.

228
Automation
・ By automatically adjusting the water level, etc., we can not only improve the efficiency of work, but
also expect to reduce the hard labor work with weeding robots, etc.

Rental Farm
・ There is a surplus of land in Uganda, but in order to scale up plantation activities, it is sometimes
necessary to have a larger area of land. Therefore, the matching of land for leasing is expected to
promote the utilization of land.

Produce distribution support

・ In the future, there is a possibility of marketing at the farm level in Uganda using the D to C (Direct
to Customer) model. It will be possible to increase the transparency of the safety and security of the
crops handled by each farmer, and to add value by visualizing the story of how the crops are
produced.

A graphical representation of the above contents is shown below. Short-term measures are shown in
dark blue, medium-term measures in blue, and long-term measures in light blue.

229
 Figure 9-10 Examples of service areas that could be targeted by future projects
Source: Compiled by the research team

230
 Figure 9-11 Growth scenarios for agricultural DX
Source: Compiled by the research team

231
(1) Framework for DX issues
In the above, we have outlined future growth scenarios for agricultural DX and examples of services
that should be considered, but as we move forward with these projects, issues related to DX
implementation will arise. In this section, we will summarize what kind of DX issues exist and what
solutions are available for these issues. The framework of the issues involved in implementing DX is
organized as follows.

a. User's perspective
The lack of IT literacy among users and the lack of budget to purchase DX services are organized
in terms of people, goods, money, and technology.

b. Supplier's point of view

It is organized in terms of people, goods, money, and technology, including the lack of ICT human
resources needed for development and the lack of facilities for development.

c. Social environment perspective

It is organized in terms of infrastructure and regulations, including the lack of ICT infrastructure
such as the Internet environment and the absence of laws and regulations.

(2) Organizing DX issues

Based on the above framework, we have organized the DX issues as follows.

a. User's perspective
The users here are not only farmers, but also agricultural extension workers who provide guidance to
farmers and companies that run agricultural businesses.

People
・ Lack of ICT literacy among users and inability to use smartphones and applications
・ The user does not have a smartphone or feature phone.
・ Farmers have poor management skills, and even if they have acquired data, they cannot understand
it and use the services.
・ The service exists, but the users are not aware of it.
・ You don't have a strategy or vision for why you should use a DX service, you just use it.

232
Funds
・ Unable to secure a budget for using DX services

Products and Technology

・ Existing systems are becoming increasingly legacy and cannot be updated or migrated to new
technologies.

Other
・ Existing labor costs are low, so there is no need to use DX services.

In addition, online interviews were conducted with local companies, and the items that were
considered particularly important by local companies were that users lack ICT literacy and are unable
to use smartphones and applications, and that farmers lack management skills and are unable to
understand the data obtained and use the services. It was also mentioned that farmers lack management
skills, and even if they acquire data, they cannot understand it and use the services.

b. Supplier's perspective
Suppliers here include the companies and engineers that develop the services themselves, as well as
the companies that provide the services.

People
・ Unable to secure the necessary ICT human resources for development.
 ICT personnel with the statistical knowledge required for development
 ICT personnel with the coding skills necessary for development
 ICT personnel with the ability to manufacture and maintain the hardware required for
development
・ Lack of development experience of ICT personnel prevents them from developing
・ Suppliers have no knowledge or ideas about what kind of DX services to provide in the first place

Funds
・ Unable to secure a development budget for DX services

Products and Technology

・ No in-house facilities for developing DX services

In addition, online interviews were conducted with local companies, and the following items were
identified as being particularly important by local companies: the inability to secure ICT personnel with

233
the statistical knowledge necessary for development, the inability to develop due to the lack of
development experience of ICT personnel, the inability to secure a budget for the development of DX
services, and the lack of DX services, the inability to secure a budget for the development of DX services,
and the lack of in-house facilities necessary for the development of DX services.

c. Social environment perspective

The following is a summary of the environment surrounding agricultural DX services, including the
Internet environment and laws and regulations necessary to provide and use agricultural DX services.

Infrastructure
・ Lack of necessary ICT infrastructure.
 Internet is weak or unreachable in some areas.
 Some areas have weak or no reception.
 Unreliable or unelectrified electricity in some areas
 Unable to procure hardware with sufficient specifications

Regulation
・ Lack of necessary laws and regulations for launching new services, etc.
・ Inability to launch new services due to existing legal impediments
・ No tax incentives or investment incentives

In addition, online interviews were conducted with local companies, and the following items were
identified as particularly important to local companies: weak or unreachable Internet in some areas,
inability to procure hardware with sufficient specifications, and lack of tax incentives and investment
promotion measures.

234
 Examination of measures for promoting ICT industry in
Uganda

The issues about the development of the Ugandan ICT industry, focusing on "the inability of Ugandan
ICT companies/engineers to receive software development contract works from foreign companies
(especially Japanese companies)", are summarized in Chapter 2-7.
Problem tree was made, as shown in the following page, based on the findings of the pilot project,
and by reassigning the lack of development of the ICT industry in Uganda as the central issue and the
countermeasures for the issue.
For brainstorming, the proposed measures are included here as ideas, without distinguishing between
policies and measures expected from the Ugandan government and support measures from donor
agencies such as JICA.

235
 Figure 10-1 Issues related to the development of the ICT industry in Uganda Overall diagram
Source: Compiled by the research team

236
 Figure 10-2 Problem tree of issues related to the development of Uganda's ICT industry (after "few orders from overseas")
Source: Compiled by the research team

237
 Figure 10-3 Problem tree of ICT industry development issues in Uganda (after "Low quality of engineers")
Source: Compiled by the research team

238
 Figure 10-4 Problem tree of ICT industry development issues in Uganda (after "ICT infrastructure is not ready")
Source: Compiled by the research team

239
 The blue and bold lines indicate
major issues that were identified
There is no opportunity to have during the implementation (including
business matchings with overseas preparation) of the pilot project.
companies.41% Shading indicates issues that were
not originally envisioned but have
become apparent through the pilot
project.

Issues of Ugandan-side Issues of Japanese side

There are few companies There are few Ugandan Not many Few foreign companies
ICT companies are too matching
that are actively pursuing companies that consider (especially Japanese
offshore orders from small to get offshore Japanese ICT companies events have companies) are
overseas. development business as business partners. been held. interested in Ugandan
(don't know any Japanese ICT companies.
from overseas.50％ ICT companies.)

There are no Ugandan ICT Ugandan ICT

bridge companies do
engineers who not have the companies do not have See the Organize
can use other know‐how of experience in dealing matching
languages previous tree events Japanese ICT companies Japanese ICT
contracts with with foreign companies Introduction of Japanese ICT Japanese ICT Few opportunities
(especially overseas and incur large costs Japanese companies do not have bridge companies do not companies do not companies do to learn about
Japanese). companies. Creating brochure engineers who can have the know-how have experience not have the African
for the first transaction. manage contractors in to contract with in dealing with know-how of companies
Support project English. foreign companies. foreign companies oversea
for matching by and incur large project
Support for Support project costs for the first management.
for matching by JICA
Japanese transaction.
language JICA
Utilization of Support
education Japan
Overseas project for
Implementation of pilot Cooperation matching
Support for
interns in projects similar to the pilot Volunteers
(computer
by JICA
Japanese projects implemented in this Creating a list
companies technology,
survey etc.) alumni of ICT
Implementation of pilot projects similar to the pilot projects companies in
implemented in this survey Uganda
Cooperation →Prepared in
with various cooperation
youth overseas Training of bridge engineers on the with NITA-U
programs and Japanese side (outside the scope of
study abroad this study's recommendations)
promotion Support for top sales
Horizontal development of Dive Into activities conducted by the
programs Code case study? Ugandan government for
Japanese companies

Figure 10-5 Problem tree of ICT industry development issues in Uganda (after "No matching opportunities")
Source: Compiled by the research team

240
 The most effective way to consider about the necessary support by JICA is to refer to the countries
that have successfully developed ICT industries by Japan’s support in the past. It is also advisable to use
a two-step approach: first, sort out what policies and measures will be needed, and then consider
necessary support by JICA.
In recent years, Vietnam has been in the spotlight of an offshore destination for Japan's ICT industry,
replacing China. In the 2000s and 2010s, Vietnam introduced a variety of measures and has been
achieving their growth. In August 1993, as part of its Doi Moi policy, the Government of Vietnamese
announced, "IT 2000," which included a plan to develop the field of information technology by the year
2000 and announced its goal of creating an "information society" that would improve productivity,
promote quality control, and enhance various services. Based on this plan, in February 1994, the
Government of Vietnamese requested the Government of Japan to provide technical corporation project
with the purpose of establishing the Vietnam Information Technology Institute (VITTI) at the Hanoi
University of Science, one of Vietnam's national universities, to contribute to the improvement of the
country's industry, science and technology research, and services by training and improving the quality
of information processing engineers44. This is when JICA's ICT-related support to Vietnam started.
Around the year 2000, Vietnam's software industry had a turnover of less than 100 million USD, and
the number of companies in the software industry was about 60, which is similar situation with that of
Uganda today. At that time, the Government of Vietnamese invested about 50 million to 70 million USD
to support human resources, marketing, and product development projects, and to train about 300
students, 500 experts, and executives at various levels (IT managers, teachers at universities and colleges,
researchers, and engineers working in the IT industry) by short-term internships, research, and study
tours related to IT in countries and regions annually where the IT industry was developing.
The ICT industry has developed rapidly, and the software industry had a turnover of 250 million USD
and there were already 400 enterprises in the software industry in 2005. Also, Government of
Vietnamese implemented the “Program on development of Vietnam's software industry to 2010 (Prime
Minister's Decision No. 51/2007/QD-TTg on Apr. 12, 2007)”. In accordance with the Program on
Development of Vietnam's Software Industry to 2010 (Prime Minister's Decision No. 51/2007/QD-TTg
on Apr. 12, 2007), promoting the development of legal environment, human resource development,
investment promotion, development of domestic and international ICT markets, support and
competitiveness of software enterprises, application and development of open source software, and
integration of internet and telecommunication infrastructure for the software industry. The Government
of Japan also implemented the "Higher Education Support Project (IT Sector)" for Vietnam around this
time, providing support such as dispatching Japanese language teachers, supporting study in Japan,
equipment maintenance, and consulting services.

44 https://www2.jica.go.jp/ja/evaluation/pdf/2005_0271041E0_4_s.pdf

241
 Figure 10-6 Vietnam's ICT Industry Development and Government Policies
Source: Compiled by the research team

242
 Figure 10-7 JICA's Support Measures for ICT Industry Development in Vietnam
Source: Compiled by the research team

243
 It is not only the export of the ICT industry that has driven the development of Vietnam's ICT industry.
The growth of domestic industry is also driving the development of it. According to Dang Thi Viet Duc
et al. (2020) 45, the export effect of Vietnam's ICT growth factors from 2007 to 2012 was 24.55%, while
household demand was 31.85% and government demand was 34.71%. Similarly, from 2012 to 2016,
the export effect was 19.75%, while household demand was 45.76% and government demand was 7.21%.
As for the growth of Vietnam's ICT industry, the effect of exports was about 1/4, especially from 2007
to 2012, and the growth due to domestic demand accounts for 60%. This will be helpful when
considering the future growth of Uganda's ICT industry.

Table 10-1 Sources of Growth of ICT Sectors (as a Percentage of Sectoral Output
Growth) 2007-2012
ICT ICT media and
Effects Sub-effects ICT services The economy
manufacturing content
Import
-42.64 -60.87 8.21 1.90
substitution
for final demand -24.28 -41.82 6.08 4.05
for intermediate
demand -18.36 -19.05 2.13 -2.15

Technological
change 1.06 135.56 1.49 -11.47

of ICT sectors 1.04 141.65 6.80 0.43

of non-ICT
0.02 -6.09 -5.31 -11.90
sectors
Final demand -0.85 30.84 65.75 32.31
Household
-0.48 39.65 31.85 21.93
demand
Government
0.05 -9.26 34.71 0.31
demand
Capital
-0.45 -1.51 -2.05 5.37
formation
Change of stock 0.03 1.96 1.24 4.70
Export effect 142.43 -5.53 24.55 77.26
Sectoral output
growth 100.00 100.00 100.00 100.00

Annual growth
19.24 6.30 6.71 8.11
rate

Source：Dang Thi Viet Duc et al. (2020) ”Sources of Output Growth of the ICT Sector in Vietnam”, Journal of Reviews on

Global Economics, 2020, 9, 308-320

45Dang Thi Viet Duc et al. (2020) ”Sources of Output Growth of the ICT Sector in Vietnam”, Journal of Reviews on Global
Economics, 2020, 9, 308-320

244
 Table 10-2 Sources of Growth of ICT Sectors (as a Percentage of Sectoral Output
Growth) 2012-2016
ICT ICT media and
Effects Sub effects ICT services The Economy
manufacturing content
Import
-61.52 6.34 3.08 2.49
substitution
for final demand -7.04 1.89 1.35 -1.18
for intermediate
demand -54.48 4.45 1.73 3.67

Technological
change -9.91 31.35 22.02 16.31

of ICT sectors -8.30 17.63 16.84 -0.02

of non-ICT
-1.61 13.72 5.18 16.33
sectors
Final demand -18.70 36.22 55.15 29.46
Household
-3.80 24.96 45.76 19.15
demand
Government
-0.50 8.47 7.21 1.50
demand
Capital formation -1.96 2.29 1.75 7.01
Change of stock -12.44 0.50 0.43 1.80
Export effect 190.13 26.09 19.75 51.74
Sectoral output
growth 100.00 100.00 100.00 100.00

Annual growth
13.83 16.72 12.01 13.53
rate
Source：Dang Thi Viet Duc et al. (2020) ”Sources of Output Growth of the ICT Sector in Vietnam”, Journal of Reviews on

Global Economics, 2020, 9, 308-320

Uganda's main industry is agriculture, which still accounts for more than 20% of GDP. Other services
have reached 30% in recent years which is the highest percentage. The manufacturing sector has
remained flat at less than 10%. Uganda is a landlocked country, and considering transportation costs and
other factors, it is unlikely that the manufacturing industry will grow in the future. The other services
industry, especially the software development industry with high added value is expected to continue to
grow. Therefore, the Ugandan government is also focusing on the growth of the software industry
through NDP III and other measures.
The followings are the differences between the population pyramids of Vietnam and Uganda. Given
that ICT skills are easier to acquire at younger ages, it is highly expected that Uganda will produce
excellent ICT engineers.

245
 Figure 10-8 Estimated population pyramid trends in Vietnam and Uganda
Source: PopulationPyramid.net (https://www.populationpyramid.net/) For detailed data sources, please refer to the relevant website.

246
 Furthermore, the wages of ICT engineers are still low.

Figure 10-9 Comparison of wages for software engineers in African countries

Source: Tunga's website (https://tunga.io/african-software-developers-best-countries-for-sourcing/)

According to an analysis by Tunga, a company which runs business of introducing African ICT
engineers to European companies, Uganda is classified as a "promising outsider" as a potential offshore
destination. With low wages and the existence of engineers with good coding skills, the Ugandan
government's plan to turn the ICT software industry into an export industry seems to be heading in the
right direction.

247
 Table 10-3 Tunga's assessment of potential offshore destinations (excerpt)
late blooming
Front Runner The Awakening Titan Promising outsider.
(flower, talent)
Mauritius Nigeria Ghana Ethiopia
South Africa Egypt Senegal Tanzania
Morocco Uganda Zimbabwe
Tunisia Rwanda Côte d'Ivoire
Kenya Cameroon Algeria
・ High number of ・ Both countries have huge ・ Ghana and Uganda have ・ The nickname is "Late
developers per 100million populations. large populations of Bloomer.
population. ・ As a result, there is a developers, good English ・ These countries certainly
・ Must be fluent in English very large pool of speakers, and moderate have a lot of potential.
(Mauritius, South Africa, talented human salary levels. ・ However, they have not
Kenya) or French resources. ・ Senegal & Cameroon yet been able to expand
(Morocco, Tunisia). ・ In Nigeria, English have relatively well- the scale of the project.
・ Relatively high salary proficiency is a positive developed ICT sectors,
levels, except in Tunisia. element. Salary levels in are fluent in French, and
・ Attractive technology both countries are still have moderate salary
business environment very modest. levels. However, the
・ The business business environment in
environment (for Cameroon is a major
technology) is far from concern.
ideal. However, it is ・ Rwanda is a small
improving rapidly. Also, country, but the business
the technology (hub) environment is very
scene is growing good. Salary level is
significantly in both moderate.
countries.
Source: Tunga's website (https://tunga.io/african-software-developers-best-countries-for-sourcing/)

The figure in the next page is the image of the ICT industry development including the considering
of the above contents. In the next section, the results of the study on the proposed measures for the
development of the ICT industry in Uganda and the proposed support measures by JICA in line with
this image of industrial development are explained.

248
 Figure 10-10 Image of ICT industry development in Uganda
Source: PopulationPyramid.net (https://www.populationpyramid.net/)
Others are prepared by the research team.

249
 In the next and subsequent sections, specific support by JICA will be proposed in the short, medium
and long term. As shown in the figure below, it is necessary to distinguish between (1) the growth of the
supplier side of ICT solutions, specifically the software industry, and (2) the growth of the user side of
ICT solutions, specifically the growth of start-ups and mainly agriculture.
In addition, although the government of Uganda and others will be the main implementers of each
type of growth, it will be easier to visualize the support measures more concretely when the necessary
policies and measures to promote growth are considered and then the necessary support measures by
JICA are examined.
First, the necessary policies and measures by JICA regarding (1) the growth of the supplier side of
ICT solutions (mainly the growth of the software industry) is explained.

Figure 10-11 Approaches to Supporting the Development of Uganda's ICT Industry

Source: Compiled by the research team

250
(1) Proposed measures to foster the ICT software industry
The figure below shows an idea on measures to foster the ICT software industry in Uganda. The area
surrounded by the red dotted frame is an area that is expected to be focused on in the short and medium
term. Regarding support for market development, it is envisioned that market development support will
be provided mainly to companies that have achieved results in pilot projects at first. Then, in the medium
term stage, market development support will be expanded to various ICT software companies in Uganda.

251
Figure 10-12 Growth scenarios and growth support measures for the ICT industry (especially the software industry) in Uganda
Source: Compiled by the research team

252
(1) Maintenance of statistics
The first thing that became apparent through this survey was the lack of statistical information. In
particular, the team was under the impression that there was a lack of basic information on the industrial
structure of the ICT sector, such as sales and exports. The problem is that the information may exist, but
it is not disclosed to the public.
When a company makes an investment decision, it refers to a variety of information. It is believed
that there are quite a few investments that did not materialize due to lack of information.
Limited to the ICT industry, the following information is lacking.
・ Number of ICT companies by number of employees and/or by sales size (In addition to the number
of companies registered with NITA-U, other statistics need to be developed.)
・ ICT industry sales
・ Export value of ICT industry
・ The number of people employed in the ICT industry (information is available in ILO statistics, so it
is assumed to exist)
・ Input-Output table and its related statistics

When it comes to statistical information support, one would think of capacity building support for
government departments in charge of statistics, but even in Japan, it is the government-ordered
consulting firms that are actually doing the practical work of statistics. Therefore, it would be beneficial
if a Japanese consulting firm/think tank could simply collaborate with a local consulting firm in Uganda
to create a form that would allow them to carry out the work of sending out, collecting, and tabulating
the questionnaires.

(2) Promote study abroad and training in ICT-related fields

In the light of Vietnam's experience, it is highly likely that ICT-related study and training was effective.
The ABE Initiative is a well-known program for African human resources to gain experience in Japan,
combining English-language master's degree education at Japanese universities with visits to companies
and internships at Japanese companies. However, since this system recruits from all over Africa, the
number of Ugandans recruited is limited, and the system is not suitable for Ugandan personnel who
simply want to gain work experience.
There is also a scheme called the Internship Program to Promote Internationalization by the Ministry
of Economy, Trade and Industry. Currently, it is being conducted online due to COVID-19. Course A,
workspace type, is limited to Vietnam (Ho Chi Minh City, Hanoi, Danang), Thailand (Bangkok),
Indonesia (Jakarta, Bandung), Malaysia (Kuala Lumpur), India (Delhi, Gurgaon, Bangalore, Chennai),
and Cambodia (Phnom Penh). The home type of the course is for developing countries on the
OECD/DAC list, which includes Uganda. The duration of both Course A and Course B is short, with

253
activities lasting about 35 days and about 4 hours a day. Therefore, in addition to promoting the use of
existing schemes as described above, it would be effective to introduce a new, different scheme for the
Ugandan country, if possible.

(3) Strengthen the educational content of ICT educational institutions such as UICT.
Under Uganda's NDP III, UICT is supposed to play an important role in training ICT engineers in
Uganda. However, when the research team visited UICT, from the results of the interviews with UICT
and the demonstrations conducted by UICT students, it seemed that programming education with an
awareness of practical use was not conducted.
In order to increase the number of ICT engineers in Uganda in the future, it is thought that more
practical classes will be necessary. For example, the provision of educational contents by Japanese
programming education companies may be one effective means.
Other methods such as providing more opportunities for internships may also be effective. However,
interns are already part of the curriculum at UICT and the Computer Science Department at Makerere
University.
However, the effectiveness of the internship is probably limited because of the narrow scope of work
being carried out in Ugandan companies. In addition, due to the lack of ICT companies in Uganda, it is
believed that the appropriate companies are not able to accept interns. Top universities such as Makerere
University will have no trouble securing interns who can provide appropriate guidance, but companies
that can provide appropriate guidance to students from other universities have not been sufficiently
developed. The difference between Makerere University's Hackerearch ranking and the rankings of
other universities may be due to the fact that they do not provide such practical opportunities.
For this reason, it would be effective to have companies in Japan or other developed countries accept
online interns. Alternatively, a pilot project like this one, in which Japanese ICT companies order
Ugandan companies to conduct mock projects, while Ugandan ICT engineers intern at the Ugandan
companies, may be an effective form.

(4) Provide practical experience through pilot projects.

In this pilot project, both the participating Ugandan ICT companies and Ugandan engineers and the
Japanese companies revealed that they gained various experiences by participating in this project. In
addition, both the Ugandan and Japanese companies said that the intervention of the research team as a
third party helped them to coordinate well. If we can continue to implement such pilot projects in the
future, it will not only raise the level of ICT companies and engineers in Uganda, but also improve the
capacity of Japanese companies, which will be very beneficial as a new type of international support.
In the past, JICA provided support for the establishment of technical colleges in developing countries
in Africa, but the level of education was far from the practical level, and the majority of graduates could
not find ICT-related jobs. Information from questionnaires conducted among ICT engineers in Japan

254
suggests that practical-level skills are often acquired through work experience rather than school
education.
Therefore, if we proceed in the form of a pilot project such as the one conducted this time, in which
Japanese business is ordered to Uganda and Ugandan companies use the business to conduct internships
for Ugandan students, it may contribute to the capacity building of Ugandan ICT engineers and
companies.

Table 10-4 Where Japanese ICT engineers learn their engineering skills
Companies 36%

Learn by themselves 26%

Programing schools 14%

Universities 13%

Vocational schools 10%

Learn by friends, acquaintances, etc. 1%

Results of a survey of 270 ICT engineers in Japan46

Source: https://prtimes.jp/main/html/rd/p/000000069.000068228.html

(5) Tax incentives and investment promotion

In the 2000s and 2010s, Vietnam implemented preferential policies for foreign investment in the
software industry, such as exemption from corporate income tax (10% for 15 years) for four years, 0%
value-added tax on software products and services, and 0% export tax on software products. This has
been the foundation for the development of Vietnam's ICT industry.
In the case of Japan, tax incentives and measures to promote ICT investment were mainly provided
to companies on the need side rather than to companies on the seed side. However, support for seed side
companies has also been provided in the framework of human resource development, although not
specifically for ICT. For companies on the seed side, support for the development of ICT engineers
through subsidies for human resource development (formerly known as career development subsidies)
has been utilized.

46 However, in the case of Japan, the ratio of engineers who graduated from ICT-related faculties to ICT engineers is lower

than in other countries, so this should be taken into consideration.

(https://www.meiji.net/it_science/vol209_tomokazu-hayakawa)

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 Table 10-5 Government subsidies for human resource development in ICT companies
in Japan (subsidies for human resource development)
Subsidy rate / subsidy amount
Target Training to Note: ( ) indicates other than SMEs
Recipient Subsidies details
worker be paid When productivity
improvement is recognized
For regular Specific Business owner Grants for the following training [OFF-JT] [OFF-JT]
employees training ・ Training that contributes to ・ Expense subsidy ・ Expense subsidy
course improving labor productivity 45 (30)% 60 (45)%
Business ・ Training for young workers [60 (45)% *1] [75(60)% *1]
owners' ・ Training such as skill succession Wage subsidy ・ Wage subsidy
organizations, e ・ Training for global human resource 760 (380) yen / hour / 960 (480) yen /
development person
・ Employment type training [OJT * 2]
- Vocational training combined [OJT *2] ・ Implementation subsidy
with specific field certification ・ Implementation 840 (480) yen / hour / person
training subsidy
- Vocational training combined 665 (380) yen / hour /
with certified training person
<Maximum amount of subsidy per business establishment in
one year is 10 million yen>
General Business owner Subsidize for training outside of other [OFF-JT] [OFF-JT]
training training courses. ・ Expense subsidy ・ Expense subsidy
course 30% 45%
Business ・ Wage subsidy ・ Wage subsidy
owners' 380 yen / hour / person 480 yen / hour / person
organizations, e <Maximum amount of subsidy per business establishment in
one year is 5 million yen*3>
Education Business owner Subsidize when the company Fixed amount subsidy Fixed amount subsidy 360,000
and training introduces a paid education and 300,000 yen yen
leave grant training leave system and workers take
course the leave and receive training
Subsidize when a business owner ・ Expense subsidy ・ Expense subsidy
introduces a long-term education and (fixed amount) 200,000 (fixed amount) 240,000 yen
training leave system and has a record yen ・ Wage subsidy
of taking leave for a certain period of ・ Wage subsidy <Only when taking paid leave>
time or longer. <Only when taking paid 7,200 yen / day / person
leave>
6,000 yen / day / person
For non- Special Business owner Grants for the following training [OFF-JT] [OFF-JT]
regular training ・ General vocational training ・ Expense subsidy ・ Expense subsidy
employees course ・ Employment type training Actual cost*4 Actual cost*4
・ Fixed-term training ・ Wage subsidy ・ Wage subsidy
・ Training for training leaders of 760 (475) yen / hour / 960 (600) yen / hour / person
small and medium-sized enterprises person
[OJT*2]
[OJT*2] ・ Implementation subsidy
・ Implementation 960 (840) yen / hour / person
subsidy
760 (665) yen / hour /
person
<Maximum amount of subsidy per business establishment in
one year is 10 million yen>
* 1 It applies in the following cases.
・ Of the employment type training, vocational training combined with specific field certification training (construction industry, manufacturing industry,
information and communication industry)
・ For companies that have introduced the self-career dock system
* 2 Limited to employment-type training and training for leaders of small and medium-sized enterprises.
* 3 If you receive both the specific training course and the general training course in one year, the total of both courses will be up to 10 million yen.
*4 Per person. Set the upper limit according to the number of training hours. (Excludes training for training leaders of small and medium-sized enterprises)
Source: Ministry of Health, Labor and Welfare, Japan "Measures to Support Human Resource Development," https://www.mhlw.go.jp/content/000810356.pdf

256
 Table 10-6 Education and training benefits for individuals
Target When a person insured (*) or formerly insured by employment insurance who meets certain conditions takes and completes
an educational training course designated by the Minister of Health, Labor and Welfare.
(*) Those insured by employment insurance are general insured persons and older insured persons.
The same applies to this page.
Allowance ◆ General Education and Training
An amount equivalent to 20% of the expenses paid by the employee to the education and training facility (upper limit
100,000 yen)
◆ Specific General Education and Training
Amount equivalent to 40% of the expenses paid by the employee to the education and training facility (upper limit 200,000
yen)
Before starting the course, it is necessary to complete the procedures in advance by attaching the job card prepared and
supported by the training career consultant.
◆ Professional Practice Education and Training
(1) The amount equivalent to 50% of the expenses paid by the employee to the education and training facility.
(Maximum of 400,000 yen per year, maximum of 1.6 million yen for the maximum training period of 4 years)
(2) If the employee obtains a qualification, etc. and is reemployed or already employed as an insured person within one year
of completion of the training, an additional benefit of 20% of the expenses paid by the employee to the educational training
facility.
The total of (1) and (2) is equivalent to 70% of the expenses paid by the employee to the education and training facility. (Up
to 560,000 yen per year, with a maximum of 2.24 million yen for a maximum training period of four years) However, this
measure is limited to those who are taking the minimum 4 years of practical education and training under the law, as well
as those who are currently employed. This does not apply to those who receive relatively high wages. Before starting the
course, it is necessary to complete the preliminary procedures by attaching the job card prepared and supported by the
training career consultant.
Source: Ministry of Health, Labor and Welfare, "Measures to Support Human Resource Development,"

https://www.mhlw.go.jp/content/000810356.pdf

(6) Japanese language education with public support

In Vietnam, the government has been promoting Japanese language education for ICT engineers as a
national policy. If there are Ugandan ICT engineers who are interested in receiving offshore orders from
Japan, it is possible to promote Japanese language education for Ugandan ICT personnel. However, with
Western companies also looking for offshore opportunities for Ugandan ICT companies, it is
questionable to what extent Ugandan ICT companies and ICT engineers will be interested in doing
business with Japan. Therefore, it would be beneficial to consider creating an environment where human
resources, especially those who are interested in doing business with Japan, can learn Japanese rather
than promoting Japanese language education with JICA's support.

(7) Market development support (matching)

Vietnam and India have been implementing various matching programs between their ICT companies
and Japanese ICT companies under the initiative of industry associations.

＜Business matching event between Vietnamese ICT companies and Japanese ICT companies
・ Vietnam - Japan ICT Day (Held every year since 2007 by the Vietnam Software and IT Services
Association (VINASA) to promote collaboration between Japan and Vietnam in the ICT field.
2021Organized by Vietnam Software and IT Services Association (VINASA), Japan Information
Service Industry Association (JISA), Japan External Trade Organization (JETRO), and Vietnam -

257
 Japan IT Cooperation Committee (VJC).47
・ Vietnam - Japan DX Day 2021 (Online matching event on DX. Organized by the same as above)

＜Business matching event between Indian ICT companies and Japanese ICT companies
・ India IT Business Online Meeting & NASSCOM Online Seminar2020 (hosted by Osaka City, co-
hosted by NASSCOM (National Association of Software and Services Companies) Companies),
Indian Chamber of Commerce and Industry in Japan (ICCJ), Osaka Chamber of Commerce and
Industry, and Osaka Bureau of Industry)
・ Online pitch event for Japan (hosted by NASSCOM)
・ Japan-India IT & Digitization Business Online Exchange 2021 (co-organized with the India
Chamber of Commerce in Japan (ICCJ), the National Association of Software and Services
Companies (NASSCOM), and others).

Considering the fact that ICT skills are easier to obtain at younger ages, and that there is a high
possibility of producing excellent ICT engineers in Uganda, as well as the current low wages, Japanese
ICT companies would also benefit from matching.
Also, considering the high freelance rate of ICT engineers in Uganda, it will be important to promote
matching opportunities between companies in developed countries and top Ugandan engineers.
Currently, Tunga is starting business in Europe, so it is necessary to proceed in a way that does not put
pressure on the private sector and that allows for collaboration with such initiatives. For example, it
would be good to have a system to make a list of graduates of Makerere University and UICT and ask
for their recommendations.

47 https://www.jisa.or.jp/Portals/0/resource/vietnam/Vietnam-JapanICTWeek2021_JP.pdf

258
 Table 10-7 Comparison with the leading offshore destination from Japan after China
Uganda Vietnam India Bangladesh Japan
Population (ten thousand 4,574 9,734 138,000 16,469 12,648
people, 2020)
Population (million, 2040) 7,445 10,780 159,269 18,842 11,336
Total number of employees 8,931.1 49,755.0 406,246.2 60,827.6 64,815.1
(thousands)
Number of people employed 5.8 96.3 2,350.6 16.2 983.8
in computer programming,
consulting, and related
activities (thousands)
Percentage of total workforce 0.06 0.19 0.58 0.36 1.52%.
employed that is in computer
programming, consulting,
and related activities.
32,000 yen or per person per person per person per person
less (43%) per month per month per month per month
32,000 to 82,000 Programmer: Programmer: Programmer Member
yen (31%) 365,800 yen 333,600 yen 236,900 yen Approximately
8.2 to 130,000 Bridge SE Bridge SE Bridge SE 65 to 1 million
Per person per month
yen (13%) 4.864 million 549,200 yen 589,400 yen yen
(For Uganda, salary level)
Even if the unit yen PM
price per person Approximately
per month is 1 to 1.6
doubled, the level is million yen
still low.
Source: PopulationPyramid.net (https://www.populationpyramid.net/)
Employment figures are from ILO "Employment by sex and occupation -- ILO modelled estimates, Nov. 2020 (various) | Annual".
The unit price per man month for Vietnam, India and Bangladesh is available at Resorz Corporation "Offshore Development. com"
website (https://www.offshore-kaihatsu.com/contents/india/price.php)
The unit price per man-month in Japan is based on Cost Estimating Data, March 202 (Japan Information System Users Association
data).
(https://juas.or.jp/cms/media/2021/05/20_it-investment_2.pdf)
Uganda's salary levels are the result of a survey conducted for this study.

(8) Promotion of information disclosure by Ugandan companies

The Ugandan government is also promoting offshore development as part of the BPO business
development of Ugandan ICT companies. However, information on BPO for Ugandan ICT companies
is currently very difficult to obtain even by conducting Internet searches.
Therefore, it is possible to create a database of companies that undertake offshore software
development and introduce them all together on the NITA-U website, or to open a contact point to
introduce Ugandan ICT companies that are capable of conducting BPO.
In addition, there is little information available on the websites of the companies. In addition, even
when the survey team contacted the companies according to the contact methods described on their
websites, there were many cases where no response was received, so capacity building for responding
to inquiries from the companies and support for the construction of their websites will be necessary.

(9) Strengthen funding mechanisms

During the interviews with Ugandan ICT companies, we obtained the opinion that one of the
challenges from Ugandan ICT companies is that the interest rates for loans from financial institutions
are high and loans are difficult to obtain. It is very important to improve the financial ecosystem so that
enterprises can get the funding they need. In addition to expanding the sources of funding, capacity

259
building is also required so that appropriate financing decisions can be made.
Another way to do this would be to provide new funding options for ICT companies and engineers
through fintech and other means. Currently, the new fintech services offered in Uganda are mainly small
loans, which may be difficult to meet the funding needs of ICT companies, but they may be able to meet
the funding needs of ICT engineers working as freelancers.

(10) Study support for MBA courses and study abroad support
In order for ICT companies to grow, it is a prerequisite that the managers of ICT companies have the
necessary skills. Currently, the courses offered by UICT's Diploma in Computer Technology (DCT) and
Makerere University's Department of Computer Science are mainly ICT-related courses, with few hours
for other courses. In the case of UICT, there are about 3 credit hours of Book-keeping and Entrepreneur
Skills (which is considered to be about 60 hours). At Makerere University, the Entrepreneurship
Principles class has PH30 hours and TH30 hours of 3credit. However, it is unlikely that these hours
alone will be enough to acquire the necessary knowledge to become a manager. Therefore, it is necessary
to create a scheme to develop the knowledge to become a manager of a company and a mechanism to
match the managers of ICT companies with people who have specialized management knowledge (e.g.,
people who have experience in the strategy or accounting departments of companies). In the case of
Japan, ICT companies often hire people from banks and securities firms as CFOs, so matching ICT
companies with people from banks and securities firms may be effective.

(11) Improvement of the Internet environment

The results of the survey of ICT engineers in Uganda also showed that many of the respondents raised
the Internet environment in Uganda as an issue. The development of the Internet environment has been
included as an important item in the NDP III. The Ugandan government has already included policies
to increase the Internet penetration rate from 25% to 50%, and to reduce the cost of ICT equipment and
services, and this active promotion is required.

(12) Development of the legal system

NDP III includes two objectives as Objective 5: Strengthen the policy, legal, and regulatory
framework: "1. Regulate, coordinate, and harmonize the planning, sharing, and deployment of ICT
infrastructure in the public and private sectors" and "2. Review and formulate appropriate policies,
strategies, standards, and regulations to meet the needs of industry.
As for 2., it is considered necessary to have policies to introduce measures as shown in (1) through
(11). In the past, Vietnam's Ministry of Information and Communication (MIC) has continued ICT policy
dialogues with Japan's Ministry of Internal Affairs and Communications (MIC), gaining knowledge on
various policies through the dialogues and using it for their own policy planning. It is also necessary to
create strategies through such policy dialogues with other countries.

260
 The part surrounded by the red dotted frame shown in the above figure has changed from the short
term to the medium term. The logic is as follows.
First, support for ICT industries should be focus on human resource development such as Ugandan
ICT companies and ICT engineers who can conduct projects from overseas companies and also can
implement large-scale domestic system development. At this stage, we will focus on developing middle-
level and top-level engineers who will drive the ICT industry.
After that, support should be provided to Uganda ICT companies and ICT engineers who were
cultivated. By providing market development support, incentives, information disclosure support to the
companies that have left a track record in pilot projects, ICT companies that have been raised will be
expanded and the utilization of ICT engineers will be expanded. At this stage, it should be focused not
only on supporting middle-level and top-level human resources development, but also on developing of
a wider range of engineers. By shifting the focus area in this way, we believe that it will be possible to
foster Ugandan ICT software industry more effectively.

(2) Proposed support measures by JICA for the development of ICT software industry
The next page shows a proposal for support measures we recommend JICA to provide for Uganda to
implement the above-mentioned measures.

261
 Figure 10-13 Proposal of support measures by JICA
Source: The study team

262
(1) Technical cooperation on ICT statistics development and policy making
First, we believe that technical cooperation on the development of statistics will be important. In both
Japan and Vietnam, the ICT industry has developed because the government and industry organizations
have been able to collect statistics and formulate appropriate policies based on them. The Japanese
government has enhanced its official statistics, such as the Economic Census, to formulate policies based
on a more accurate understanding of the trends of companies and markets. In addition, Japan's White
Paper on Information and Communication, for example, orders various consulting firms to do the work
of gathering information.
First of all, we think it is necessary to provide technical cooperation to the Ugandan Ministry of ICT,
including discussions on what kind of statistics should be collected. Therefore, it will be necessary to
provide advisory services to the Ugandan Ministry of ICT, not only for the development of statistics,
but also for policy planning.

(2) Technical cooperation to strengthen ICT educational institutions such as UICT

Technical cooperation for strengthening ICT educational institutions such as UICT is also effective.
In the past, Japan provided a yen loan and technical cooperation to Hanoi University of Technology in
Vietnam (Higher Education Support Project (IT Sector)).
The contents are shown in the following figure and table.

Figure 10-14 Higher Education Support Project (IT Sector)

Source: https://www2.jica.go.jp/ja/evaluation/pdf/2018_VNXIII-6_4_f.pdf

263
 Table 10-8 Output plan and results of the project
Plan at time of review (2006) Performance at the time of ex-post evaluation (2018)
1) Procured equipment, etc. 1) Procured equipment, etc.
(a) Soft support (a) Soft support
1) Japanese language education 1) Japanese language education
Training of Vietnamese teachers: 5 Training of Vietnamese teachers: 3
Period of dispatch of Japanese teachers: 2006-2014 Period of dispatch of Japanese teachers: 2006-2016
Scholarships for International Students to Japan10 Scholarships for International Students to Japan
Faculty:4 Total Name80 Faculty: 80 students in total for 4 terms (30 from
Master's Degree:6 Total Name40 Keio University, 30 from Ritsumeikan University)
D.: Total number12 of 4terms (40 at the University of Life Science, 10 at the
University of Aizu)
Master: Total
D.: Total
(b) Hardware support (b) Hardware support
Educational equipment: Classroom facilities Educational materials and equipment: As planned;
(interior, air conditioning, desks and chairs, copiers, additions: Bi
etc.) Equipment for dog data
IT education equipment: network, server IT education materials and equipment: Generally in
line with plan.
(replaced once), personal computer Not procured materials and equipment for language
(2 times replacement), software, etc. education and some software, etc.
Other teaching materials and research equipment: Other teaching and research materials and
laboratories and research equipment: Mostly planned
Room equipment As you can see, only some books were procured.
2) Consulting services 2) Consulting Services
(a) Support for implementation of Japanese language (a)-(c) were implemented as planned.
education
(b) Support for selection of study abroad destination
and acceptance
(c) Assist in bidding and contracting for educational
materials and equipment, and supervise construction
Source: Materials provided by the implementing agency
*https://www2.jica.go.jp/ja/evaluation/pdf/2018_VNXIII-6_4_f.pdf

The yen loan and technical cooperation project (HEDSPI program) to Hanoi University of
Technology has received high evaluation results during the ex-post evaluation. The project is highly
appropriate as it confirms the consistency with Vietnam's economic and educational development
policies, development needs, and Japan's aid policies. In particular, most of the graduates are employed
in Japanese and Vietnamese IT companies, and some of them have started their own IT companies
employing hundreds of people. Some of them have started their own IT companies employing hundreds
of people. The graduates have become IT personnel whose skills are highly valued by employers and
customers, and their contribution to the Vietnamese IT industry has made an impact. In addition, the
support measures for Bangladesh are also helpful. Although Bangladesh is still inferior to Vietnam in
terms of the degree of development of the ICT industry, it is a useful initiative in terms of supporting
the development of ICT human resources for Japan.

264
 Table 10-9 Examples of ICT industry support measures for Bangladesh
・ 2009-2014: Facilitation activities for ITEE implementation by JOCV computer technology corps
members
・ 2012-2015: ITEE Management Capacity Building Project (technical cooperation project)
・ 2014-2015: Information processing using e-learning systems for vulnerable communication
environments.
・ Research on how to make a case for an engineer exam (ITEE) preparation course
・ 2015-2017: ICT-based secondary education and vocational training support services project
readiness study (BOP Promotion of business collaboration)
・ 2017-2019: Dissemination and demonstration of the Information Technology Engineer
Examination (ITEE) preparation course using an e-learning system that can cope with vulnerable
communication environments.
・ 2017-2021: ICT human resource development project targeting the Japanese market
Source：https://www.jica.go.jp/activities/project_list/knowledge/ku57pq00002jve6b-att/2009_021_cam.pdf

Table 10-10 Outline of the ICT Human Resource Development Project Targeting the
Japanese Market
・ Project Schedule (Cooperation Period)
Scheduled for May 2017 to April 2021 (48 months in total)
・ Total project cost (Japan side)
Approx. 530 million yen
・ Overview
(a) Dispatch of experts (total: about 257 MM) (General management, ICT human resource
development, ITEE education and management, PR and branding strategy, Japanese language
education, etc.)
(b) Provision of equipment (copiers, printers, computers, etc.)
(c) Training in Japan/third country (ICT human resource development, ITEE management)
Source：https://libopac.jica.go.jp/images/report/12345807.pdf

In the case of Uganda, it depends on how many human resources are interested in doing business with
Japan, but support for Japanese language education and scholarships for foreign students to Japan may
be one effective way. The main feature of the HEDSPI program is to provide Japanese language
education to meet the demands of Japanese IT companies. The HEDSPI program is mainly characterized
by its Japanese language education to meet the demands of Japanese IT companies, and the employment
record of graduates with IT and Japanese language skills in Japanese IT companies has become a
strength, leading to the securing of new students for the HEDSPI program even after the increase in
tuition fees. The ex-post evaluation pointed out that it is necessary to ensure the quality of Japanese

265
language education in order to continue this program. At the time of the ex-post evaluation, it was
reported that it was difficult for SoICT to secure Japanese language instructors mainly due to
compensation factors, and therefore, the salaries of Japanese language instructors were being
supplemented by Company A, a Japanese IT company with which SoICT has a partnership. Therefore,
in order to ensure that the project does not end up being an effort during the period of assistance, it is
important to have companies that will accept the trained human resources and be actively involved in
the education business. We believe that it is effective to start with small-scale initiatives rather than
jumping into full-scale introduction of Japanese language education.

(3) Coding contest (conducted throughout Africa)

In this pilot project, there were no particular issues with the coding skills of the Ugandan ICT
engineers, but it will be important to improve their coding skills in order to develop more complex and
advanced systems. In the survey of ICT engineers, 40% of the respondents cited coding ability as a
challenge, so it is important to take measures to address this issue.
One initiative to improve coding skills is the proliferation of coding contests. There are many existing
contests, including Codeforces, CSA contests, Google Code Jam, HackerRank, Kaggle, LeetCode, and
Topcoder (in alphabetical order). It is important to promote the utilization of these existing coding
contests, but the individual data of the participants of these contests are not disclosed and detailed
analysis by the third parties is impossible. By holding a coding contest on its own throughout Africa,
JICA will be able to grasp the skill level and issues of ICT engineers in each country and can consider
cooperation measures in the ICT sector. In addition, the information obtained from the coding contest
can be utilized when implementing a new pilot project (the ICT engineers who participated in the pilot
project of this study are participants in the JICA Uganda’s coding contest).
In Japan, AtCoder, yukicoder, and other companies are also holding coding contests. If we provide
Japanese language education, we can collaborate with these Japanese companies to offer coding contests
in Japanese, aiming to improve both Japanese language skills and coding ability. This will also make it
easier to compare the skill levels of Ugandan ICT engineers with those of their Japanese counterparts,
and thus broaden the scope of utilization of Ugandan human resources.

(4) Technical cooperation through pilot projects

The pilot project implemented in this project is not something that could be implemented by the
Ugandan side alone, and it would be very beneficial for JICA to support the continued implementation
of such a pilot.
In this project, two methods were used: a) Japanese ICT companies placed simulated offshore orders
with Ugandan ICT companies, and b) Japanese ICT companies used simulated Ugandan ICT engineers
to train the engineers. The following methods in cooperation with Ugandan ICT educational institutions
may also be effective.

266
 Figure 10-15 Structure of the Offshore Pilot Projects
Source: The study team

(5) Business Matching Support / Promote matching opportunities between Japanese companies and top
Ugandan engineers
ICT-related industry organizations in Vietnam and India have been actively promoting business
matching between ICT companies in those countries and Japanese ICT companies. We believe that one
effective way is to promote business matching between the Ugandan ICT industry and Japan. However,
if we aggressively promote business matching in a situation where there are few promising Ugandan
ICT companies, the Japanese companies that are matched with Ugandan ICT companies with inferior
capabilities may be disappointed in the Ugandan ICT industry as a whole. Therefore, it is necessary to
proceed with the business matching carefully, and it is desirable to implement it as a medium- to long-
term sight-seeing measure rather than a short-term support measure.
Matching events require a lot of time and effort from the event administrative office, such as listing
companies and preparing their overview materials. In addition, if the intermediary(event administrative
office) does not function well, participants may be disappointed in the matching event, so it would be
more appropriate to outsource the matching event to a Japanese consulting company that has a wealth
of know-how on matching events.

Table 10-11 Flow of expansion of matching events

Short term Improve the capacity of ICT companies by carrying out pilot projects
Medium term Conducted an event to introduce companies whose capabilities were confirmed
through the pilot project to ICT companies in Japan.
Long term Organize an online matching event similar to the one currently conducted by
Vietnamese ICT companies. Both Ugandan ICT companies and Japanese ICT
companies will be invited to participate in a wide range of matching events.
Source: The study team

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 In addition, there was a matching event for ICT industry in Pakistan conducted by JICA, which
proceeded as follows.

Table 10-12 Reference: 2021 Pakistan ICT Industry Business Matching Event
Conference Name: 2021 Pakistan ICT Industry Business Matching Event
Date: Tuesday, April 27, 2021 - Wednesday, April 28, 2021
Organizer: Japan International Cooperation Agency (JICA)
Co-organized by: United Nations Industrial Development Organization (UNIDO), Tokyo Investment
and Technology Transfer Promotion Office
Venue: Online (ZOOM)

・ Main Participants
Kuninori Matsuda, Ambassador Extraordinary and Plenipotentiary, Embassy of Japan in Pakistan
Mr. Ajmal A. Awan, Director General, International Liaison Bureau, Ministry of IT and
Telecommunications, Pakistan
Mr. Taku Nishimura, International Negotiation Specialist, International Strategy Bureau, Ministry of
Internal Affairs and Communications
Mr. Hirokazu Morita, Director, Cooperation Division, Center for International Cooperation in
Computerization (CICC)
Tomoyuki Naito, Vice President, Kobe Institute of Information Graduate University
Mr. Keishi Takebe, Executive Director, Japan Embedded Systems Technology Association (JASA)
Nobuhiro Kawatani, Director, South Asia Division 2, South Asia Department, Japan International
Cooperation Agency (JICA)

・ Background and Objectives

To introduce Pakistan's ICT market to Japanese companies and to introduce Japanese ICT industry to
Pakistani companies and government.
Promotion of investment in Pakistan by Japanese ICT companies through matching of ICT companies
between Japan and Pakistan, etc.

・ Contents
On the first day, an overview of the Japanese ICT market and the human resources required by
Japanese ICT companies were introduced to the main Pakistani government officials, educational
institutions, and private companies from the standpoints of Japanese industry, government, and
academia.
On the second day, six Pakistani ICT companies gave presentations on their products, technologies,
and services to introduce the attractiveness of Pakistan as an ICT market mainly to Japanese private

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 companies.
In the latter half of the event, five of the six Pakistani companies that were pitched had individual
meetings with Japanese companies.
Source: JICA website (https://www.jica.go.jp/information/seminar/2021/20210428_01.html)

It is also important to promote matching opportunities between Japanese companies and Uganda's top
engineers. In this regard, it would be effective to hold matching events with graduates of Makerere
University and UICT.

(6) Technical cooperation for information dissemination on Ugandan ICT companies

As a technical cooperation on information dissemination of Ugandan ICT companies, for example,
when NITA-U creates an introduction website for Ugandan ICT companies, it can provide information
on what kind of information is needed by the companies in developed countries that place orders and
make the introduction website more attractive to the companies that place orders.
In addition, in order to improve the ability of Ugandan companies to disseminate information, it would
be effective to include Ugandan ICT companies in the scope of the acceleration program and to improve
the public relations capacity of Ugandan ICT companies through the acceleration program.
This time, we held a briefing session on the results of the business communication and quality control
project and the business matching demonstration project for Japanese companies, and it would be more
effective to hold a PR event or create a PR video that includes Ugandan ICT companies by taking
advantage of opportunities such as TICAD.

(7) Two-step loans and technical cooperation for fostering ICT industry
In the past, JICA has used two-step loans for the promotion of SMEs in Vietnam. In the first phase of
the SME Support Project (March 1999 to March 2004)48, the number of loans provided was 252 and the
type of business was unknown. In the second phase of the SME Support Program (March 2005 to
September 2008)49, loans were provided to 322 companies, and Information Technology may have been
included in the "Other"8 category. In the third phase of the SME support project (November 2009-
December 2014)50, loans were provided to 101 companies, of which Info-telecom was one. In the case
of Vietnam, the two-step loan was rarely used by ICT companies, but the project is highly appreciated
as it has contributed significantly to the growth of SMEs in Vietnam.
In Uganda, if there is a problem with the funding mechanism for ICT companies, the use of such two-
step loans may be effective. However, in the case of two-step loans, even if the interest rate on the
original yen loan from JICA is low, the interest rate is often set at a level close to the market rate at the

48 https://www2.jica.go.jp/ja/evaluation/pdf/2006_VNVI-9_4_f.pdf
49 https://www2.jica.go.jp/ja/evaluation/pdf/2012_VNXII-5_4_f.pdf
50 https://www2.jica.go.jp/ja/evaluation/pdf/2016_VNXVII-1_4_f.pdf

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city bank that ultimately provides the loan to the company. Therefore, setting a ceiling on interest rates,
etc., is an issue (Note that the SME Support Project III increased the number of loans by removing the
ceiling during the period of economic downturn).
We think it is better to consider whether financial cooperation such as two-step loans to Ugandan ICT
companies is really effective, and to consider more detailed financial cooperation in consultation with
local financial institutions such as Uganda Development bank and local private banks. In particular, as
will be described later, it is also raised as an issue for fostering the demand side of the ICT industry and
fostering startups. Therefore, when discussing the financial mechanism, it is better not to limit the
discussion to the software industry but to broadly consider the target of the ICT industry.
In 2007, JBIC conducted a two-step loan for the Uganda Development Bank for the cotton product
manufacturing business. The amount is $ 2.5 million.
Furthermore, it is necessary to improve the examination capacity of market banks. When considering
the above-mentioned discussion, it is better to discuss the necessity of technical cooperation to improve
the examination ability of Ugandan local private banks.

Table 10-13 Comparison of Interest Rates on SME Support Project III Loans and
General SME Loan Interest Rates at Participating Financial Institutions (Reference
Value)
General
SMEFP 3
SME loan
Loan interest rate (annual interest rate) 7.5-10.38% 7.0% -12%
Funding interest rate (2017)
4.92% 6.5% Note
February annual interest rate)
Spread 2.58-5.46% 0.5-5.5%
Source: Interview survey with PFI

Note: SBV refinancing rate (SBV decision 496/2014 / QD-NHNN) is provided.

(8) Use of the ABE Initiative

The ABE Initiative has been contributing greatly to the development of ICT human resources in Africa.
If Uganda aims to place ICT as the center of its industry, it should continue to actively send talented
people in the ICT field to Japan as ABE Initiative students and have them return home with knowledge
and skills. JICA is also required to actively provide such support.

(3) Proposed measures to foster startups

The research team identified key issues to be addressed to enhance the startup ecosystem as described
in the table below. While the unfavorable business environment and government policy to startups entail
serious challenges, this will require a mid-long term strong government intervention. Currently, the large
gap which has not been well addressed and remains as a white space is in the areas of business

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development support and access to finance for startups at growth stage or who need supports for scaling
up their businesses. While there are quite many grants such as from Master Card and Shell foundations
etc. as well as pre-seed or seed stage investment with smaller ticket size, VC or angel activity is still
weak.

Table 10-14 Issues identified in the survey

Items Issues
Human Resources  There is a lack of human resources in technology and business
management for startups.
 NINJA JICA Uganda’s selected startups also face ICT issues in scaling
up their business (ChapChap, Easy Matatu)
Business  Challenges in the business environment, as well as unfavourable
Environment/ government policy (electricity, internet connection, starting a business,
Business tax, etc.)
Development  Business development support is still weak. Though strong government
Support support for BPO exists, there are fewer ecosystem players, such as
accelerators, compared to other startup leading countries in Africa in this
field. Accelerator programs are not designed to support SUs for moving
them to early/growth stage (business model and scalability).
 There are many grants, such as Master Card Foundation program) or
seed stage investments, but funding gaps exist at the early and growth
stages.
Access to finance
 Private banks in Uganda are risk-averse and do not have the capacity to
provide debt financing to startups without stringent conditions (e.g.
collaterals).
 The startup ecosystem network is being developed but is still
fragmented. Startup Uganda and Kampala Innovation Week are in the
Community process of creating funding opportunities, but according to ecosystem
stakeholders, horizontal/vertical connections and synergies are still
weak.
Source: Compiled by the research team

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 Figure 10-16 Growth scenario on the industry side that uses ICT (mainly assuming startup)
Source: Compiled by the research team

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1) Capacity building of human resources
To address the lack of human resources in technology and business management for startups,
development of both technical human resources and management human resources are indispensable.
In particular, good entrepreneurs help leaders in startups to improve business management skill.
Therefore, fostering entrepreneurs is important. Also strengthening business related business
management will support improvement of business management skill.

2) Strengthening government policies to support startups

In Uganda, various policies and measures to support startups have already been set out and
implemented in key national development policy documents. The Vision 2040 sets out policies for ICT
human resource development, innovation support, public-private partnerships to provide value-added
services to promote startups, development of high-tech cities, and review of the legal and regulatory
framework. In addition, NDP III (2020/21 to 2024/25) sets specific outcome indicators for increasing
ICT penetration, promoting employment in the ICT sector, and creating innovation.
Representative government initiatives include the Ministry of ICT supporting innovators and startups
in the country through NIISP from FY 2017/18 to FY 2021/22. In 2015, UIA presided over Uganda's
first Private Equity and Venture Capital (PEVC). In 2017, the Kampala Innovation Week was launched
with sponsorship by the Ministry of Science, Technology and Innovation, Startup Uganda, the country's
accelerator network, and UNCDF, with events aimed at building linkages between startups and investors.
These efforts can be as a basis for further promoting startup development in Uganda in the future.
On the other hand, in the dialogues with various stakeholders in this survey, it was mentioned that the
unstable and unfavorable government policies are a challenge for the further promotion of startups. In
addition, typical challenges in the investment and business environment in developing countries are also
recognized in Uganda, such as inadequate infrastructure including electricity and internet environment,
weak rule of law, lengthy administrative processes, unfair competitive environment, and insufficient
coordination among government ministries and agencies. In terms of attracting startup investment, the
double taxation when establishing a fund in Uganda and the capital gains tax rate (=30%), which is set
higher than other countries, lead to higher transaction costs for startup investment.
Based on the above findings, in order to promote the development of startups in Uganda, it is
necessary to further strengthen the existing startup support policies by the government, analyze and
work to solve various policy issues in the business environment, and strengthen the foundation of the
startup ecosystem.

3) Strengthen accelerators and acceleration programs

In Uganda, according to Hi-Innovator, there are about 30 accelerators and incubators, but compared
to Kenya and other countries, the number of players responsible for nurturing startups is still small. In

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2019, Startup-Uganda was established with the support of UNCDF, with Innovation Village, Outbox,
and Hive Colab as core members. It is hoped that Startup-Uganda will become a startup hub to enhance
collaboration among accelerators.
One of the key challenges of the Ugandan startup ecosystem is that there is little collaboration among
accelerators and other players, and no system for cooperation and information sharing (in other words,
the startup ecosystem is “fragmented”). Startup-Uganda was established to address this problem, but it
is still in its early stages.
There is also the issue of support capacity of accelerators. The majority of Ugandan startups are in
the pre-seed and seed stages, and there are few companies in the early (Series A and Series B) stages of
growth. Therefore, there are few accelerators or mentors who can guide pre-seed and seed companies to
reach the growth stage. In order to support the growth of Ugandan startups in the future, it will be
necessary to find and utilize human resources who are familiar with technology and business
management in order to meet the needs of early (Series A and Series B) growth stage companies.

4) Strengthen funding mechanisms for startups

As already mentioned, Ugandan startups are mainly pre-seed and seed stage companies, with a small
number of early (Series A and Series B) stage companies. As a result, the funding provided to startups
has an element of impact investing, with the focus being on grants for commercialization. According to
the information obtained in this survey, many Ugandan startups are dependent on grant funding for their
income and have not yet established sustainable businesses. It is hoped that the Ugandan startup
investment market will move away from this structure and that startups will work to obtain sustainable
growth capital rather than grants.
One of the reasons for the underdevelopment of the startup investment market in Uganda is the
mindset of the startup companies. In other words, Ugandan companies have a tendency to stay in "their
own business" and prefer indirect financing and grants rather than direct financing (equity investment).
According to interviews with several investors in this survey, although they are cautious about
investing in early-stage (Series A and Series B) companies at this time, they are of the opinion that the
market has the potential for growth and that they would be positive to support startups if the opportunity
arose. In other words, there is room for growth capital investment in Uganda in the future if the startups
as potential investment targets can achieve growth.

5) Promote collaboration among ecosystem stakeholders

Current startup ecosystem network in Uganda still fragmented and required to be strengthen. It is
required to promote collaboration among ecosystem stakeholders such as entrepreneurs, accelerators,
investors, banks, policy makers, universities, Business Development Services (BDS), and donors.

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(4) Proposed support measures by JICA to foster startups
Based on the necessary measures in Uganda for the development of startups as described above, the
next page shows the proposals for the expected support from JICA.

275
 Figure 10-17 Idea on cooperation from JICA to Uganda
Source: Compiled by the research team

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 Among key issues to be addressed, the research team would like to recommend, as the highest priority,
support from JICA addressing the large gap in business development and access to growth-stage finance
by continuing and enhancing its JICA NINJA program with a focused target on growth-stage startups.
Through the JICA NINJA program, many similar associated events can be organized in order to connect
the startup ecosystem players, including accelerators, incubators, angel investors/VCs, banks etc.

Below are further details from the task force regarding the findings and recommendations on the four
areas described above, namely, 1. Human resources, 2. Business environment / Business Development
Support, 3. Access to Finance, 4. Community.

1) Human Resources
There is a shortage of human resources related to technology and business management. This is well
described in the ICT sector report in this project.
Our survey of local hubs and startups revealed that they see tech-talent deficiency as a major challenge
to the growth of the ecosystem. However, upon implementing a series of demonstration projects between
Japanese firms and Ugandan ICT engineers, we concluded that some qualified engineers do exist in
Uganda. JICA would provide support to Ministry of ICT’s Innovation Hub to develop programs that
help train, assess, and keep records of a large number of tech-talent and engineers.

2) Business Environment and Business Development Support

2) -1 Business Environment - Support for strengthening startup support policies
Government policies that directly affect startups have had a few very public and unpredictable
changes, such as the transfer of the Ministry of STI (Science, Technology, and Innovation), the sudden
imposition of social media tax, and the unannounced internet shut-down during the presidential election.
This has contributed to the startup ecosystem’s opinion that the government is unpredictable and
unstable.
Ecosystem players have also complained that relevant government arms and ministries seem not to be
in sync. For instance, the Ministry of ICT has the Innovation Hub, while NITA-U also has the BPO &
Innovation Council, and the Uganda Investment Authority (UIA) is planning to build 25 new industrial
parks, 5 of which are going to be science, innovation, and business parks.

2)-1-1 Startup support policy research

In order to analyze and examine the bottlenecks and improvements in Uganda's startup support
policies, a more detailed and extensive research should be undertaken for startup support policies. For
example, the following research items (tentative drafts) could be considered.
・ Examine the achievements and challenges of existing measures and necessary additional measures

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 with regard to soft measures such as human resource development and innovation support, hard
measures such as ICT infrastructure and incubation facilities, and financial support measures for
startups.
・ Examine the functions of major related ministries and agencies such as the Ministry of ICT and
National Guidance and the UIA, and also necessary collaboration systems.
・ Examine measures to collaborate with universities and research institutes to promote innovation
and strengthen the foundation of startups from a long-term perspective.
・ Examine necessary incentives and taxation frameworks, especially with a view to mobilizing
growth capital from investors.
・ Examine the infrastructure necessary for a better entrepreneurial environment, such as electricity
and the Internet.
・ For each of the research items, collect information on advanced cases overseas and examine the
applicability to Uganda.

2)-1-2 Policy dialogue with the government and policy recommendations

Based on the results of the startup policy research, the policy dialogue with the Ugandan government
would be held and recommendations on policies and measures that the Ugandan government should
take would be made.

2) – 2 Business Development Supports: Support to strengthen accelerators and acceleration program

2)-2-1 Continued expansion of the acceleration program
Existing local accelerators are not designed - and therefore not equipped - to address the needs and
demands of Series A or pre-Series A startups. Uganda accelerators seem primarily designed to house
early-stage startups and help them achieve grant-funding. There also seems to be a deficiency in program
structure. JICA NINJA pre-Series A startups have provided valuable positive feedback, but also
constructive criticisms as follows:
・ More coaching is needed regarding valuation
・ At this level, startups need mentors with a higher level of expertise, and the startups should get to
choose them
・ Much more one-one-one mentoring (as opposed to bundled classes) because the needs are
customized (e.g. scalability, business models)
・ There is a lack of access to enough real investors

The JICA-NINJA program was unique in that it addressed this pre-Series A and Series A “white
space”. This uniqueness, and its significance, was noticed by our local hub partners, as well as the
Ministry of ICT Permanent Secretary Dr. Aminah Zawedde, the participating startups, and many more.

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NINJA has put light upon Uganda’s new emerging pre-Series A sector (“white space”) and highlighted
how Uganda’s ecosystem now has a new level of needs and demands which need to be systematically
addressed. It is recommended that NINJA be continued soon to take advantage of being seen as a pioneer.
In this survey, the survey team collaborated with accelerators in Uganda and conducted a series of
activities as a pilot project (JICA-NINJA program in Uganda), including selection of startups,
implementation of an acceleration program, proof of concept (POC), holding a pitch event, and matching
with investors. In the pilot project, Ugandan startups were actually targeted and various kinds of support
were provided. Through the pilot project, significant growth was observed in the targeted startups. In
particular, the evaluation of POC in the ecosystem players was very high, and JICA-NINJA was
recognized as a unique program that no approached acceleration in a way no other program has so far.
In addition, this activity was a good opportunity to disseminate information about Ugandan startups to
investors.
Collaborating with Ugandan accelerators and implementing acceleration program is the most
effective and practical activities to strengthen the accelerators and acceleration program. JICA's
contribution is very significant, especially considering that there are no local acceleration programs
targeting early and growth stage startups, and it is an important support for the evolution of the startup
ecosystem.
It is proposed that the JICA-NINJA program be continued for a longer period of time and at a larger
scale. While it is desirable to be able to expand the scale of the program, it is most important to continue
to implement it.

2)-2-2 Finding, training, and utilizing competent mentors

In the future, it is desirable for Uganda to strengthen its accelerators and acceleration program for
early-stage (Series A and Series B) startup companies that have entered the growth stage. However, in
order to do so, it is essential to have mentors who are well capable in technology and business
management, but there are currently few such people in Uganda.
In order to secure human resources to provide more advanced acceleration program, it is proposed
that JICA, as part of its support program, utilize the network of the initiative, identify useful human
resources such as those with private business management experience, those with overseas experience,
and those with degrees such as MBA, and utilize them in the acceleration program supported by JICA.

3) Access to Finance: Support for strengthening the funding mechanism for startups
Because of the abundance of $20k-50k grants, the Ugandan ecosystem has developed what is known
as “grant-preneurship”. According to our interview with Open Capital Advisors, 80% of Uganda’s
startup revenue comes from grant funding, and the majority of Ugandan startups rely on going from one
grant to another.

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3)-1 Information dissemination to investors
It is expected that the startup investment market in Uganda will move away from a grant-oriented
structure and become more active in investing growth capital in early-stage (Series A and Series B)
startup companies.One of the short-term and effective ways to achieve this is to disseminate information
about the startup companies to be supported to investors in JICA's ongoing acceleration program. This
will require networking with impact investors, foundations, venture capitalists, and financial institutions
in Japan, Uganda, and abroad who are assumed to be interested in Ugandan startups.

3) -2 Funding by Japanese ODA

JICA has a variety of ODA funding tools, which can be used to promote private investment in
Ugandan startups. As an example, the following methods can be considered. Of course, a more detailed
and specific analysis of the financial needs is necessary for actual consideration.
・ Invest in equity funds targeting Ugandan startups through JICA’s Private Sector Investment and
Finance, or establish a fund targeting early-stage startups with the Ugandan government and
financial institutions. Investing in Ugandan startups is generally considered to be a risky
investment for investors. Therefore, JICA's participation as an LP is required to mitigate this risk
and function as a catalyst for private investment.
・ In collaboration with the Development Bank of Uganda and others, provide yen loans (two-step
loans) to startups through banks in Uganda to provide loans on favorable terms. However, this
will rely on the capacity of Ugandan banks. This will complement direct financing and provide a
wide range of funding mechanisms, including indirect financing, to startups. In this case, it is
important to create a mechanism that can contribute to the development of the Ugandan financial
market by, not only providing funding as JICA, but also mobilizing funds from commercial banks
and incorporating capacity building for startups in finance and fundraising.

4) Community Building a collaborative system of startup hubs

Despite the existence of Startup Uganda, an association of 19 of Uganda’s accelerators, the opinion
among key ecosystem stakeholders has been that the ecosystem is “fragmented”, which has been a major
challenge to the growth of the ecosystem. Accelerators are not sharing information, not collaborating,
not organized and even suffer from toxic competition, according to Starthub Africa founder Matthias
Mobius, Hive Colab founder Barbara Birungi, SHONA’s Ivan Mandela, NSSF Hi Innovator director
Alex Rumanyika, and many more.
Hive Colab founder and director Ms. Barbara Birungi shared “many hubs are trying to be everything
for everyone … and that is not possible.” There is a great need for Uganda’s start-up hubs to do what
they are capable of and share with each other and with the ecosystem what they are uniquely good at
compared to other hubs. This would allow entrepreneurs to know exactly which hub to go to for what,
depending on target sector, products or services, and stage of growth. It would also allow for a “start-up

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value chain” where start-ups can plan to attend one hub after the other in order to receive the best support
during different phases of development.
Therefore, a key issue in Uganda's startup ecosystem is the lack of collaboration among accelerators
and other players working to promote startups. In the JICA-NINJA program implemented in this survey,
three institutions (The Innovation Village, Outbox, and Hive Colab) which are key members of Startup-
Uganda, formed a consortium and became partners for this survey. This structure was very effective in
strengthening the collaboration of the Startup Hubs through actual activities. It is proposed that Startup-
Uganda will continue to be the axis of the collaboration system in the Ugandan startup ecosystem and
work to strengthen the collaboration through actual activities such as acceleration programs. The efforts
of this consortium have contributed to fostering a renewed awareness among ecosystem stakeholders of
the importance of collaboration through pilot project. On the other hand, it should be noted that even
with a clear division of roles in the execution of an acceleration program, it may take time for
collaboration in the execution stage, and that a system in which one player leads and other players are
involved may be more effective in the future.
In addition, if there would be the agreement with Startup-Uganda and other related players, it may be
possible to build a database for sharing information on startups, and to build a concrete and feasible
system for sharing human resources.

(5) Proposed measures to promote agricultural DX

In Chapter 8, we listed the DX issues, but we need solutions to these issues. Therefore, using the
framework for organizing the DX issues described above, we have organized the solutions as follows.
1. User's perspective
People
• Improve ICT literacy through school education.
• Improve the management skills of farmers, agricultural extension workers, and other users
through training, and workshops.
• Establish a vision and goals for DX, develop guidelines, and ensure that everyone involved
throughout the company understands why they should use DX services.
Funds
• Develop financing schemes for users such as low interest loan programs.
• Develop DX services that can be used at low cost.
Products and Technology
• Facilitate the distribution of low-cost devices.
• Formulate technical support systems and other measures to migrate from existing systems
to new IT systems.
In addition, online interviews were conducted with local companies, and one of the items
considered particularly important by local companies was the development of DX services that

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 can be used at low cost.

2. Supplier's point of view

People.
• Nurture ICT (system development, application development) startups.
• Develop ICT human resources (basic education).
• Develop ICT human resources (training and OJT support).
• Dispatch technical advisors to ICT companies.
• Organize training and workshops for ICT companies by foreign aid agencies.
Funds
• Develop a financing scheme for suppliers.
Products and Technology
• Open development space in universities and other research institutions to the private sector.
• Share development equipment.
In addition, online interviews were conducted with local companies, and the items considered
particularly important by local companies were the development of financing schemes for
suppliers and the opening up of development space at universities and other research institutions
to the private sector.

3. Social environment perspective

Infrastructure
• ICT infrastructure development (Internet environment development, radio wave
environment infrastructure development, power infrastructure development, hardware
distribution promotion, etc.)
• Provide training and support on cloud computing usage.
Regulation
• Design the legal system.
• Introduce tax incentives and investment promotion measures.
In addition, online interviews were conducted with local companies, and the items considered
particularly important by local companies were the development of the Internet environment and
the introduction of tax incentives and investment promotion measures.

A diagram summarizing the above DX issues and their solutions is shown below. The solutions are
categorized according to the time frame in which they are to be provided, ranging from short-term
measures that can be started immediately to long-term measures that require more time to consider and
provide. As a result of the online interviews with local companies, items that were considered
particularly important by local companies are shown in red.

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 Figure 10-18 Issues and solutions for the shift to DX
Source: Compiled by the research team

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(6) JICA's proposed support measures for the promotion of agricultural DX
The "Information Gathering and Confirmation Study on the Establishment of Agricultural
Digitalization Infrastructure in Africa" outlines the following needs for intervention by the Japanese
public and private sectors, which will be helpful in this case as well.

Table 10-15 Direction of JICA's support as summarized in the "Information Collection

and Confirmation Survey on the Establishment of Agricultural Digitalization
Infrastructure in Africa
Intervention
Overview of the need and interventions
needs
1. Human ① Challenge: One of the bottlenecks in scaling up is the continuous training and
resource securing of agricultural digitalization personnel who can be leaders in rural areas. It
development is desirable to make the position of field worker in the e-agriculture cooperatives
more attractive to rural youth.
② Possibility of local government support: A training program for sustainable
development of human resources for agricultural digitization (i.e., field workers)
could be established, and a certification/qualification system could be introduced.
③ Possibility of JICA support: Grant aid for the introduction of necessary equipment
and technical cooperation for the training of instructors are envisioned. Some
Japanese universities and companies are focusing on the development of digital
human resources in Africa, and this network of human resources could be utilized.
Rules for ① Issue: Although there are laws and regulations for the protection of personal
using and information, the operations of digitization infrastructure providers are not necessarily
sharing monitored. There is a need for rules and monitoring systems specific to digital
information infrastructure, where data sharing is the lifeline.
② Possibility of local government support: One possible direction is to establish an
industry association and require the establishment of certain self-regulatory
guidelines. Self-regulatory guidelines could also be required in the form of
qualification for participation in wholesale platforms.
3. ① Challenge: Wholesale markets do not always function well, and even with the
Institutional development of electronic agricultural cooperatives, the problem of value chain
infrastructure fragmentation remains.
for wholesale
② Possibility of local government support: Enactment of wholesale market laws and
platforms
government ordinances that anticipate digitization, and institutionalization of "self-
regulatory organizations" where the operators themselves set the rules and conduct
monitoring are conceivable. In addition, as a response to digitization, rules for data
linkage, information security, API linkage, and other regulations will be necessary.
③ Possibility of JICA support: For system development, technical cooperation using
Japan's experience in agricultural data linkage infrastructure and related people as
resources is possible.
Source: "Information Gathering and Confirmation Survey on the Construction of Agricultural Digitalization Infrastructure in
Africa" (Public-Private Consultative Committee for the Promotion of Global Food Value Chains (GFVC) FY2021: Africa
Subcommittee Presentation Material)

As for agricultural opportunities, the Africa Field Innovation Center for Agricultural Technology
(AFICAT) is currently under construction.
While referring to JICA's existing efforts to examine support measures, the following diagram shows
how JICA could provide support for the measures identified in the previous section.

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 Figure 10-19 Proposed support measures by JICA
Source: Compiled by the research team

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(1) Technical cooperation on ICT literacy
As mentioned in the section on proposed measures, improving ICT literacy is essential for promoting
agricultural DX, and JICA's technical cooperation for this purpose will be effective. It will be important
to improve ICT literacy in the agricultural sector in cooperation with the efforts being made by local
foundations and other organizations. For example, it would be effective to use JICA's budget to support
some of these activities. It will also be important to improve general ICT literacy in the ICT education
that other donor agencies are conducting in Uganda.

(2) Technical cooperation on agricultural DX

The following technical cooperation will be required.
・ Dispatch of experts with specialized knowledge about agricultural DX
Agricultural DX in Uganda is currently promoted based on private sector efforts. However, in order
to promote agricultural DX in Uganda, policy measures are also required. For that purpose, dispatching
experts is beneficial.
Regarding expert dispatchment, it is necessary to dispatch two types of experts, one who should be
an expert in agriculture in developing countries and the other who should be an expert in ICT (an expert
who also has the knowledge of engineering and ICT policies). JICA has already dispatched experts on
rice cultivation to Uganda. Therefore, dispatchment of an expert in ICT sector is important.
For example, JICA’s “Information Collection Survey on Needs for Developing Countries in
Establishing Smart Food Chain” highlighted the following points in relation to the promotion of
agricultural DX. These are related to data management and data regulation rather than agricultural
policies and it is difficult for experts only in agriculture sector to address. It is also effective to dispatch
experts who can advise on related regulatory reforms and rule design such as satellite data and drone
usage regulations, data storage locations, reliability of local data, etc.

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 Table 10-16 Points highlighted in JICA’s “Information Collection Survey on Needs for
Developing Countries in Establishing Smart Food Chain”
・ In some countries, there are restrictions on the use of satellite data and drones for national security
reasons.
・ In some countries, it may not be possible to store data on a cloud server overseas.
・ Regarding robots, it is necessary to consider whether or not there are regulations in each country.
However, not many countries have strict regulations on robots that have little to do with security
issues.
・ Financial services need to be licensed by the central banks in each country. Whether fintech
services can provide lower interest rates than Agricultural Banks or not is very important for their
success.
・ In many cases, public research institutes are in charge of breeding. The main customers are
assumed to be national research facilities, universities, and private seed companies. There are
many technologies in research and demonstration stage.
・ It is necessary to pay attention to the reliability of public data (weather data, prices, etc.) obtained
locally.
Source: Compiled by the research team

・ Pilot project
March 25, 2021, the Ministry of Agriculture, Forestry and Fisheries of Japan compiled the
"Agriculture DX Concept" for the promotion of Agriculture DX. This includes the utilization of the
Ministry of Agriculture, Forestry and Fisheries common application service and the promotion of the
utilization of the Ministry of Agriculture, Forestry and Fisheries geographic information common
management system.
In section 10-3 (2) the support measures by JICA for fostering the ICT software industry, it was
recommended that JICA should support Ugandan government to develop a government system as a pilot
project. We recommend a project related to agricultural DX for its candidate. This will not only lead
to the development of companies and human resources involved in the ICT software industry, but will
also lead to the improvement of ICT literacy in the agricultural sector on the user side.

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 Figure 10-20 Japan's agricultural DX concept
Source: Ministry of Agriculture, Forestry and Fisheries "Agriculture DX Concept-Opening up the future of food and agriculture

with" Agriculture x Digital "-(Overview) "

・ Online seminar on the efforts of Japanese agricultural DX companies

It is beneficial for Ugandan Agricultural DX promotion to provide information to Ugandan companies
about what kind of business Japanese agricultural DX companies are doing, how they have expanded
their business in the past, and how they have addressed the challenges of business expansion. In
particular, monetization is also challenges for Japanese agricultural digital companies. Exchanging
opinions on their monetization know -how is beneficial not only for Ugandan agricultural DX companies
but also for Japanese agricultural DX companies.

・ Invitation of Uganda related startups to Japan

Inviting Ugandan-related startups to Japan is also an effective support measures. For example, in this

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survey, companies in Uganda that provide services related to field and work data are identified. Field /
work data management requires know-how for data acquisition and management. By inviting such
companies that provides services related to Uganda's field and work data to Japan, introducing Japan's
efforts, and exchanging opinions with Japanese companies, the company's business expansion and fields
in Uganda
It is effective to include Uganda, which provides services related to other agricultural DX, as an
invitation target. However, since it is necessary to identify Ugandan participants, it is important to secure
an appropriate counterpart in Uganda.

(3) Two-step loan to expand the use of ICT

In the two-step loan for fostering the ICT software industry, we recommend JICA to include a loan
scheme for companies that provide agricultural DX using ICT and for the ICT use of farmers and
agricultural corporations who will be the final users.
In the above-mentioned Figure 10-34, the two-step loan for fostering the ICT software industry is
included in "(2) JICA's support measures for fostering the ICT software industry".

(4) Support for business development of Japanese companies through private-sector collaborative
projects
Including the companies interviewed this time, there are Japanese companies that provide services
related to field, operation, and environmental data as mentioned above, and have a desire to expand into
Africa. Therefore, we will support the business development of these Japanese companies in Uganda by
using the scheme of the private sector partnership project.
As for the overseas expansion of the Japanese company in question, there are not only ways for the
company in question to directly set up a Ugandan base and develop its business, but there is also the
idea of finding a partner company in Uganda and promoting business development by the partner
company.

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 This report is a compilation of the results of a survey conducted by KPMG AZSA LLC on behalf of the
Japan International Cooperation Agency (JICA). While we have endeavored to compile this report in a
timely manner based on information available at the time of the survey, the contents of this report
may not correspond to the circumstances of specific individuals or organizations not included in the
scope of this survey, and we do not guarantee the accuracy or completeness of the information at the
time of receipt or thereafter. KPMG AZSA LLC assumes no responsibility, directly or indirectly, for the
use of this report by any third party who has reviewed this report or obtained a copy of this report.