In this second part of our blog series on female founders in tech in Uganda, we go further to explore their challenges in developing skills, building confidence and resilience, and sourcing capital for their ventures.

This blog complements part 1, accessible here.

When mentorship and acceleration programmes fall short

While acknowledging the value of mentorship, the female founders highlighted a challenge: many programmes teach skills that do not translate well to the Ugandan market landscape.

“I have participated in many mentorship programmes that promise access to funding for women, but they mostly teach skills that are not transferable to the Ugandan market,” Stella pointed out.

Josephine, echoed Stella's sentiments, emphasizing the need for tailored support. "Women need more than just skills; they need opportunities that resonate with their aspirations," she remarked.

“I started my business when I was in my 50s. My husband and I had accumulated some savings, and I took a bank loan using my assets. I wanted to start big. I didn’t know the impact the rapid expansion, high interest rates and pressures of managing family would have on me. Had I received adequate mentorship, we would not have spread ourselves too thin, and tried to work at a low scale,” Edith said.

Such disconnect between mentorship and the needs of women highlights another gap within the ecosystem.

Not enough role models

Josephine cofounded Lumjo in 1995, when software companies were few and far apart in Uganda, and it was even more difficult to access funding than it is now. Josephine and her cofounder started Lumjo with their savings, and decided that they would remain small, grow organically, and serve a niche market. They have developed a solution that works – that helps banks comply with regulations. They have managed to keep their company small but mighty.

Josephine, who is the current chairperson of FITSPA and belongs to various communities of practices of women executives including The Boardroom Africa, emphasized the need for more role models in the fintech industry. Josephine advocated for increased representation of women in leadership roles and the creation of supportive networks.

“There are not enough women founders in the first place. Out of the 210 members of FITSPA, only 15 are female founders. We need to have more women starting, and to do that, we need to have more women in senior leadership in the financial technology sector. Most members of FITSPA women are in middle or junior management, so we need to have more women in technology in general. And I will say that FITSPA women are in far better position than many other women out there, so the gap is enormous,” Josephine said.

"We need to create platforms for women to network and learn from role models," Shamim emphasized, highlighting the importance of mentorship and peer support in building confidence and resilience among women entrepreneurs.

Is gender lens investing working?

While gender lens investing promises a positive impact, strong financial returns for investors, and meaningful economic growth for women, it is still in its nascent stage.

Although well-intentioned, the effectiveness of most financing opportunities for women entrepreneurs is often called into question. These programmes often prioritize training over direct funding, creating a pool of "funding-ready" startups without actual funding.

Stella reflected on her experience: "I've participated in numerous mentorship programs, honed my pitching skills, and built a robust network. Yet, securing women-focused financing still feels like an uphill battle. Sometimes I feel like I am being used as a guinea pig in some of these programmes. They are time-consuming, sometimes not relevant, and often demand the founder's participation. I don’t need to learn accounts if I can hire an accountant, for instance.”

Stella opened up about how she always stands a better chance if she participates in general calls as opposed to women-focused programmes.

“I have applied 17 times for female-focused opportunities, and I have never received a single coin,” Stella pointed out. Edith agreed with Stella and advised female counterparts seeking funding to go all in, just like the men do. “Do not fear to get into spaces where you are competing with men directly,” Edith advised.

Alternative funding ventures for women founders

Amidst these challenges, there's a growing recognition of the need to harness domestic funds and government support to enable women entrepreneurs.

“Many founders are looking to international sources for funding, but there are opportunities to create local funds that resonate with the needs of Ugandan founders,” Josephine observed.

Stella approved, recounting an incident where international funding did not make sense for her.

“I had this Canadian venture capitalist who wanted to give us $500,000 but required us to take on three international staff that needed hefty salaries and had no context of the people we work with. It didn’t make business sense, so I had to forego that money,” Stella says.

“Most of our experiences and realities of our target market do not resonate with the international funders. Most international funders will not understand that we are providing a digital solution in a market where even mobile connectivity access is a challenge, so you can’t rely only on an asset-light solution that they prefer to fund,” Stella says.

Josephine called for initiatives such as creating women-specific funds within organizations like FITSPA and leveraging government grants through agencies like the Ministry of Science, Technology, and Innovation and Uganda Investment Authority as crucial steps towards levelling the playing field.

“We can unlock the power of retirement funds, create women funds, and explore fintech partnerships with traditional funders to make financing accessible for women,” she suggested.

The label of a ‘female founder’

In a space where we need to recognize the unique challenges that women face, understanding the bias that comes with language becomes very important.

The label "woman founder" is a mark that has become universally accepted, though women founders feel that it propagates the existing biases. While some women founders noted that the distinction is necessary to highlight the unique challenges and accomplishments of women in male-dominated industries, others advocate for a more inclusive approach that transcends gender labels.

"I am a founder," Stella accentuated. "Our male counterparts are always referred to as founders, not male founders."

Josephine echoed this sentiment, emphasizing the importance of inclusivity: "While acknowledging the gender disparities in entrepreneurship, we must strive for a more inclusive narrative that celebrates the achievements of all founders, regardless of gender."

“I wish the word ‘female’ before ‘founder’ would drop for sure because I am a cofounder. My husband is a cofounder too, but I think they use the distinction to highlight the unique challenges that women face. When I was a little younger, in my 20s and 30s, I would feel agitated by it. Right now, my focus is for my business to succeed. I don’t care what you call me,” Josephine said.

For Edith, this terminology is pejorative, fostering a sense of segregation rather than inclusion. Ultimately, the entrepreneurs call for the need to highlight the achievements of women, inspire future generations and challenge traditional gender norms.

Call to action

The startup journey is a tough and unpredictable one. The entrepreneurs estimate a 10-year timeframe for break-even. There is a need to address the specific challenges women-led innovators face to foster a truly inclusive ecosystem, unlock the full potential of Uganda’s Innovation ecosystem, and empower all its talented founders, including the inspiring women featured here.

The perspectives of entrepreneurs like Stella Lugalambi, Edith Kutesa, Shamim Nabuuma Kaliisa, and Josephine Olok underscore the gender disparities within Uganda's tech ecosystem despite its growth, revealing a funding gap that disproportionately affects women-led companies. To address this, stakeholders can promote gender lens financing practices, champion tailored mentorship programs, foster collaborative networks, leverage domestic resources, and challenge gender norms, ultimately empowering women entrepreneurs, driving economic growth, and fostering a more inclusive future.

In line with this year’s International Women’s Day call for investment in women to accelerate progress, UNCDF is focused on contributing towards increasing the proportion of women building businesses in the new economy and therefore owning equity in it and having agency over it; and also encouraging innovators to address women’s needs as customers though appropriate, accessible, affordable, and high-quality digital services and products.

This blog complements part 1, accessible here.

About the founders interviewed in this article:

Shamim Nabuuma Kaliisa

Shamim is a Ugandan medical doctor, innovator, social entrepreneur, and the mastermind behind a popular cancer screening app helping thousands of African women detect the disease. She is the founder of several companies including the Chil Artificial Intelligence Lab (Chill AI Lab), a Femtech startup that leverages AI to improve access to reproductive health cancer diagnosis.

Josephine Olok

Josephine is the Director and Cofounder of LumJo Consultants Ltd, a company established to provide consultancy services in computer solutions ranging from hardware, software to internet-based solutions in Uganda. She is also the Chairperson of FITSPA.

Edith Kutesa

Edith is the founder and CEO of M-Cash Uganda. M-Cash is a single cashless mobile financial platform offering a cost-efficient suite of transaction processing, switching and mobile payments.

Stella Lugalambi

Stella is the cofounder of Hamwe East Africa, a company that is creating simple and effective solutions that level the playing field for smallholder farmers, giving them equal access to technologies and providing the capabilities to take advantage of the new mobile economy.