Many Ugandan fintech founders spend more time writing grant proposals than building products or attracting paying customers. In a challenging startup ecosystem where donor funding dominates and local investment is limited, these entrepreneurs become what insiders call “grantpreneurs” prioritizing grants over real market traction.
This phenomenon distorts innovation, pushing founders to constantly retool their business plans around shifting donor trends whether that’s artificial intelligence, climate resilience, or financial inclusion. As a result, many fintechs lose focus on genuine customer needs and long-term sustainability.
Experts argue this trend highlights major gaps in Uganda’s financial startup ecosystem. While fintech talent is plentiful, there’s less support for turning innovation into scalable, revenue-generating businesses. Angels and venture capital are still sparse, making reliance on grants almost inevitable.
Some companies, however, have managed to break free. Agent-banking pioneer ABC is one success story. What began as a grant-funded project evolved into a full-fledged business by focusing on real customer problems and demonstrating unit economics that investors understood and supported.
But challenges remain. Many startups still design micro‑products tiny loans or microsavings that struggle to scale. Without market size or significant transaction volume, they remain grant-dependent. At the same time, donor funding pulls startups toward niche, highly-funded themes instead of true product-market fit.
Industry insiders propose a shift. Instead of chasing grants, fintechs should build digital platforms that facilitate real economic activity connecting producers and consumers, reducing information gaps, and enabling larger, sustainable markets. They say real value will come from solving genuine financial pain points, not just fitting donor agendas.
To support this shift, stronger policy and better funding structures are needed. Uganda’s planned Startup Act, for example, could provide the framework to attract patient capital and reduce reliance on short-term grants.
Ultimately, the path forward for Uganda’s fintech sector lies not in being grant-ready but in being market-ready. Only then can it unlock its full potential.