East African start-ups grapple with a funding drought

Rwanda's start-up ecosystem is gaining traction as an emerging innovation hub, but the road to success is not without its challenges. In a recent interview with CNBC Africa, Tadhim Uwizeye, CEO of Olado Business Group Ltd, shed light on the struggles faced by tech startups in Rwanda, particularly in securing much-needed funding. Uwizeye highlighted the impact of e-commerce platforms in Rwanda, pointing out the significant growth in the number of vendors and users on the Olado platform. He emphasized the positive influence of these platforms on the local market, with thousands of vendors benefiting from the opportunity to expand their businesses through online sales. However, despite this progress, Uwizeye acknowledged that the sector still faces obstacles that prevent it from realizing its full potential. One key issue he identified was the lack of investment opportunities in Rwanda, a challenge exacerbated by the absence of angel investors who understand the local market dynamics. Uwizeye highlighted the crucial role that angel investors play in providing financial support and guidance to start-ups, emphasizing the need for these investors to bridge the funding gap and attract international investment to the region. In comparison to neighboring countries like Kenya, where start-ups struggle with funding shortages, Rwanda faces a similar plight, with limited access to crucial investment opportunities. Uwizeye stressed the importance of fostering a supportive environment for tech start-ups in Rwanda, citing the need for collaborative efforts between entrepreneurs, government, and investors to create a vibrant ecosystem that nurtures innovation and growth. While the infrastructure and policies are in place to support tech start-ups in Rwanda, Uwizeye called on entrepreneurs to seize the opportunities available to them and leverage resources to drive success in the sector. As the conversation concluded, the focus shifted to the future of Rwanda's start-up ecosystem and the steps needed to uplift and empower tech start-ups in the country. Uwizeye expressed optimism about the potential for growth and success in Rwanda's tech sector, emphasizing the role of entrepreneurs in capitalizing on existing resources and working towards a more conducive environment for start-up development.