Small and Medium Enterprises (SMEs) and startups in Uganda contribute over 70% of the Gross Domestic Product (GDP) and employ about 80% of the workforce, making them vital to the economy. Yet, they face challenges such as limited access to technology, inadequate infrastructure, access to capital, skilled workforce, and slow adoption of modern tools like Artificial Intelligence (AI).
Although AI is a game changer for enhancing operational efficiency, enabling data-driven decisions, and expanding market reach for SMEs and Startups in Uganda, its adoption remains low due to limited awareness, technical expertise, and concerns about cost. Many SMEs and startups lack the digital literacy needed to integrate AI, preventing them from realizing their full potential. Initial costs and perceived complexity further deter investments, despite the significant benefits AI offers.
AI has the potential to transform SMEs and startup operations by automating tasks like customer service, optimizing inventory through predictive analytics, and improving marketing with data insights. Startups can use AI-driven data analysis to track market trends, understand consumer behavior, and refine strategies. Without AI, SMEs risk falling behind more tech-savvy competitors who can deliver personalized customer experiences and adapt swiftly.
For example, AI-powered content creation, automated social media management, and tailored email campaigns offer cost-effective solutions that maintain an active online presence and engage customers without heavy resource investments. Furthermore, AI can help in resource mobilization by automating the search for grants and drafting proposals, opening new funding opportunities with less effort.
Adopting localized AI tools that address Uganda’s specific challenges, such as language diversity and limited internet, is essential for broader reach and communication. That’s why, Empower Youth in Technology (EYIT) is leading efforts to bridge this gap. By, leveraging the relationships already created with organizations such as GIZ Uganda and Kampala Analytica, EYIT seeks to raise awareness, offer training, and support the use of simple, accessible AI tools tailored for SMEs and startups.
Adopting AI is not just about keeping up with global trends; it’s a strategic move necessary for competitiveness and sustainability. By leveraging AI, SMEs can boost productivity, save costs, and make data-informed decisions. Strategic investment in training and localized solutions can overcome challenges like cost and technical barriers, paving the way for SMEs to thrive.
As Uganda continues to pursue its economic goals, AI adoption in SMEs and startups will be vital for growth and resilience. Integrating AI now ensures these businesses remain competitive and equipped to meet the demands of rapidly evolving markets.
The writer, Tushabe Ronard, is a Mandela Washington Fellow (MWF) and the Founder/Director of EYIT and is undergoing thorough training in the current and future state of generative AI as part of the ESTEEM program at the University of Notre Dame USA.