NSSF Hi-Innovator program fuels Ugandan business growth, fund membership

KAMPALA, Uganda — The National Social Security Fund (NSSF) Hi-Innovator Program is proving to be a significant engine for business growth and a key driver of economic impact in Uganda, far exceeding its initial job creation goals and directly boosting the NSSF’s membership and remittances. The program, a collaboration with the Mastercard Foundation, has generated over 202,000 jobs, shattering its 132,000 target, and is now set for a major expansion aiming to fund an additional 1,000 startups by 2030.

“The Hi-Innovator program was born from a clear mission: to create job opportunities for young Ugandans and support them in establishing and growing their businesses, particularly those struggling in their early stages,” said Patrick Ayota, NSSF Uganda Managing Director. Ayota highlighted the program’s dual benefit: empowering entrepreneurs and strengthening the NSSF by converting informal workers into formal contributors. He noted that an independent validation by Ipsos, confirmed by lead evaluator Lindah Nsabagwa, underscored the program’s impressive achievements.

Since its 2020 launch, the program has funded 438 businesses, now demonstrating significant growth. Ayota emphasized the “true beauty” of the program as a testament to homegrown solutions. This initiative aligns with NSSF’s strategic goal of growing its fund membership, as the young contributors from these businesses have already injected approximately UGX 1.7 billion (about $460,000) into the fund through their savings.

Strategic Expansion and Ecosystem Building

Building on this success, NSSF Uganda is committing to extend the Hi-Innovator program until 2030. This expansion reflects a long-term vision to foster a robust entrepreneurial ecosystem. NSSF has established a network of “support hubs,” led by Outbox, the program’s lead implementing partner, which provide essential advisory and practical assistance to participating businesses.

Looking ahead, NSSF plans to create a dedicated fund for Hi-Innovator businesses in its next phase. This fund will bring together various funders, including banks and other foundations, enabling businesses that initially received, for example, $20,000, to now access up to $100,000 as they scale up.

“This approach allows us to truly grow together with these businesses,” Ayota explained. “Our aim over the next 10 years is to see most of them become sustainable and self-sufficient entities.”

The Hi-Innovator program aligns strategically with the Mastercard Foundation’s “Young Africa Works” strategy, which aims to enable 30 million young people, particularly young women, to access dignified and fulfilling work by 2030. Meralyn Mungereza, Country Program Head at Mastercard Foundation, emphasized this core mission: “Are young people truly equipped — with the skills and tools — for dignified, fulfilling work? That’s been our core mission at @MastercardFdn while supporting the #NSSFHiInnovator.”

The program’s impact extends across sectors. Businesses supported directly created 8,508 new jobs, with 90% (7,687) for youth and 57% (4,887) for young women. Agriculture and manufacturing emerged as leading sectors in job creation, contributing significantly to both youth and female youth employment. Seed-funded businesses proved particularly efficient, averaging seven jobs per business compared to 5.8 for supported businesses. Learners with businesses generated an additional 15,076 jobs, with 91% for youth and 62% for women.

Richard Zulu, Outbox’s Team Principal and CEO, highlighted the crucial role of technical support and long-term partnerships in the program’s success. Outbox collaborates with 12 other Entrepreneurship Support Organizations (ESOs) to deliver a holistic support system, addressing challenges like access to finance and market penetration.

“Our collective work as ESOs is to extend vital technical support to entrepreneurs as they develop and scale,” Zulu said. Outbox signs five-year contracts with businesses, ensuring sustained investment and growth for promising Ugandan enterprises.