Gulu University Vice Chancellor Professor George Ladaah Openjuru has called for tax relief and a more supportive regulatory environment for young entrepreneurs, warning that excessive taxation and product-certification requirements could stifle innovation.
Openjuru said many university graduates leave with marketable products but struggle to commercialise them because they cannot afford the financial and regulatory requirements needed to enter the market.
He wants government to consider tax holidays and other incentives for start-ups, arguing that young businesses should be given room to grow before facing the same tax pressures as established enterprises.
The Uganda Revenue Authority currently operates a presumptive tax regime for qualifying small businesses with annual sales above Shs10 million and up to Shs150 million.
Follow us on WhatsApp | LinkedIn for the latest headlines
The Uganda National Bureau of Standards, meanwhile, says product certification is intended to guarantee quality, safety and reliability. Its current fee policy lists an annual fee of Shs500,000 for certification of a product and brand by a micro or small enterprise, while laboratory testing is charged separately.
Openjuru said regulation should help innovators comply with standards rather than become a barrier to commercialisation.
"We need an environment where young innovators are supported to bring their ideas to the market. If the cost of taxation, certification and other regulatory requirements becomes too high, many promising innovations may never reach consumers," Openjuru said.
He was speaking during the signing of a five-year partnership between Gulu University and Epiflex Agrovet Solutions Limited.
The partnership will focus on agricultural research and innovation, student training, industrial attachment, product development, community outreach and commercialisation.
Epiflex said the collaboration would equip students with practical skills and help farmers improve production.
The Acholi Agro-input Dealers Association said the partnership could also help farmers access information and markets, including in South Sudan.
Openjuru said the ultimate measure of Uganda's investment in university innovation should be whether ideas can be transformed into businesses that create jobs, expand production and eventually generate more tax revenue for the country.
"If we can help young people turn their innovations into businesses, they will create employment, increase production and, in the long run, contribute more to the tax base," he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
