The Government of Uganda has assured the business community that it’s commitment to strengthening Micro, Small and Medium Enterprises (MSMEs) as a cornerstone of the country’s economic transformation, urging businesses to formalize in order to unlock growth opportunities and enhance competitiveness.
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This was disclosed by the Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna,⁵ during the opening ceremony of the two-day of UG Catalyst Summit and the commemoration of the United Nations MSMEs Day.
The two day event held at MoTIV Hub in Bugolobi, Kampala has attracted over two hundred participants and is being held under the global theme “Reducing barriers for MSMEs to enter the formal economy: Formalize to rise,”
MSMEs account for approximately 99 percent of all businesses, contribute about 75 percent of the country’s Gross Domestic Product (GDP), and employ over three million people.
Key participants are comprised of policymakers, private sector players, development partners, academia, and entrepreneurs to explore solutions to challenges affecting small businesses.
The Minister is Calling on the public to Formalize Small Businesses to be able to access cheap credit to grow their businesses.
The Minister acknowledged persistent challenges facing the sector, including limited access to affordable financing, restricted market access, low uptake of digital technologies, climate-related disruptions, and the complexities associated with meeting international quality standards.
Despite these hurdles, he commended Ugandan entrepreneurs for their resilience and innovation, pledging continued government support to transition enterprises from informal and subsistence operations into competitive, export-oriented businesses.
Tanna outlined several government interventions aimed at promoting business formalization and growth. These include the Taxpayer Register Expansion Programme (TREP), the Electronic Fiscal Receipting and Invoicing System (EFRIS), and the establishment of physical and digital One-Stop Business Centres by the Uganda Registration Services Bureau (URSB), which have simplified business registration and tax compliance processes.
Additional initiatives highlighted include instant Tax Identification Number (TIN) issuance, online trade licensing, and targeted financing programs such as the Parish Development Model (PDM) and the Emyooga initiative, which support grassroots wealth creation through savings and credit cooperatives.
The Minister also pointed to the Small Business Fund, which has disbursed over Shs 200 billion to support enterprises affected by the COVID-19 pandemic, with a focus on women- and youth-led businesses.
On the innovation front, Uganda’s startup ecosystem is experiencing notable growth. Kampala-based startups attracted approximately USD 30 million in investment in 2025, a significant increase from USD 4 million in 2024. To further stimulate this growth, the government has introduced tax incentives, including a three-year income tax holiday for qualifying startups under the revised Income Tax Act 2025.
Tanna revealed that the Ministry is finalizing key policy frameworks, including the Startup Development Policy and the Business Development Standards Policy, aimed at enhancing the regulatory and operational environment for emerging enterprises.
The UG Catalyst Summit also serves as a platform to align enterprise development with Uganda’s Fourth National Development Plan (NDP IV) and the broader Tenfold Growth Strategy, focusing on priority sectors such as agro-industrialization, tourism, mineral development, and science, technology, and innovation.
“These efforts are designed to strengthen coordination among institutions, promote technology transfer, and support value addition across key sectors of the economy,” he noted.
The Minister concluded by reaffirming government’s dedication to fostering an inclusive and enabling environment for MSMEs through strategic investments in infrastructure, industrial parks, free zones, and business incubation.
“As government, we remain committed to boosting productivity, expanding market access, and creating jobs. MSMEs will continue to play a central role in driving Uganda towards a modern and prosperous economy,” he said.
The two-day summit is expected to generate actionable insights and partnerships aimed at accelerating MSME growth and formalization across the country
