KAMPALA, Uganda – The Government of Uganda has reaffirmed its commitment to supporting Micro, Small and Medium Enterprises (MSMEs) as key drivers of economic transformation, job creation, and export growth during the inaugural Uganda Catalyst Summit and the commemoration of the United Nations MSME Day held at MoTIV Hub in Bugolobi, Kampala.
Speaking at the two-day summit, the Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, underscored the critical role MSMEs play in Uganda’s economy, noting that they account for approximately 99 percent of businesses, contribute about 75 percent of the country’s Gross Domestic Product (GDP), employ more than three million people, and generate over 80 percent of domestic revenue.
The summit, held under the UN MSME Day theme, “Reducing Barriers for MSMEs to Enter the Formal Economy: Formalise to Rise,” brought together government agencies, development partners, entrepreneurs, innovators, and private-sector players to discuss strategies for strengthening enterprise development and accelerating Uganda’s economic growth.
“MSMEs are the backbone of our economy. Their growth and survival are crucial to Uganda’s development agenda,” Hon. Tanna said. “The government remains committed to transitioning businesses from subsistence operations into competitive, innovative, and export-oriented enterprises.”
The minister highlighted several government interventions aimed at encouraging business formalisation, including the Taxpayer Register Expansion Programme (TREP), the Electronic Fiscal Receipting and Invoicing System (EFRIS), one-stop business registration centres operated by the Uganda Registration Services Bureau (URSB), instant Tax Identification Number (TIN) registration, and online trade licensing systems.
He also pointed to targeted financing and wealth-creation initiatives such as the Parish Development Model (PDM), the Emyooga Programme, and the Small Business Fund, which has injected more than UGX 200 billion into supporting small enterprises, particularly those owned by women and youth.
Despite persistent challenges such as limited access to affordable financing, restricted market opportunities, low adoption of digital technologies, climate-related disruptions, and difficulties in meeting international quality standards, Hon. Tanna said Ugandan entrepreneurs have demonstrated remarkable resilience.
The minister further revealed that the government is finalising several policy frameworks to strengthen the business environment, including the Startup Development Policy and the Business Development Standards Policy. He noted that Uganda’s startup ecosystem is gaining momentum, with Kampala-based startups attracting approximately USD 30 million in investment in 2025, up from USD 4 million in 2024.
“Investors are increasingly expressing interest in Uganda’s startups and SMEs. Through tax incentives, capacity-building programmes, and policy reforms, we are creating an environment that enables innovation and enterprise growth,” he said.
Under the revised Income Tax Act 2025, qualifying startups and SMEs are entitled to a three-year income tax holiday aimed at easing cash-flow pressures and supporting early-stage business development.
Welcoming participants to the summit, Innovation Village Hub Executive Director Rita Ngenzi described the Uganda Catalyst Summit as a platform designed to bridge the gap between national development priorities and enterprise-led solutions.
“Over the last decade, we have worked alongside more than 300,000 entrepreneurs and innovators across Uganda. We have learned that talent alone is not enough. Progress requires enabling policies, supportive institutions, access to opportunities, and strong partnerships,” Ngenzi said.
She noted that Uganda’s Fourth National Development Plan (NDP IV) and the Tenfold Growth Strategy present an ambitious vision anchored on key sectors, including agro-industrialisation, tourism, mineral development, manufacturing, and science, technology, and innovation.
According to Ngenzi, the summit seeks to foster collaboration among government, academia, development partners, and the private sector to ensure that enterprises can effectively contribute to national economic transformation.
“The future we are building will not be achieved by government alone, business alone, or entrepreneurs alone. It will be built through deliberate collaboration among all stakeholders,” she said.
The Uganda Catalyst Summit serves as a platform for dialogue, innovation, and partnership-building, with stakeholders expected to identify practical actions that can accelerate enterprise growth, competitiveness, and inclusive prosperity across the country.
Government officials pledged to continue strengthening value addition, market access, infrastructure development, industrial parks, free zones, and business incubation initiatives as part of broader efforts to create jobs, increase exports, and transform Uganda into a modern and prosperous nation.
