Uganda is embarking on a significant economic transformation, and it all starts with a fresh look at its core business policies. This initiative involves a comprehensive review of the Micro, Small and Medium Enterprises (MSME) Policy from 2015 and the National Standards & Quality Policy from 2012. The goal? To propel Uganda towards its ambitious economic vision.
This crucial announcement was made during a national stakeholder consultation held at Four Points by Sheraton, Kampala. The event also marked the launch of the Good Governance Guide for Uganda’s National Quality Infrastructure (NQI) institutions.
The Ministry of Trade, Industry and Cooperatives (MTIC) spearheaded this event in collaboration with key partners like the European Union, GAIN, the International Trade Centre, the Kingdom of the Netherlands, and other development actors. This gathering brought together policymakers, private sector representatives, and development partners, all united in shaping Uganda’s economic trajectory for the next decade.
A Decade-Old Framework Gets a Much-Needed Overhaul
The Minister of State for Trade, Hon. Wilson Mbadi, represented by MTIC Under Secretary Deogratius Masagazi, emphasized the critical need for these policy updates. He highlighted Uganda’s vision of achieving a $500 billion economy by 2040 through the Tenfold Growth Strategy. "The backbone of our economy depends on it," he stated, underscoring the importance of MSMEs.
He further elaborated on the vital role of MSMEs, which constitute 98.8% of all enterprises, contribute 75% of the GDP, and provide 77% of formal jobs. He pointed out that these enterprises are often held back by challenges related to productivity, innovation, and certification.
Good Governance Guide: A Boost for Quality Infrastructure
Alongside the policy reviews, Hon. Mbadi launched the Good Governance Guide for Uganda’s Quality Infrastructure Institutions. This guide aims to strengthen integrity, accountability, and performance across standards, metrology, testing, and accreditation systems. "This framework ensures integrity, accountability and high performance—key for competitiveness, consumer protection and industrial transformation," he noted.
Ms. Sarah Kagingo, representing the Private Sector Foundation Uganda (PSFU), stressed the urgency of these reforms, highlighting the hurdles MSMEs face. "MSMEs are Uganda’s economy: 90% of the private sector, 75% of GDP, and over 2.5 million jobs," she stated. She pointed out challenges such as high capital costs, unreliable power supply, expensive data, and delays in certification.
She also mentioned a recent study revealing that manufacturing plants in Uganda operate at only 43% capacity. This led to a call for targeted interventions to boost productivity, with a primary focus on reducing product certification delays.
Development Partners Step Up Support
The European Union’s Ambassador-designate, Frederieke Quispel, reaffirmed the EU’s commitment to supporting Uganda’s enterprise sector. The EU is investing €1.4 billion in Uganda’s private sector through the Team Europe ‘Sustainable Business for Uganda’ initiative. The EU-Uganda trade has nearly tripled since 2019, growing from €500 million to €1.4 billion. She emphasized the importance of a robust standards ecosystem to facilitate export growth.
GAIN Country Director Damali Ssali highlighted the role of innovation and digital transformation in fostering enterprise growth. She emphasized that outdated policies can hinder growth and competitiveness.
Eng. James Kasigwa, the Executive Director of UNBS, stressed that the National Quality Infrastructure is essential for trade. He pointed out that a product from China competes directly with one from Kampala, and the challenge lies in quality, not resources.
Patrick Mugisha, Commissioner for Business Development and Quality Assurance at MTIC, stated that the policy review is a forward-looking redesign, integrating technology, including AI, to make the process more inclusive, especially for Uganda’s tech-savvy youth. He added that the newly launched Good Governance Guidelines will strengthen transparency and trust in the national quality system.
The consultations aim to align the reviewed policies with NDP IV, Vision 2040, and emerging shifts in regional and global trade, including the African Continental Free Trade Area (AfCFTA). The policy revision process will continue through national consultations, technical working groups, and private-sector dialogues in the coming months.
But here's where it gets controversial... Could these policy changes truly unlock the full potential of Uganda's MSMEs? What specific measures do you think would be most effective in boosting productivity and reducing certification delays? Share your thoughts in the comments below!
