The Federation of Small and Medium Enterprise (FSMEs) has asked Small and Medium sized Enterprises(SMEs) to take up insurance cover against terrorism amidst the growing threat of terror attacks in the country.
The advice follows two explosions that took place in Kampala last week where 7 people were killed and over 30 people injured, leaving business in the affected places at risk.
Speaking to journalists yesterday in Kampala, John Walugembe, the FSMEs executive director, said such terrorist attacks affect the economy that has been on the road to recovery from the negative impacts of Covid-19.
He explained that it has increased uncertainty, fear and nervousness which scares away potential investors, adding that this is made worse by terror alerts and travel advisories by western governments.
“If you can take up terrorism cover, please take it out so that that in case your business is targeted you can be paid back. We want to encourage all small and medium sized enterprises to take out insurance cover, yes we are talking about the government putting in place the funds but the government cannot do everything .A business owner please take out insurance for your business against terrorism and against other things like fires, theft among other,” he said.
Walugembe asked insurance companies to be speedy in ensuring that they pay business owners that have been genuinely affected by some of these unfortunate events and refrain from coming up with unnecessary excuses.
Small and medium businesses play an important role in fostering innovation, wealth and creating jobs. At least more than 2.5 million Ugandans are employed by small and medium businesses, accounting for approximately 90 per cent of the entire private sector.