Minister Amongi hails MSMEs for supporting Uganda’s development

The Minister for Gender, Labour and Social Development, Betty Amongi has hailed Micro, Small and Medium Enterprises (MSMEs) as big contributors to Uganda’s development.

“Micro, Small and Medium Enterprises are the backbone of Uganda's economy. According to the available statistics, they represent over 80% of the private sector, contributing approximately 20% to our GDP, and employing more than 2.5 million people. These enterprises are crucial for job creation, innovation, reducing poverty, enhancing income distribution, providing the foundation for sustainable economic development and resilience,” Amongi said.

The minister was on Thursday speaking during this year’s  MSMEs Day celebrations at Imperial Royale Hotel, Kampala, organized by SB4U under the  theme, "MSMEs – The Growth Engine for Women and Young People's Entrepreneurship and Resilient Supply Chains.”

Amongi said that that in Uganda 38.4 percent of businesses are owned by women, the second highest proportion in the world behind Botswana which further drives the country’s development.

“ Women entrepreneurs are critical in the Micro, Small and Medium Enterprises sector as they bring unique perspectives, drive innovation, and often focus on community-oriented businesses. For example, Women-owned businesses contribute substantially to household incomes, enabling families to improve their standards of living and invest in education and health.”

“ In addition, women have shown remarkable resilience, often balancing multiple roles while managing their businesses. Their adaptability in the face of challenges, such as the COVID-19 pandemic, has been exemplary.”

She said that with youths accounting for the biggest percentage of Uganda’s population, they are the future of the country and that their involvement in MSMEs is crucial for driving innovation and economic transformation.

“Young entrepreneurs are at the forefront of technological adoption and innovation, creating new products and services that meet contemporary market needs and youth-led enterprises are vital in addressing the high unemployment rate among young people, providing them with meaningful employment and reducing socio-economic disparities.”

Among applauded the Sustainable Business for Uganda(SB4U)  initiative that she said is helping to build resilient supply chains, enhancing business skills for women and youth, and improving market access for Micro, Small and Medium Enterprises.

“This partnership is a testament to the shared commitment between Uganda and the European Union towards achieving sustainable development goals and improving the livelihoods of Ugandans.”

“I thank the European Union and other development partners for supporting and 'collaborating with government of Uganda in efforts geared towards achieving sustainable development through women and youth empowerment. “

The head of cooperation for the European Union delegation in Uganda, Caroline Adriaensen said it is worth noting that over recent years, MSMEs have been accounting for approximately 90 percent of the entire Ugandan private sector, over 80 percent of manufactured output and around 75 percent of the Growth Domestic Product.

“Despite this overwhelming contribution to the Ugandan economy, MSMEs have vulnerabilities leading to over 50 percent failing to reach beyond three years of operation. This failure rate is even higher among the smaller businesses,” Adriaensen said.

She added that MSMEs also play a crucial role in job creation in the country.

“As Team Europe we believe that women and youth entrepreneurs have a strong capacity to innovate in business, in particular to support the green economic transition.”

Adriaensen said through the   Sustainable Business for Uganda(SB4U)  initiative, the European Union is dedicated to supporting women and youth entrepreneurs across Uganda, through the SB4U Team Europe Initiative – a flagship for the EU Global Gateway Strategy.

“Through a current financing of shs549 billion, complemented with additional funding from EU member states, we are dedicated to working hand in hand with the government of Uganda and local partners to create an ecosystem where youth and women can thrive and create sustainable enterprises.”

She said SB4U focuses on skills and attitude, access to finance, governance and accountability, as well as promotion of trade and investment.