Government has launched a simplified E-Accounting Tool aimed at transforming small informal enterprises into compliant and high-growth medium-sized businesses, in a move expected to strengthen financial management, improve tax compliance, and accelerate economic growth.
The digital platform was officially launched on Thursday by the Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, who described the initiative as a critical step towards formalising Uganda’s vast informal sector.
Developed by the United Nations Conference on Trade and Development (UNCTAD) under the Informality Management for Compliance and Revenue Mobilisation (IMCORE) Programme, the tool is designed to support small businesses with proper record keeping, reporting, and financial management.
Speaking at the launch, Ggoobi said small and medium enterprises remain central to Uganda’s economy, contributing significantly to employment creation and household incomes.
He noted that Uganda’s informal sector comprises more than 1.8 million micro, small, and medium enterprises, most of which are operated by women, youth, and refugees.
According to Ggoobi, the sector contributes 54.5 percent of Uganda’s Gross Domestic Product (GDP) and accounts for 92 percent of employment nationwide.
Despite its contribution, he said weak financial management continues to limit the growth and formalisation of many enterprises.
“Without proper records, businesses cannot assess performance, financial institutions cannot trust them, and tax compliance remains inconsistent,” Ggoobi said.
He added that addressing these challenges is essential to achieving the government’s Ten-Fold Growth Strategy aimed at expanding Uganda’s economy.
Ggoobi further described the E-Accounting Tool as a single-window solution capable of supporting both legal and fiscal formalisation for small businesses.
During the official handover of the platform to the Ministry of Finance, Planning and Economic Development following the pilot testing phase, Elena Botvina, Economic Affairs Officer in the Division on Investment and Enterprise at UNCTAD, said the platform is designed to be accessible, convenient, and affordable for small enterprises.
She explained that the tool supports better cash management, expense tracking, reporting, and revenue growth for small businesses.
“The platform is simple to use and helps enterprises improve financial discipline and business management,” Botvina noted.
During the pilot phase, 30 informal enterprises within Kampala received direct support, while more than 490 SMEs tested the tool and expressed appreciation for its usefulness.
According to officials, at least 241 enterprises have already registered and created accounts on the platform.
Government says the E-Accounting Tool is expected to improve financial inclusion, enhance compliance, and support the growth of Uganda’s small businesses into more sustainable and competitive enterprises.
The initiative also aligns with broader government efforts to expand the tax base, strengthen domestic revenue mobilisation, and integrate more businesses into the formal economy.
