The European Union has pledged stronger support toward Uganda’s private sector and export competitiveness, announcing a €1.4 billion (approx. Shs 5.9 trillion) investment under the Sustainable Business for Uganda programme.
Speaking during the National Catalytic Stakeholder Consultation on the Review of the MSME Policy (2015) and the National Standards and Quality Policy, Michelle Walsh, Team Lead for Green Transition and Private Sector Delegation at the EU Mission in Uganda, said the EU remains a committed partner in strengthening Uganda’s trade capacity, improving standards and creating decent jobs.
Walsh said the Ministry of Trade, Industry and Cooperatives continues to be a key partner in efforts to promote entrepreneurship, employment opportunities and deeper trade relations between Uganda and the European Union.
She highlighted key focus areas under the Team Europe initiative, which include access to finance, expansion of productive infrastructure and energy access, strengthening skills and creation of decent jobs particularly for young people and in the green sector, improving trade and sanitary and phyto-sanitary standards, and enhancing governance and accountability.
Walsh noted that many of the challenges highlighted by Uganda’s private sector including limited financing, unreliable electricity, certification delays, high data costs, integration of artificial intelligence, and global trade disruptions are being directly addressed through EU-supported interventions.
Under access to finance, she pointed to several facilities supporting SMEs such as the Uganda Green Enterprise Finance Accelerator (UGEFA) that provides loans to green businesses in clean energy, waste management, mobility, tourism and manufacturing, the STAR facility which finances agri-business SMEs in partnership with PSFU, the Yield Fund which offers equity and loans to growing SMEs, and continued support to the Agricultural Business Initiative (aBi) to strengthen production, processing and trade.
Walsh also noted that the EU is investing heavily in productive infrastructure to enable business growth. This includes rehabilitation of hydropower plants, last-mile electrification, expansion and improvement of electricity transmission lines, support to renewable energy providers and the adoption of efficient energy-use technologies among SMEs.
On skills and employment, Walsh emphasised the importance of decent work, saying the EU has partnered with Belgium and other Team Europe members to expand technical and vocational education, business incubation, entrepreneurship training and financial literacy, with a particular focus on young people and green jobs.
She added that the EU is also supporting Uganda to strengthen compliance with international trade standards, including sanitary and phytosanitary measures, to boost exports to Europe and other global markets.
Walsh said the EU’s collaboration with Uganda extends to promoting human rights due diligence in business, especially in the agriculture sector.
She reaffirmed the EU’s commitment to working with the government, private sector, development partners and MSMEs to drive sustainable industrialisation and improve Uganda’s competitiveness.
“The European Union is very pleased to partner with Uganda to promote competitiveness in international markets and expand opportunities for entrepreneurs,” she said.
She called the consultation process an essential step toward designing policies that unlock the full potential of MSMEs.