GAME CHANGER! Gov’t Moves To Lift Millions Of Small Businesses
Speaking at the UG Catalyst Summit and the United Nations MSMEs Day commemoration held at MoTIV Hub in Bugolobi, Kampala, the Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, described MSMEs as the backbone of Uganda's economy
By Evans Najuna
KAMPALA — The Government of Uganda has intensified efforts to support Micro, Small and Medium Enterprises (MSMEs), urging business owners to formalize their operations in order to access financing, markets and government support programs.
Speaking at the UG Catalyst Summit and the United Nations MSMEs Day commemoration held at MoTIV Hub in Bugolobi, Kampala, the Minister of Trade, Industry and Cooperatives, Hon. Sanjay Tanna, described MSMEs as the backbone of Uganda’s economy.
The event was held under the theme, “Reducing Barriers for MSMEs to Enter the Formal Economy: Formalize to Rise.”
According to Tanna, MSMEs account for about 99 percent of businesses in Uganda, contribute nearly 75 percent of the country’s Gross Domestic Product (GDP), employ more than three million Ugandans and generate over 80 percent of domestic revenue.
“MSMEs and startups are critical to Uganda’s economic transformation. Their growth and sustainability remain a top government priority,” Tanna said.
The Minister highlighted several government initiatives aimed at encouraging business formalization, including the Taxpayer Register Expansion Programme (TREP), the Electronic Fiscal Receipting and Invoicing System (EFRIS), online business registration, instant Tax Identification Number (TIN) issuance and One-Stop Business Centres established by the Uganda Registration Services Bureau (URSB).
He also pointed to wealth creation and financing initiatives such as the Parish Development Model (PDM), Emyooga, Business Development Services and the Small Business Fund, which has disbursed over Shs200 billion to support small enterprises across the country.
Tanna revealed that Uganda’s startup ecosystem is rapidly growing, with Kampala-based startups attracting approximately USD 30 million in investment in 2025, a significant increase from USD 4 million recorded in 2024.
To further support innovation and entrepreneurship, the government has introduced tax incentives, including a three-year income tax holiday for qualifying startups and SMEs under the revised Income Tax Act 2025.
The Minister further disclosed that the Ministry is finalizing the Startup Development Policy and the Business Development Standards Policy, both aimed at strengthening enterprise development and competitiveness.
Despite challenges such as limited access to affordable credit, market constraints, climate change impacts and low technology adoption, Tanna said government remains committed to transforming MSMEs from subsistence ventures into competitive, export-oriented businesses.
He reaffirmed government’s commitment to boosting productivity, expanding value addition, increasing exports and creating more jobs through strategic investments in industrial parks, free zones and business incubation centres.
The UG Catalyst Summit also served as a platform for discussions on innovation, technology transfer and entrepreneurship, aligned with Uganda’s Fourth National Development Plan (NDP IV) and the country’s Tenfold Growth Strategy.
The Minister commended development partners, government agencies, MoTIV Uganda and other stakeholders for supporting MSMEs and pledged continued collaboration to accelerate economic growth and create sustainable business opportunities for Ugandans.
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