By Our Reporter
Research shows that Small and Medium Enterprises (SMEs) are the engine for economic growth across Africa. In Uganda, the SME sector employs over 2.5 million people (90% of the entire private sector) and generates 80% of manufactured output, which contributes 20% of the gross domestic product (GDP).
However, the SME sector continues to grapple with a wide range of challenges including limited access to affordable finance, limited technical and business skills, informality of the sector, among other challenges which have impeded the growth of the sector. According to available statistics from the Ministry of Trade, Industry and Cooperatives, majority of MSMEs (69%) are still in the first 5-10 years of their lives, signifying the high mortality rate of small businesses in Uganda.
In response to the challenges that SMEs in Uganda face particularly limited technical and business skills, Deloitte has developed an affordable subscription-based value proposition designed to meet the unique service needs of Uganda’s SMEs including bookkeeping and accounting, tax compliance, business performance insights and corporate governance.
The value proposition was launched on Thursday at an event held at Sheraton Hotel, and presided over by the Minister of Trade, Industry and Cooperatives Amelia Kyambadde. The event culminated in the signing of a three year Memorandum of Understanding between Deloitte and the Ministry of Trade, Industry and Cooperatives to collaborate on various initiatives in support of the development of the SME sector in Uganda.
The event was also attended by key stakeholders in Uganda’s SME sector including Uganda Revenue Authority (URA), Uganda Registration Services Bureau (URSB), Uganda Investment Authority (UIA), Uganda National Bureau of Standards (UNBS), Financial Sector Deepening Uganda (FSDU), and United States Agency for International Development (USAID), African Development Bank, Uganda Manufacturers Association (UMA), Uganda Small Scale Industries Association (USSIA), Uganda Chamber of Mines and Petroleum (UCMP), Commercial Banks, Mobile Network Operators, Manufacturing Companies, among others.
In addition, Deloitte together with key partners including Uganda Revenue Authority (URA), Uganda Registration Services Bureau (URSB), Uganda Investment Authority (UIA), Uganda National Bureau of Standards (UNBS), Uganda Manufactures Association (UMA), Uganda Small Scale Industries Association (USSIA), Uganda Chamber of Mines and Petroleum (UCMP)offered free advice and guidance to SMEs on various matters ranging from registration of businesses, effective business management, tax compliance, sources of financing to support business growth, among other areas.