Key building blocks for SME support at Uganda Investment Authority.

 Key building blocks for SME support at Uganda Investment Authority.

First; a conducive business environment, i.e. investment climate which is the foundation for Uganda Investment Authority (UIA) support to SMEs. UIA and other stakeholders analyze regulations that apply to an economy’s businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business. By focusing on the regulatory problems that impact SMEs most (such as licensing, registration and taxation) Uganda Investment Authority and its partners can create entry points for the other building blocks for the support of SMEs.

Second; limited management and operational capacity further slows the performance and growth potential of SMEs. In response, Uganda Investment Authority helps to provide SMEs with affordable access to localized and customized business management information, Business development services, and training. In partnership with other stakeholders, the SME division continues to roll-out capacity building initiatives to enhance SME competitiveness. Capacity building focuses on providing the tools and skills SMEs need to become better suppliers, Buyers, distributors and clients.

Through support from United Nations Industrial Development organization (UNIDO), the SME Division is implementing a Subcontracting Partnership Exchange program that creates linkages between SMEs and large businesses. These linkages create powerful incentives for SMEs to build managerial and operational capacity within their own operations. By accessing new markets more effectively, SMEs create opportunities for long-term financial sustainability which can lead to increased job creation.

Third; Access to finance is a serious challenge for many SMEs. Uganda Investment authority continues to work in collaboration with local financial institutions and intermediaries that enable SMEs to grow their businesses with affordable and tailored credit facilities. For example, working jointly with financial and other development partners to provide products and services to the untapped SME segment.

We are confident that by bringing  the above solutions together in a coordinated fashion, Uganda Investment Authority  through the SME Division will be playing an important role in enhancing SME competitiveness in Uganda and  the East African region .

Objectives of the Division.

  1. To promote and facilitate SME and their activities with strong focus on local &/ or foreign joint ventures.
  2. To nature SMEs.
  3. To provide business related information to SMEs.
  4. To promote publicity and advocacy role for SMEs.
  5. To promote institutional linkages.
  6. To coordinate national SME interventions.
  7. To increase the number of licensed SMEs.
  8. To constantly seek for Practical innovative solutions.
  9. To provide service land to SMEs.

Who are we focusing on?

  1. Registered/non registered local & Joint venture SMEs:
    1. Employing a minimum of 5 people
    2. Minimum Capital base of Uganda shillings 120Millions (US$50,000)
    3. Minimum Turnover of Uganda Shillings 120Millions (US$ 50,000)
    4. With or without Uganda investment authority investment License
    5. A company with innovative or new business ideas  or technology
  2. New SME investors in Information communication technology, Food production, Oil & Gas and other sector.

 

 

Documented challenges of SMEs
At a micro level Uganda investment Authority works directly with SMEs and other stakeholders to address some the of challenges listed below;

  1. Lack of entrepreneurial skills
  2. Access to machinery
  3. Access to finance
  4. Access to markets
  5. Lack of business records
  6. Access to business development services
  7. Low quality of products and services
  8. Deficient corporate governance
  9. Short term business outlook
  10. A culture that disrespects business contracts

The SME business owners are encouraged to contact the UIA SME division for advise and joint partnerships to resolve the above mentioned challenges.

SME Division Contact details
Mr. Albert Ouma
Director

Ms Yvonne Munabi
Investment Executive

Mr.  Stephen Byaruhanga
SPX Engineering Specialist

Tel: +256 414 301182/35/38
email: sme-div@ugandainvest.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

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