Finance Minister Henry Musasizi has challenged businesses to use government financing programmes to grow into profitable, competitive and export-oriented enterprises as Uganda pursues its ambition of building a $500 billion economy by 2040.
Speaking at the 17th National Competitiveness Forum at Serena Hotel in Kampala on Friday, Minister Musasizi said government’s wealth creation and affordable financing initiatives should move beyond supporting individual beneficiaries to building sustainable businesses capable of competing in regional and international markets.
The forum, held under the theme, “From Funds to Firms: Turning GoU Wealth Creation Initiatives into Competitive Enterprises for Uganda’s US$500 Billion Economy,” was organised as part of the ongoing consultations for the 2027/28 financial year budget.
“The proposals arising from this Forum will inform budget prioritisation going forward,” Minister Musasizi said.
He said Uganda needs to do things differently under the Fourth National Development Plan and the Tenfold Growth Strategy by sustaining annual economic growth of about eight per cent over the medium term, increasing productivity, formalising businesses, creating productive jobs and improving household incomes.
“The challenge we must address going forward is how to significantly increase productivity,” he said, adding that higher productivity is essential for sustaining economic growth and creating productive employment.
Minister Musasizi said government has invested heavily in financing programmes intended to reduce risks for private investors and improve access to affordable capital.
By June, government had disbursed Shs4.4 trillion through the Parish Development Model, about Shs760 billion under Emyooga and Shs1.35 trillion through the Agricultural Credit Facility, which has supported about 14,000 projects and beneficiaries.
Uganda Development Bank has also been capitalised to Shs1.6 trillion, while the Small Business Fund has a capitalisation of Shs200 billion.
The $217 million GROW Project supports women-led enterprises, while Shs176 billion has been provided to support large-scale commercial farmers.
“Government is resolute to support business growth and transformation to large and profitable firms, with a strategic focus on export-oriented enterprises,” Minister Musasizi said.
He urged the private sector to strengthen partnerships, adopt technology, add value to products, improve storage and logistics, comply with quality standards and access export financing.
He also encouraged businesses to exploit opportunities presented by regional and continental markets under the East African Community, Common Market for Eastern and Southern Africa and African Continental Free Trade Area.
From beneficiaries to firms
State Minister for Privatisation and Investment Aminah Mukalazi said government should shift its focus from counting beneficiaries of wealth creation programmes to measuring the number of sustainable enterprises created, jobs generated and products exported.
“We must now become just as good at building firms,” Mukalazi said.
She said much of the government support still ends up in small and scattered economic activities, which limits the ability of beneficiaries to achieve economies of scale and compete in bigger markets.
Mukalazi said Uganda’s $500 billion economy target should be built through millions of households participating in organised value chains instead of producing in isolation.
She proposed organising household enterprises into clusters linked to anchor companies, aggregators, processors and exporters to give producers access to reliable markets, quality standards and predictable prices.
“Competitiveness is not decided in a room. It is decided at the counter and on a supermarket shelf,” she said, emphasising the importance of certification, packaging, traceability and branding.
Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi called for stronger aggregation of Uganda’s fragmented production to enable businesses to increase their scale, meet international standards and access export markets.
Ggoobi said Uganda’s exports had increased by about 229 per cent over the past four years, from $5.6 billion in June 2022 to $18.4 billion.
However, he said many enterprises and farms were still operating below their potential because of fragmented supply chains, post-harvest losses, limited value addition and high working-capital costs.
“We are losing up to 40 per cent of what we harvest,” Ggoobi said.
