The Ministry of Trade, Industry and Cooperatives and Financial Sector Deepening Uganda have signed a Memorandum of understanding to facilitate the growth of the Micro Small and Medium Enterprise (MSME).
This Memorandum of Understanding aims to strengthen the Micro Small and Medium Enterprise (MSME) sector in Uganda by collaborating with the Ministry to increase capacity on an optimal legal framework and best practices in the MSME sector. The minister of trade, Industry and Cooperatives Amelia Kyambadde signed on behalf of the ministry and for the Financial Sector Deepening Uganda its executive director Jacquelin Musitwa signed.
The partnership is also geared towards working with the Ministry of trade to improve the business environment for MSMEs by facilitating and promoting increased access and usage of quality and affordable financial services.
The Executive Director Financial Sector Deepening Uganda Jacquelin Musitwa said that despite of the many challenges Micro Small and Medium Enterprise are up against, these household enterprises collectively employ six (6) out of every 10 Ugandans of employable age which makes these small enterprises a critical pillar in Uganda’s quest to achieve a middle-income status by 2020.
Mrs.Musitwa noted that although these small enterprises account for only 20% of Uganda’s Gross Domestic Product, they have the potential to evolve into the big giant companies of tomorrow if provided with the right support and business environment.
She said that the Financial Sector Deepening Uganda has entered this partnership for two years to and contribute to the growth of the small enterprises that will not only employ more Ugandans but also offer a bigger significant contribution to Uganda’s economic growth and development by promoting competition.
She said that it important to leverage mobile technology that requires minimal infrastructure and has a wider penetration among the ordinary Ugandans to provide services such as savings, debt and insurance. Access to formal financial services and their use to reduce vulnerability is a power tool in poverty reduction.
On her behalf the minister of Trade, industry and cooperatives Amelia Kyambadde said that her ministry is working hard to formalize the Micro Small and Medium Enterprise since Uganda’s economy is premised on their in put to ensure that there is fair competition and consumer protection.