SME policy dogged by government formalities

The policy, if approved, will streamline coordination among government ministries and departments dealing with SMEs issues.

Uganda’s investment body has completed the Micro, Small and Medium Enterprise policy, although it awaits approval.
The formulation of the SMEs policy started in mid-2000 but it keeps shifting between the Ministry of Finance shelf and the cabinet trolleys.
“We have finished the SMEs draft policy and handed it over to the Ministry of Finance who will proceed with the other processes to see it approved by Parliament,” Mr Albert Ouma, the Uganda Investment Authority (UIA) director for SMEs said.

According to UIA data, SMEs sector employing more than 2.5 million people provides the biggest chunk of employment. It is also estimated to grow at an average of 26 per cent annually.
Other regional countries have functioning SME policies, explaining why their SMEs segment are more productive.

“... if we don’t have one, the more organised SMEs from the region will pitch camp here at the expense of our own SMEs,” said Mr Ouma in a media dialogue on Tuesday.

Private Sector FoundationUganda executive director, Mr Gideon Badagawa, said: “We submitted our position on the matter about seven years ago. But we are not sure why the policy is not yet approved.”

iladu@ug.nationmedia.com