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Govt can nolonger afford to throw around money - Ggoobi
Mr Ggoobi (R), chats with Mr Ocici during the workshop in Kampala recently. PHOTO |COURTESY
What you need to know:
- Mr Ggoobi also noted that Business Development Services will seek to deal with business informality that continues to be a challenge to government.
The Ministry of Finance Permanent Secretary, Ramathan Ggoobi has said government can nolonger afford to throw around money to business that have no ability to build sustainable enterprises.
Speaking at a stakeholders’ validation workshop on the draft National Business Development Services Framework, Mr Ggoobi said that whereas government had over the years offered a number of businesses money, many have failed to become profitable.
“I know we always want to talk about money as our biggest challenge. But many people who have got money … or those that government has supported have failed to turn that money into successful businesses,” he said, noting that, through the National Business Development Services Framework, government will go beyond getting money and throwing it to businesses in search of profits.
Under Business Development Services, government, in addition to monetary support, will seek to offer businesses training, technical and marketing assistance, skilling, improved production technologies and related services to help them build resilience.
Mr Ggoobi also noted that Business Development Services will seek to deal with business informality that continues to be a challenge to government.
“Informality is in our DNA. We always want to do things informally . .. so, this framework wants to treat informality,” he said, noting that government will also seek to deal with other impediments that have slowed private sector growth.
The framework, developed by Enterprise Uganda, seeks to extend non-financial services and products to entrepreneurs to address growth and survival constraints.
The private sector, according to Enterprise Uganda, generates 77 percent of formal sector jobs, contributes 80 percent of gross domestic product and funds about 60 percent of all investments, but remains weak and uncompetitive to drive desired economic.
Speaking on the side lines of the workshop, Mr Charles Ocici, the Enterprise Uganda executive director, said that whereas Business Development Services are crucial in enterprise survival, growth and competitiveness, there is currently no clear framework to guide interventions.
Therefore, he said, delivery of such services has remained uncoordinated and fragmented thus risking duplication of government services.
“The framework is envisioned to help in streamlining and mainstreaming Business Development Services,” he said.
