UGANDA’S ENTREPRENEURSHIP

DEVELOPMENT ENVIRONMENT

2017
 Global Framework
• United Nations Conference on Trade and
Development (UNCTAD)- provides for:
• Formulating National entrepreneurship
strategy
• Optimizing the regulatory framework
• Enhancing entrepreneurship education and
skills development
 Global framework
• Facilitating Technology exchange and
innovation
• Improving Access to finance
• Promoting awareness and networking
 Uganda Policy Framework

VISION
2040

NDP II

Skilling Youth PSFU

PPP MSME BUBU
Ug Fund Devt Str
 Vision 2040

• Provides paths and strategies to operationalize

Uganda’s Vision statement
• “A Transformed Ugandan Society from a
Peasant to a Modern and Prosperous Country
within 30 years” as approved by Cabinet in
2007.
 Some planned core projects

• A Hi-tech ICT city and associated ICT infrastructure;

• Large irrigation schemes in different parts of the country;
• Phosphate industry in Tororo;
• Iron ore industry in Muko, Kabale;
• Five regional cities ( Gulu, Mbale, Kampala, Mbarara, and Arua) and
five strategic cities ( Hoima, Nakasongola, Fortportal, Moroto, and
Jinja);
• Four international airports;
• A standard gauge railway network with high speed trains;
• Oil Refinery and associated pipeline infrastructure;
• Multi-lane paved national road net work
 NDP II
• Second National Development Plan (2015/16-
2019/20)
• Theme: “Strengthening Uganda’s
Competitiveness for Sustainable Wealth
Creation, Employment and Inclusive Growth”
•
 Targeted sectors for Wealth creation and
employment
• Agriculture
• Tourism
• Minerals, oil and gas
• Environment and natural resources
• Trade, industry and cooperatives
• Science technology and Innovation
 Targeted sectors for Competitiveness

• Infrastructure development
• Human Capital development
• Governance

• Enshrined in inclusive growth – social

development, sub national development and
regional balanced development
 MSME Policy
• Uganda Micro, Small And Medium Enterprise (MSME)
Policy
• Theme: Sustainable MSMEs for Wealth Creation and
Socio-Economic Transformation
• Uganda’s private sector comprises of 90% Micro Small
and Medium Enterprises (MSMEs) of which 80% are
located in urban areas

• Assignment: Identify the strengths, weaknesses,

opportunities and threats of Uganda’s MSMEs?
 Priority sectors for MSME growth
• Manufacturing sector-food processing;
Textiles; Wood products, paper products and
rubber products
• Non-food manufacturing
• The energy, oil and gas sectors
• The service sector
• The education, hospitality and health support
services
 Some Policy interventions
• Strengthen the URSB as a „Single Window‟ for
all requirements
• Implement a simplified standardized business
registration process
• Encourage formalization of MSMEs
• Strengthen National Micro, Small & Medium
Enterprises Directorate
 Public- Private Partnerships (PPP)
• A policy framework for Public-Private
contractual arrangement intended to;
• Enables public and private sectors to work
together and,
• to improve provision o public infrastructure and
related services
• Key objectives:
– Cost effective service delivery
– Good quality services
 Objectives
– Clear customer focus
– Enhanced service diversity
– Enhanced incentive
– More project delivery
– Wider economic benefits
 Guiding Principles
• Value for money
• Public interest
• Risk allocation
• Output oriented
• Transparency
• Accountability
• Competitive tender process
 Some examples
• Transport Rift Valley Railways , Pioneer Bus Co – BRT

• Energy Bujagali Hydro ; Eskom - Hydro ; Umeme -

distribution ; Aggreko Thermal Plant; Mini-hydros –
several ; West Nile Power – mini grid
• Water -Small Towns Water Projects ; Kampala Ondeo
Management Contract
• Tourism -Serena Hotel
• Business Infrastructure -Local Market Developments -
several
 BUBU
• Buy Uganda Build Uganda policy

The objectives of the policy

(i) To promote consumption of local goods and
services.
(ii) To promote the use and conformity to standards
to guarantee quality goods and services.
(iii) To provide capacity building programs to local
suppliers of goods and services.
 BUBU Targets
i. 20% of Government procurement by value should be
of local products and services.
ii. 50% of shelf space in supermarkets should be
populated by local products.
iii. All MDAs strictly abide by PPDA Amendment Act
during procurement processes.
iv. 50% of local products conform to national standards.
v. 50% local resources and raw materials be utilized in
production.
 Skilling Uganda
• Business Technical Vocational Education and
Training (BTVET) Strategic plan (2012/3 to
2021/2)
• denotes a paradigm shift for skills
development in Uganda
 Paradigm shift

•
•
Curriculum
Certificates
Areas •
•
Skills
All Ugandans
• Sch. leavers • Purpose • Flexible
• Sch. System • Target • PPPs
• Govt. • Delivery
• Management

Curren Desire
t d
The Youth Venture Capital Fund (UYVCF)

• Worth UGX 25bn (about US$ 10 million) was

introduced in 2011
• government allocated UGX 265 billion (about
US$ 100 million) to the Youth Livelihood
Programme (YLP) over a five-year period.
• The major pillars of these initiatives are:
– enterprise development, job creation and business
skills training and development.
 UYVCF
• Partnership between GOVT of Uganda with
DFCU Bank, Stanbic Bank and Centenary Bank
• Has made available a venture capital fund of
UGX 25 Billion.
• Used to support growth of viable and
sustainable SMEs by the youth in the private
sector.
 Objective
• To provide venture capital debt finance to
viable projects proposed by the young
entrepreneurs as well as enable the youth
benefit from associated mentoring services
from the participating bank.
 Focus sectors
• The Fund is available to support the business
Ventures owned by young entrepreneurs.
• Eligible sectors include:
– manufacturing, agro-processing, primary
agriculture, fisheries, livestock, health, transport,
education, ICT, tourism, construction, printing and
service contractors among others.
– Check for eligibility
 Features
• Purpose – Business Growth/ Expansion
• Loan amount: Range of Minimum of UGX
100,000 and Maximum of UGX 5,000,000
(individual).
• (b) Minimum of UGX 500,000 and Maximum
of UGX 25,000,000 for a Legal entity with at
least five partners/shareholders.
• Loan period- 4 years
End