Source: APO
Finance Minister Hon. Henry Musasizi has challenged businesses to turn Government’s wealth creation and affordable financing initiatives into larger, profitable and export-oriented enterprises, as Uganda seeks to build a US$500 billion economy by 2040.
Speaking at the 17th National Competitiveness Forum held at Serena Hotel, Kampala, Musasizi said the Forum, themed “From Funds to Firms: Turning GoU Wealth Creation Initiatives into Competitive Enterprises for Uganda’s US$500 Billion Economy,” is aligned with the ongoing FY2027/28 budget consultations.
“The proposals arising from this Forum will inform budget prioritization going forward,” Musasizi said.
He said Uganda must do things differently under NDP IV and the Tenfold Growth Strategy by sustaining economic growth of about 8% annually 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, noting that productivity is critical for sustaining high economic growth and creating productive employment.
Musasizi said Government has invested heavily in catalytic financing to de-risk private investment and expand access to affordable capital.
By June 2026, Government had provided Sh4.4 trillion under the Parish Development Model, about Shs 760 billion under Emyooga and Shs 1.35 trillion through the Agricultural Credit Facility, which has reached 14,000 projects and beneficiaries.
Government has also capitalised Uganda Development Bank to Shs 1.6 trillion, while the Small Business Fund has a total capitalisation of Shs 200 billion. The US$217 million GROW Project supports women-led enterprises, while Sh176 billion has been provided to support large-scale commercial farmers.
Uganda Development Corporation has an equity investment portfolio valued at about Sh1.4 trillion, generating more than 5,400 jobs across agro-processing, manufacturing and pharmaceuticals.
“Government is resolute to support business growth and transformation to large and profitable firms, with a strategic focus on export-oriented enterprises,” Musasizi said.
He urged stronger private-sector partnerships, technology adoption, value addition, improved storage and logistics, quality standards and export financing, while encouraging businesses to exploit opportunities under EAC, COMESA and AfCFTA.
State Minister for Privatization and Investment Hon. Amina Mukalazi called for a shift in Government’s wealth creation programmes from counting beneficiaries to building sustainable enterprises that create jobs, add value and generate exports.
“We must now become just as good at building firms,” Mukalazi said, noting that too much of the support still ends in small, scattered and isolated activities.
She said Uganda’s US$500 billion economy target must be built through millions of households participating in organised value chains rather than producing in isolation.
“There is no road to the US$500 billion economy that goes around the Ugandan household. It must go through it,” she said.
Mukalazi proposed organising household enterprises into clusters linked to anchor companies, aggregators, processors and exporters, giving producers clear markets, standards and prices.
She also called for coordinated Government financing so enterprises can graduate from initial support to working capital and equipment finance, rather than falling out of the funding system.
“Competitiveness is not decided in a room. It is decided at the counter and on a supermarket shelf,” she said, stressing the need for certification, packaging, traceability and branding.
She called for a “one Government, one window” approach to simplify access to support, while urging the private sector to participate as anchor buyers, investors, mentors and partners.
Permanent Secretary, Secretary to the Treasury, RamathanGgoobi called for stronger aggregation of Uganda’s fragmented production to help enterprises scale, meet international standards and access export markets.
Ggoobi said Uganda’s exports have risen by about 229% over the past four years, from US$5.6 billion in June 2022 to US$18.4 billion, but enterprises and farms still operate below their potential.
He identified fragmented supply, post-harvest losses, limited value addition and expensive working capital among the key constraints. “We are losing up to 40% of what we harvest,” Ggoobi said, citing inadequate drying yards, storage and transport.
He said Uganda also needs to move away from exporting raw products, noting that value addition is critical to increasing export earnings.
The Finance Ministry is establishing an Export Aggregators Network and Delivery Scheme to bring Government and the private sector together to create reliable links between households, farmers, financiers and foreign buyers. Ggoobi said aggregators should consolidate, standardise, grade and certify products and secure contracts with buyers.
Distributed by APO Group on behalf of Ministry of Finance, Planning and Economic Development, Republic of Uganda.