The Minister for Gender, Labour, and Social Development, Betty Amongi, has emphasized the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in Uganda’s economic landscape. Speaking at this year’s MSMEs Day celebrations themed “MSMEs – The Growth Engine for Women and Young People’s Entrepreneurship and Resilient Supply Chains,” held at the Imperial Royale Hotel, Kampala, Amongi highlighted their significant contributions.
“MSMEs are the backbone of Uganda’s economy,” Amongi declared, citing statistics that they constitute over 80% of the private sector, contribute approximately 20% to GDP, and employ more than 2.5 million people. She underscored their importance in job creation, innovation, poverty reduction, and sustainable economic development.
Amongi noted that 38.4% of businesses in Uganda are owned by women, making Uganda the second highest globally behind Botswana in this regard. She praised women entrepreneurs for their unique perspectives, innovative drive, and community-focused businesses, which significantly contribute to household incomes and socio-economic development.
“In addition to economic contributions, women entrepreneurs have shown remarkable resilience, particularly evident during challenges like the COVID-19 pandemic,” Amongi remarked.
Addressing the role of youth, who form the largest percentage of Uganda’s population, Amongi emphasized their crucial role in MSMEs for driving innovation and economic transformation. She highlighted youth-led enterprises as pivotal in addressing high unemployment rates among young people and reducing socio-economic disparities.
Amongi commended the Sustainable Business for Uganda (SB4U) initiative for its role in enhancing business skills for women and youth, building resilient supply chains, and improving market access for MSMEs. She thanked the European Union and other development partners for their collaboration in empowering women and youth towards sustainable development goals.
Caroline Adriaensen, Head of Cooperation for the European Union delegation in Uganda, reiterated the EU’s commitment to supporting MSMEs, noting their significant contribution to the Ugandan economy despite vulnerabilities that lead to high failure rates.
“As Team Europe, we believe in the capacity of women and youth entrepreneurs to innovate, particularly in supporting the green economic transition,” Adriaensen affirmed.
She highlighted the EU’s investment through the SB4U initiative, totaling shs549 billion, aimed at creating an enabling ecosystem for youth and women to thrive in sustainable enterprises. The initiative focuses on skills development, access to finance, governance, and promotion of trade and investment.
In conclusion, Adriaensen emphasized the EU’s dedication to fostering a conducive environment for MSMEs in Uganda, enhancing their resilience and sustainability through strategic partnerships with the government and local stakeholders.