By Spy Uganda
Trade, Industry and Cooperatives Minister Hon. Sanjay Tanna has called for stronger investment, innovation, value addition and appropriate financing to help Uganda’s micro, small and medium enterprises (MSMEs) move from survival businesses to sustainable and competitive enterprises.
Tanna made the call on Thursday while officiating at the launch of the National MSME FinScope Survey at Kampala Marriott Hotel in Nsambya, Kampala.
The survey brings together Government officials, private-sector representatives, financial institutions, development partners and other stakeholders to generate updated data on the financial needs, constraints and growth prospects of Uganda’s MSME sector.
As Guest of Honour and keynote speaker, Tanna emphasised the importance of reliable evidence in guiding Government policies and interventions aimed at strengthening businesses.
He particularly stressed the need for stronger partnerships between Government, financial institutions and the private sector to ensure that enterprises can access the resources required to invest, expand, create jobs and compete in wider markets.
A key issue highlighted during the launch was the difference between general access to financial services and productive finance that enables businesses to grow.
Tanna emphasised that MSMEs need financing that is suitable for investment and expansion, including affordable credit with appropriate repayment periods.
The survey will therefore examine whether businesses are accessing the right type of finance and whether existing financial products adequately respond to the needs of enterprises.
The issue is particularly important given the financing challenges faced by many Ugandan businesses, alongside constraints related to markets, technology, skills and business-support services.
Tanna also highlighted the importance of the survey in informing the ongoing comprehensive review of the MSME Policy 2015.
The policy seeks to promote viable, dynamic and competitive MSMEs through interventions covering areas such as access to finance, markets, skills, technology, quality and business-support services.
The new evidence is expected to help Government assess whether these interventions remain relevant to the realities facing businesses today.
The survey will also seek to establish why some micro enterprises fail to transition into small and medium-sized businesses, why viable enterprises remain informal and what combination of finance and business-development services can deliver better enterprise outcomes.
The survey will further examine the specific needs of women-owned, youth-owned and growth-oriented enterprises, providing information that could support more targeted interventions.
Tanna’s message also fits into Government’s broader push for productivity, value addition, innovation and market expansion as part of Uganda’s economic transformation agenda.
He has previously emphasised the need for Uganda to increase investment in manufacturing and value addition instead of depending heavily on the export of raw materials.
The FinScope Survey is expected to provide a clearer picture of the barriers businesses face, including informality, limited access to suitable finance, inadequate business records, technology gaps, skills shortages and difficulties accessing markets.
The findings are expected to contribute to the review of the MSME Policy 2015 and guide Government, financial institutions and development partners in designing interventions that respond more directly to the needs of enterprises.
For Tanna, the ultimate goal is to create an environment where Ugandan businesses can access productive finance, increase value addition, create employment and become more competitive in regional and global markets.
