The European Union (EU) has announced €138 million (Shs549 billion) in funding to support Micro, Small, and Medium-Sized Enterprises (MSMEs) in Uganda. The announcement was made by Caroline Adriaensen, Head of Cooperation at the EU Delegation to Uganda, during the World MSME Day 2024 celebration.

“MSMEs are the backbone of Uganda’s economy, accounting for 90% of the private sector, 80% of manufactured output, and 75% of GDP. However, they face significant challenges, with over 50% failing to reach beyond three years of operation,” Adriaensen said. “Our funding aims to support women and youth entrepreneurs, who have a strong capacity to innovate and create jobs.”

The funding is part of the EU’s Sustainable Business for Uganda (SB4U) Team Europe Initiative, which focuses on four areas: Skills and Attitude, Access to Finance, Governance and Accountability, and Promotion of Trade and Investment.

“We believe that women and youth entrepreneurs have a strong capacity to innovate in business, particularly in supporting the green economic transition,” Adriaensen emphasized. “Our initiatives aim to provide financial and technical support to early-stage businesses and young entrepreneurs, promote entrepreneurship training and access to finance, and create jobs in Uganda.”

The EU funding will support various initiatives, including the Team Europe Initiative on Investing in Young Businesses in Africa, the WeWork programme, and the Opportunities Are Here project.

“Our partnership with the EU has been instrumental in supporting Uganda’s economic growth and development,” said Minister of Gender, Labour and Social Development, Betty Amongi. “We appreciate the EU’s commitment to supporting women and youth entrepreneurs, who are critical to our country’s future prosperity.”

Speaking at the event, Betty Amongi, Minister of Gender, Labour and Social Development, emphasized the importance of women and youth in driving economic growth and social development.

“The contribution of women and youth to the MSME sector in Uganda is vital. Their entrepreneurial spirit and resilience are driving forces behind our economic growth and social development,” Minister Amongi said. “Let us continue to support and empower them, ensuring that they have the resources and opportunities needed to succeed.”

The government has implemented various initiatives to support women and youth in MSMEs, including the Generating Growth Opportunities and Productivity of Women Enterprises (GROW) Project, Parish Development Model (PDM), Uganda Women Entrepreneurship Programme (UWEP), Youth Livelihood Programme (YLP), and Presidential Initiative on Wealth and Job Creation (Emyooga) Programme.

“These initiatives aim to provide financial support, mentorship, and networking opportunities to women and youth entrepreneurs,” Minister Amongi explained. “We believe that by empowering women and youth, we can unlock the potential for economic growth and social development in Uganda.”

The government has also amended the Public Procurement and Disposal of Public Assets (PPDA) Act to accord affirmative action to women, youth, and persons with disabilities in public procurement processes.

“We urge all stakeholders, including the private sector, development partners, and civil society, to join hands in creating a conducive environment for women and youth entrepreneurs to thrive,” Minister Amongi appealed.