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Gov’t Pledges MSME Protection from Harsh Enforcement, Eyes Cooperative Bank Revival

Abbas Ibrahim by Abbas Ibrahim
June 30, 2025
in Business
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Gov’t Pledges MSME Protection from Harsh Enforcement, Eyes Cooperative Bank Revival
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The government has pledged stronger support and protection for Uganda’s Micro, Small, and Medium Enterprises (MSMEs), vowing to shield them from punitive regulatory practices and provide improved access to financing and regional markets.

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Speaking during the national celebrations to mark the 9th International MSMEs Day in Mbale City, Trade, Industry and Cooperatives Minister Francis Mwebesa took aim at the Uganda National Bureau of Standards (UNBS), accusing the agency of overreaching its mandate and using enforcement powers to harass traders.

“The role of government is to support and empower our people—not to chase them out of business with regulations,” Mwebesa said, drawing applause from hundreds of traders and entrepreneurs.

The minister condemned UNBS’s practice of closing down shops over single non-compliant items, calling it “destructive” and counterproductive. He urged the agency to prioritize enforcing standards at the source, both for imports and locally manufactured goods.

“You cannot allow substandard goods into the country and then punish the traders selling them. That is failure at the point of entry,” Mwebesa said, questioning the effectiveness of pre-inspection efforts abroad.

The minister emphasized collaboration between regulators and manufacturers, noting that working with producers before goods reach market would ensure better compliance and reduce the burden on small traders.

Held under the theme “Empowering Uganda’s MSMEs for Sustainable Growth and Regional Competitiveness,” the event spotlighted MSMEs as key drivers of employment, exports, and innovation in Uganda’s economy.

Mwebesa reiterated government’s plan to revive the defunct Cooperative Bank to offer tailor-made financial services to MSMEs and cooperatives. He noted that while current programs like Emyooga, the Parish Development Model, and the Small Business Recovery Fund have provided some relief, a dedicated institution would offer long-term solutions.

Projects such as the GROW initiative and the INVITE project were also highlighted. The GROW initiative is set to support over 8,000 women-led businesses and impact 1.6 million beneficiaries, while the INVITE project is expected to create over 200,000 new jobs.

The minister said Uganda is working to help MSMEs tap into larger regional markets through platforms like the East African MSMEs Trade Fair. Last year’s fair was held in Juba, South Sudan, and this year’s will be hosted in Nairobi, Kenya.

First designated by the UN in 2017, June 27 marks International MSMEs Day—a moment to recognize the economic role of small businesses and raise awareness about their contributions to achieving the Sustainable Development Goals (SDGs).

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Abbas Ibrahim

Abbas Ibrahim

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