Kampala, Uganda | THE INDEPENDENT | Absa Bank Uganda and Enterprise Uganda signed a Memorandum of Understanding that will see the two organisations partner to offer Micro, Small and Medium-size Enterprises (MSMEs) business development services and upskilling in financial literacy in 9 districts across Uganda.
Beginning on 3 April 2023, the partnership will see over 1,000 MSMEs from Jinja; Mbale; Lira; Arua; Hoima; Fort Portal; Mbarara; Masaka and Kampala empowered to boost their entrepreneurship awareness, business growth and sustainability.
Albert Byaruhanga, Absa Bank Uganda’s Business Banking Director, said, “We know that businesses face many challenges when it comes to streamlining their business operations to remain profitable in the long term. This partnership is one of the many ways that we are stepping up to be a strong proponent of business growth in Uganda.”
According to the Uganda Investment Authority, SMEs remain Uganda’s engine of growth, employing over 2.5 million people, accounting for approximately 90% of the entire Private Sector and generating over 80% of manufactured output that contributes 20% of the gross domestic product (GDP).
SMEs are represented across all sectors with 49% in the service sector, 33% in commerce and trade, 10% in manufacturing and are key drivers in fostering innovation, wealth creation and job creation. However, according to Fundera, 20% of small businesses fail in their first year, 30% in their second year, and 50% after five years in business.
Rosemary Mutyabule, the Director of Business Advisory at Enterprise Uganda, said, “The challenges facing SMEs and hindering their growth are still very many, and we are always looking for different ways through which we can impact even more SMEs to ensure that they have the tools necessary to become resilient and fulfil their potential to provide sustainable jobs and enhance economic growth. As Enterprise Uganda, we appreciate Absa Uganda for joining hands with us to walk this journey for the good of the country’s SME ecosystem.”
Absa’s Albert Byaruhanga said, “Absa Bank Uganda takes its roles as a faciliatator of inter-generational wealth creation, as a contributor to national economic development and as a catalyst for sustainable job creation, very seriously. Contributing to and supporting the growth of the business sector is a critical part of Absa Uganda’s commitment to being a dynamic and relevant force for good in the communities in which we operate. Our partnership with Enterprise Uganda is aimed at providing businesses with critical advisory services to upskill them for success.”