Business & Management
Mak implored to research into the Centralization of Forest Governance in Uganda
Published
3 years agoon
By
Jane Anyango
Mpigi District Local Government and stakeholders in the forestry sector want Environmental economists from Makerere University to conduct research into the impacts of centralizing the governance of national forests in Uganda.
According to section 54 (1) a of the National Forestry Act, 2003, management of all Central Forest Reserves is the mandate of National Forestry Authority (NFA) whereas that of Local Forest Reserves is the direct responsibility of the district forest officer as specified under section 48 (3) e of National Forestry Act, 2003. All forestry activities are guided by the National Forestry Policy 2001.
Poor forest governance has been blamed for the depletion of the ecosystem in Uganda. The people of Mpigi contend that since government mandated NFA to manage national forests, most of the forests have been depleted and they want national forests governance decentralized.

To achieve this districts officials and stakeholders say, Makerere University should conduct research into the impact of centralizing national forest governance to provide evidence for policy change. This call was made during the policy dialogue held at the district chambers organized by the Environment for Development Initiative (EfD-Mak) Centre on 22nd November 2022. The university team was led by the Director represented by Dr. John Sseruyange.
The meeting brought together representatives of the district political and technical arms, civil society organizations, the private sector, elders and opinion leaders, farmers leaders under the theme, “Forestry and Biodiversity: Addressing Challenges of Forest degradation and Enhancing Environmental Management in Uganda”.
The participants discussed the key governance issues in the forestry sector, how communities can be strengthened to participate in forest recovery programs and what best forest restoration mechanisms should be adopted to revert the forest destruction trends in Uganda.

Governance here referred to, “the norms, institutions, and processes that determine how power and responsibilities over forests are exercised, how decisions are taken and how citizens – including women, men, youth, indigenous people and local communities – secure access to, participate in, and are impacted by the management of forests”
Presenting the status of forests in Mpigi district, the Chief Administrative Officer represented by the District Natural Resources Officer Mwidyeki Anthony said the management of forests in Mpigi has been so challenging and has on a number of occasions raised many issues involving NFA, the district and the community living adjacent to the forests.

“It should be noted that, the once thick forests in Mpigi district which had a collection of Muvule, Setaala, Musizi and other indigenous tree species have and are still gradually being reduced to empty land or replaced with eucalyptus trees for many reasons.
The natural forests reported that indigenous species that had survived for ages are now being abruptly ruined. This tragedy has befallen all the natural forests in Mpigi, a district once blessed with a wide range of biodiversity. Most natural forests in Muduuma and Kiringente have completely gone”, Mwidyeki submitted.
Mwidyeki explained that all the central forest reserves in Mpigi district with exception of Mpanga forest have been faced with the problem of encroachment in form of cultivation, grazing and settlement while in most of all the reserves, conflicts resulting from unclear boundaries are very common and have sometimes resulted in court cases leading to loss of time and money.

The vegetation cover of most Central Reserve Forests in Mpigi according to Mwidyeki have been changed into eucalyptus plantations, boundary markers uprooted, increasing forest encroachment, land grabbing and conflicts between NFA staff and communities living adjacent to these forests.
Besides population pressure that has increased the demand for fire wood, charcoal and land for settlement, Mwidyeki alleged that there has been creation of illegal land tittles in these reserves, construction of roads and industrialization.
Mwidyeki however highlighted a number of initiatives undertaken to promote forestry. These included; Sensitization and training of communities in forestry management, distribution of tree seedlings across the district, establishment of the district nursery bed, training and supervision of nursery owners on acquisition of quality tree seed and conducting routine inspections to detect and deter illegal forestry activities.

Representing the Director, EfD Mak Centre, Research Fellow Dr. John Sseruyange underscored the importance of forests as major stores of atmospheric carbon contributing to the regulation of climate change, water quantity, mitigating the effects of high flows in wet periods and low flows in the dry periods.
He said forests contribute to soil and water protection and biodiversity conservation and supply well over 90% of Uganda’s energy requirements in the form of fuel wood.
“Sustainably managed forests give environmental benefits, sustainable economic development and improve the quality of life of people across the country”, Dr. Sseruyange said

Sseruyange reported that the Uganda forestry sector reforms (1998 – 2003) aimed at providing more efficient and effective forest administration, management and utilization of Uganda’s forest resources, through: The Forestry Policy (2001), The National Forestry Plan (2002),
The NFTPA (2003) and a new institutional framework for the management of forestry resources in the country.
These resulted in the birth of institutions such as: The NFA, the UWA, the DFS, private forest owners and community forests owners which distributed responsibilities between the central government, local government agencies, the private sector, NGOs, community based organizations and the local communities.

The reforms according to Sseruyange aimed at promoting multi-stakeholder participation, transparency, integrity and professionalism in management of the forestry sector.
“Despite these good intentions, the forest estate in Uganda has continued to shrink from 4.9 million hectares in 1990 to currently 2.3 million hectares, NFA (2015) a loss of over half of the forests in a span of 25 years. …. However, over this period, 46% of protected woodlands- mostly those under NFA, were lost.
The reasons for this decline are mostly attributed to poor forest governance, and particularly problems with forest law enforcement and governance, and associated institutional issues” , He stated.

The main causes of deforestation according to Dr. Sseruyange relate to issues of governance in the forestry sector, illegal and unregulated trade of forest products and the unsecured forest tenure rights. Other issues are the conversion of forest land to other land use types such as agriculture and urbanization, and rampant felling of trees for firewood and charcoal burning.
In her closing remarks the Deputy Resident District Commissioner Maria Lubega described the dialogue as timely, thanked the university for choosing Mpigi, pledging the district commitment to support efforts geared towards restoring the environment.
Lubega wants an evidence based report on forest governance from Makerere University for presentation to the relevant government organs.

“Two weeks ago, the President sent someone from his office to come because he was interested in the environment restoration, and we are working on this report. When the report about this dialogue is ready share with us because it is timely, and I shall share with it directly with the president because NFA is just an authority and the other one is a fountain of honor so we shall take our views to the president”. She said.
Participants speak out
During the panel and plenary discussions participants expressed the need to decentralize the management of all forest reserves to the district.
“The forest sector is the least funded. Officers vehicles get stuck with no fuel. The moral fabric of the people of Mpigi is filled with, I don’t care attitude. NFA has been nicknamed as “nfa” meaning I am dying. NFA efforts are not coordinated with the district office. The District Natural resources officer should have been a member of NFA, there is a lot of political interference while implementing policies with orders from above”, The District Senior Entomologist Onyango Oluoch decried.
The District Forestry Officer Ssengendo Micheal says the major issue is governance.
“When you look back, the forests were intact and management was proper. All regulations were being followed. With the new changes in the policy of 2001 when they brought in NFA, that is where we all lost it because there was confusion and no coordination because of the bad governance.
The first thing we need to do is to revert back the old system. We need to have staff at every level. We need the forest guards, forest rangers but all these were reduced by two per district which is really over whelming when it gets to implementation of our forest management”.
Nsamba Benon, a Political leader says, districts had powers to safeguard forests but more damage has been done when powers were shifted from local government to central government.
“Ever since NEMA took over, there is a very big damage on our forests as compared to long ago. It is our mandate to protect the environment. The business of centralizing powers has done more harm than good to our country.
It is possible to bring all stakeholders to board to protect the environment but it cannot be possible if people are seeing non-residents cutting away indigenous trees planting and owning eucalyptus trees. The biggest issue here is policy. It should be reversed and our Forest Officer takes charge”.
Opinion leader, Frank Kawooya says the laws are weak and segregatively applied to a few.
“These laws are weak. Those who are supposed to manage forests cut the forests and replace them with eucalyptus. Now we see that forests have begun being shared. Am touched, in the past forestry students at Makerere would not be awarded degrees without coming to study in Lwamata forest . Today no child ever comes to study because forests are no more.”

The District Environmental Police Commandant says those mandated to guard the forest are the ones that cut the trees. He is opposed to the idea of replacing natural forests by eucalyptus and says enforcement is also problem.
“In 1924 we had an inventory for counting trees in Masaka. We counted trees about 2000. There is a forest called Buzilango but, of recent when went there, I found that there are people living there. It was no longer a forest for government. Forest guards are the ones who cut trees and sell to bakeries and schools. Eucalyptus is not good because they drain water at a high speed and, were introduced by industrialists who wanted to build industries.
But we of enforcement have a problem. You go and see a person with a car carrying timber and there is no legal document showing. When you stop the car, you will hear the person referring you to talk to another person. Sometimes there is collaboration with NFA and timber dealers connected from above. I suggest the powers should be brought back, decentralize forest reserves so that districts own, oversee and manage the forests. We need to sensitisize masses to look beyond financial gains but the future generation because in 50 years, we may not have any natural forest”.
A representative from the NGO forum called for sensitisation of the people on district and national forests.
“Different roles must be emphasized. Demarcations for individual, district and national forests must be emphasized. After sensitization they will know the species to plant”.
The District Farmers’ Chairperson Stella Nantamba says farmers are in weather crisis.
“Farmers rely on land. Soil is infertile, weather patterns have changed and many have resorted to forests and wetlands. Information given to farmers is distorted and weather changes are adverse Intervention requires adoption of agroforestry for environmental conservation and food security”.
But for teacher Emmanuel, charity begins at home and community. Sensitization form the community level will help children internalize the importance of forests.
“There is need for mindset change of those mandated to protect the environment so that children learn from them. Privatization of forests should be discouraged to save forests”, he said.
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Business & Management
PIM Centre Makerere, Graduates Second Cohort of Certificate in Financial Implications – Integrated Regulatory Cost-Benefit Analysis
Published
1 week agoon
September 5, 2025
Jinja, September 5, 2025
Thirty-one government officers from Ministries, Departments, and Agencies (MDAs) have successfully completed a two-week intensive training in the Certificate of Financial Implications (CFI) – Integrated Regulatory Cost-Benefit Analysis. The certification ceremony was held at the Pearl on the Nile Hotel, Jinja, marking another milestone in Uganda’s efforts to institutionalize evidence-based and fiscally responsible policymaking.
The training, delivered by the Makerere University Public Investment Management (PIM) Centre of Excellence in partnership with the Ministry of Finance, Planning and Economic Development (MoFPED), and National Planning Authority equipped participants with practical skills to evaluate policy and legislative proposals for their financial, economic, and social implications.

Speaking at the closing ceremony, Mr. Paul Mwanja, Commissioner for Infrastructure & Social Services at MoFPED, who represented the Permanent Secretary, commended the officers for their commitment at a time when government institutions are finalizing the Auditor General’s audits, implementing the FY2025/26 budget, rolling out the National Development Plan IV’s tenfold growth strategy, and preparing for the 2026 General Elections.
“Your participation affirms a collective commitment across Government to strengthen the quality, transparency, and credibility of public policymaking in Uganda,” Mr. Mwanja said. He urged graduates to return to their institutions as champions of reform, share their knowledge with colleagues, and drive the change needed in Public Finance Management. He also announced that the next cohort of the training will take place in January 2026.

Prof. Ibrahim Mike Okumu, Dean of the School of Economics at Makerere University, delivered the graduation address, highlighting the certificate’s importance in addressing Uganda’s triple challenge of scale, scarcity, and speed.
“This program does something unique. It teaches you not only to ask whether a policy or project is beneficial, but also whether it is affordable and resilient under real fiscal constraints,” Prof. Okumu noted. He challenged graduates to apply their skills at project, portfolio, and policy levels—ensuring value for money and enhancing public trust in government spending.

He further emphasized that Uganda’s pioneering approach to integrated CFI-CBA positions the country as a leader in Africa and beyond: “You, Uganda’s first CFI-CBA graduates, are now part of a global brain trust. Your work will speak to investors, parliaments, development partners, and above all, the Ugandan people.”
Dr. John Sseruyange, Manager of the PIM Centre of Excellence, expressed appreciation to participants for their active engagement throughout the training and thanked MoFPED and the faculty drawn from Makerere University, the National Planning Authority, Ministry of Finance, and the Ministry of Energy for their technical support.

The Certificate of Financial Implications – Integrated Regulatory Cost-Benefit Analysis was introduced following the Revised Guidelines for Financial Clearance, effective July 1, 2025. The guidelines require MDAs to prepare their own financial implications statements, subject to rigorous cost-benefit analysis, thereby strengthening linkages between fiscal responsibility and regulatory impact assessments.
With the successful completion of the second cohort, Uganda is steadily building a critical mass of professionals capable of embedding cost-benefit thinking across government, ensuring every shilling delivers maximum impact for citizens.


Business & Management
PIM Centre of Excellence Steering Committee Charts Way Forward
Published
1 week agoon
September 5, 2025By
Eve Nakyanzi
The Public Investment Management Centre of Excellence (PIM CoE) at Makerere University held its Steering Committee meeting on 4th September 2025 at Mestil Hotel in Kampala. The session, attended by all members, focused on reviewing progress, reflecting on achievements from the past financial year, and charting the way forward for the Centre.
About the PIM Centre of Excellence
The PIM CoE was established in March 2022 at Makerere University’s College of Business and Management Sciences (CoBAMS), in partnership with the Ministry of Finance, Planning and Economic Development (MoFPED). Its purpose is to strengthen Uganda’s public investment management system through training, research, and advisory services.
The Steering Committee plays a critical role in oversight, review, coordination, and advisory functions, guiding the Centre’s work and ensuring that public investment processes align with national development priorities.

Highlights from the Meeting
Speaking at the meeting, Dr. Joseph Muvawala, the Executive Director of the National Planning Authority, praised the October 2024 Annual PIM Conference for expanding perspectives on project design and delivery. He emphasized the importance of shifting from theory to practice in training, advocating for students and officials to engage with real-world projects. He also underscored the Centre’s new autonomy—transitioning from a subvention to a vote—which gives it greater independence but also demands stronger financial accountability. Dr. Muvawala further called for a permanent physical home for the Centre, noting that sufficient resources are available to make this possible and that negotiations with government are underway.
Mr. Ashaba Hannington, Director Budget at MoFPED, shared key achievements from the 2024/25 financial year. He noted that the Annual PIM Conference, organised jointly by MoFPED and the Centre, provided a vital platform for stakeholders to reflect on progress in public investment management.

Mr. Ashaba reaffirmed MoFPED’s commitment to working closely with the Centre to strengthen Uganda’s public investment capacity.

Prof. Eria Hisali, Co–Principal Investigator of the PIM CoE, outlined strategies to increase the Centre’s vibrancy and impact. He emphasized direct project engagement, advisory services, and peer reviews as ways to bridge the gap between theory and practice. Looking ahead, he revealed plans for a Master’s program in Economic and Investment Modelling, a Training of Trainers (ToT) initiative, and deeper practical capacity-building efforts.
Prof. Hisali also noted several successful trainings from the past year, including:
- 46 staff from MDAs trained in Essentials of PIM.
- 59 participants across two cohorts trained in Financial Appraisal and Risk Analysis.
- 25 participants trained in Economic Appraisal and Stakeholder Analysis.
He proposed the introduction of a “trailer feasibility test” to evaluate whether completed projects deliver benefits as projected and to address optimism bias in project planning.

Dr. John Seruyange, Manager of the PIM CoE, highlighted the Centre’s growing regional footprint. Beyond Uganda, six central government officers from Somalia have been trained in Infrastructure Asset Management, generating further interest in advanced training from Somalia, Zimbabwe, and Somaliland. To position itself as a regional hub, the Centre is preparing a prospectus to market its courses across Africa and beyond.
Why It Matters
The Steering Committee reaffirmed its commitment to ensuring that the PIM CoE remains a leading think tank and capacity-building hub for government and regional partners. By improving the appraisal, financing, and implementation of public projects, the Centre is strengthening accountability, enhancing service delivery, and contributing to Uganda’s broader development goals.
Business & Management
Dissemination Workshop: Government and Regulators urged to formalize the informal sector
Published
2 weeks agoon
August 29, 2025
On 29th August 2025, researchers from Makerere University College of Business and Management Sciences and the Copenhagen Business School, in partnership with Uganda Small Scale Industries Association disseminated the key findings and policy recommendations aimed at impacting both the informal and formal sectors in Uganda.
The dissemination workshop follows an intensive and participatory research project, which presents insights from a large scale study of over 1,100 small-scale firms across Uganda. Hosted at Makerere University, the dissemination workshop on Firm Formalization and Sustainable Development, brought on board key stakeholders including regulators, policy implementers, researchers, industry partners, the private sectors, manufactures, the academia, business men and women from the informal sector, and the media.
Approximately 90% of Small and Medium Enterprises (SMEs) in Sub-Saharan Africa operate in the informal sector. Uganda’s informal economy employs the majority of workers, but is characterized by low productivity and unsustainable practices. In Uganda, nearly 78% of the working population operate in the informal economy, spanning from street vendors to large unregistered businesses. Firms may choose to remain informal to hinder the accessibility of tax information, which consequently affects the government’s ability to mobilize domestic revenue. While informality provides livelihoods and informal firms may enjoy a significant degree of adaptability and flexibility, they typically face low productivity, limited worker protection, and environmentally harmful practices.
In 2022, an interdisciplinary team of scholars and practitioners embarked on research to examine the informal sector, gain a deeper understanding of the informal sector, as well as, its impact on sustainable development. The research team conducted field experiments and survey-based studies between 2022-2024 to evaluate the links between formalization and sustainable development.

Led by Prof. Marcus M. Larsen as the Principal Investigator, the research team consisted of the following the members: Prof. Faisal Buyinza-Local Principal Investigator, Dr. John Seruyange-Makerere University School of Economics, Dr. Ismail Kintu and Dr. Yusuf Kiwala-Makerere University School of Business, and Prof. Rebecca Namatovu-Copenhagen Business School. The research was funded by the Independent Research Fund Denmark.
“Our research shows that formalization can promote sustainable development, but outcomes differ by type: URA tax registration drives the most meaningful improvements in business, labour, and environmental practices, while URSB business registration mainly boosts legitimacy and local government licensing lags behind. To realize Uganda’s green and inclusive growth goals, formalization must be coupled with sustainability incentives, targeted reforms, and strong support from government, business associations, and civil society. From the policy perspective, the government needs to simplify the legitimization process through increased proximity of the registration centres for SMEs to leverage the benefits of formalization.”
Opening the dissemination workshop, the Principal of the College of Business and Management Sciences-Prof. Edward Bbaale represented by the Deputy Principal, Professor James Wokadala, emphasized the significance of the study in shaping Uganda’s development agenda. He underscored that Makerere University is committed to undertaking research with partners to drive inclusive growth and sustainable economic development. The Deputy Principal noted that the interdisciplinary research team combining the global north and global south expertise, positions the College of Business and Management Sciences at Makerere University, to produce impactful research to influence policy and practice at the national and global levels.

Unpacking the key concept in the research project, Ms. Veronica Namwanje, the Director of Uganda Small Scale Industries Association (USSIA) explained that formalization goes beyond business registration. “Formalization is about strengthening enterprises to grow sustainably,” she articulated. Commending the partnership between USSIA and the School of Economics at Makerere University, Ms. Namwanje stated that this collaborative learning experience will strengthen SME’s in Uganda. “This research will significantly impact Uganda’s economy. 75% of the labour force is employed in the non-formal sector. The research will support over 12,000 member SMEs across Uganda,” she said.
Building on the remarks from the College Principal and the Director of USSIA respectively, the Moderator of the dissemination workshop, Dr. Anthony Tibaingana called upon the project Principal Investigator, Prof. Marcus Larsen from Copenhagen Business School, to present to the audience, the gist of the research on formalization and sustainable development.

Prof. Larsen commenced his presentation by acknowledging the Local Principal Investigator, Prof. Faisal Buyinza and Makerere University researchers in Economics and Business for their commitment and dedication. “This project started in 2022. You have worked with me wholeheartedly. Thank you for being true partners,” he remarked. Prof. Larsen explained that this research exposed him to the beautiful country called Uganda, its fine weather and hospitable people. As this particular research project comes to an end, he leaves Uganda and Makerere University with good memories, of working with people, committed to the transformation of society.
Setting the pace into his presentation that provided a strong case for formalization of business given its contribution to inclusive growth and development of any country, Prof. Larsen provided a comparison between the Global north where formalization is a norm. “The Global North has zero tolerance for informal practices. In the Global North, you must be formally registered to operate a business,” he reported.
In the Global South, Prof. Larsen disclosed that the research studies proved that the number of firms under the informal sector was quite high. Through the research project, Firm Formalization and Sustainable Development in Uganda, they observed that many small scale businesses operate without any form of registration, from the Uganda Revenue Authority (URA) and the Uganda Registration Services Bureau (URSB).
With over 78% of the working population employed in the informal economy through numerous establishments (ILOSTAT, 2024), Prof. Larsen stressed that the situation in Uganda, necessitates a combined effort to ensure formalization of businesses/firms. He notified the audience about Sustainable Development Goal (SDG) 8.3, which encourages the formalization and growth of micro, small and medium sized enterprises. He also made reference to Uganda’s 4th National Development Plan, which states, and I quote: “This dual nature of informality contributes to low productivity, survival and growth of enterprises, as well as, limiting effectiveness of government policy incentives.”
Prof. Larsen argued that addressing high firm informality in the Global South through formalization can unlock growth, enable access to resources, spur sustainable development, drive inclusive growth, and contribute to the realization of Sustainable Development Goals (SDGs).
Examining SMEs and the environment, Prof. Larsen reported that the research findings indicated that that environmental issues are given less attention by SMEs. “Informal workers are particularly affected by and affect climate change. Most of the interactions proved that informal workers use environmentally unfriendly practices,” he stated. Prof. Larsen together with the research team advocated for a transition to formalization of firms, which leads to environmental sustainability with decent workers.

The research team observed that informal workers suffer from job insecurity, and in most cases, their employers do not remit their social protection funds. For instance, in Uganda, most of the workers in the informal sector did not have any contributions with the National Social Security Fund (NSSF).
Presenting the key research insights, Prof. Larsen focused on the formalization and practices, interpretation for policy makers, and SME survival and sustainability. Formalization and Practices provided hints on URSB (business registration), URA (Tax Registration) and Local Government (Trading Licenses).
Providing the interpretation for policy makers, Prof. Larsen elaborated as follows: URSB formalization mainly signals legitimacy, but has limited impact on deeper practices; URA formalization, though resisted initially, delivers the strongest and broadest improvements in business, worker and environmental practices once firms adopt it; and Local government licensing is associated with negative or weak outcomes indicating a need to reform systems to better incentivize sustainability.
On SME Survival and Sustainability, the key research insights include the following:
Financing: MSMEs that started with external financing were 12% more likely to survive than those using internal funds.
Gender: Male owned MSMEs had a higher survival rate (+13%) due to greater access to resources, though firms owned by females reported stronger sustainability orientations.
Location: Urban-based firms had 10-20% higher survival than rural firms, though rural enterprises displayed higher sustainability practices overall.
Education: Owners with university education had survival rates 17 to 24% higher than those with primary schooling.
Business associations: Female-owned MSMEs in associations had 13 to 16% higher survival rates
Registration effects: Surprisingly, longer registration with URA/URSB was associated with slightly lower survival rates (1 to 4%), pointing to burdens of compliance.
The Local Principal Investigator, Prof. Faisal Buyinza, advocated for multi-faceted policies to empower SMEs in Uganda for instance, through simplifying registration, providing green tax incentives, protection of workers and guarding against counterfeit products. Prof. Buyinza presented the following policy recommendations:
- Raising sustainability standards in business formalization
- Building green and fair fiscal systems
- Strengthening social protection and green employment
- Enhancing entrepreneurial skills for sustainability
- Promoting youth and ago-led green innovation
- Advancing women’s leadership in sustainable enterprises
- Digital transformation for green formalization
- Civil society and employer advocacy for just transition
The participants delved into an interactive question and answer session moderated by Prof. Eria Hisali, former Principal of the College of Business and Management Sciences, who provided strategic guidance and oversight at the inception of the research project.

Prof. Hisali called upon the participants and key stakeholders to contribute to the discussion, when he said: “The informal sector is not abstract. The informal sector is with us. I therefore call upon you to share lived experiences and practices on this matter.”
Taking on the form of a plenary, the following ideas were raised:
- Financial constraints are a major blow to SMEs. This is further complicated by the payments required through registration, licensing, taxation, and other formalization processes including the high cost for online operations that require access to the Internet.
- Power outages in Uganda significantly affect business operations. When power is on and off, SMEs incur losses due to the nature of their activities.
- URA has a close working relationship with Uganda Small Scale Industries Association (USSIA). This partnership should be leveraged to reach out to business owners in the informal sector.
- The government should provide tax incentives to local investors. This incentive will positively impact formalization of businesses.
- URBS should come up with tough measures on standards in order to safeguard Ugandans from counterfeit products.
- URA and URSB should note that majority of players in the informal sector are not educated, and, as such, should come up with specialized awareness programmes delivered in a language that they can understand.
- Noting that despite the benefits of formalization, entrepreneurs fear to formalize their business, those concerned should invest time and resources to identify the reasons behind this attitude.
- Create awareness by deliberately popularizing the benefits of formalizing a business, and the incentives that accrue to someone who has formalized his or her business.
- Commending the stakeholder mapping and segmentation with respect to policy recommendation, the participants requested for the involvement of the Ministry of Gender, Labour and Social Development.
- Tackling the policy recommendation on digital transformation, the participants recommended the involvement of NITA-Uganda.
- Formalization of businesses and registration is affected by the high cost of Internet services and subscriptions. The participants reported that the high costs of Internet deter online operations.
Reflecting on the ideas raised during the plenary sessions, Prof. Hisali observed differences in the level of awareness regarding business formalization. He called upon the Uganda Small Scale Industries Association and Makerere University to continue the discussion with key stakeholders to conduct periodic awareness creation and training sessions.
On a positive note, the participants and stakeholders were notified that URA was in advanced stages of according tax holidays to SMEs. Prof. Faisal Buyinza, who interacted with URA, during the course of the research project (2022-2024), highlighted that effective July 2026, start-up business up to UGX 300million, will not be taxed. Such start up business, will enjoy a tax holiday of three years.”
The submission from Prof. Faisal Buyinza was supported by officials from URA who were physically present in the dissemination workshop held in the Conference Hall, at the College of Business and Management Sciences, Makerere University.
The participants were thoroughly engaged during the dissemination workshop, which entailed remarks from the College Principal, presentation by USSIA, project purpose and findings, research presentation, policy implications, question and answer session, and final reflections.
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