Business & Management
Strengthening Europe-Africa Higher Education Collaboration through the NEAR-ER Project
Makerere University in Uganda, is implementing the Network on Europe and Africa Relations-Education and Research (NEAR-ER) project, which seeks to strengthen collaboration in higher education through dialogue, events, scholarly debates, exchange of best practices, and dissemination of research and techniques.
The NEAR-ER is a Jean Monnet policy network of 20 higher education institutions; 7 in Europe and 13 in Africa. The thematic areas include: Shared Peace, Shared Prosperity and Shared Spaces as expounded below:
Shared Peace-Democracy, Rule of Law, Justice and Positive Peace Initiatives; Shared Prosperity-Trade Relations, Development Cooperation and Sustainability; and Shared Spaces-Climate Change, Energy Cooperation and Population Movement
The implementation of the three year (December 2024 to November 2027), NEAR-ER project co-funded by the European Union, follows a successful response, to a call for proposals by researchers based at the School of Statistics and Planning under the College of Business and Management Sciences (CoBAMS). The NEAR-ER research team consists of the following: Dr. John M. Mushomi – Principal Investigator, Dr. Patricia Ndugga, Dr. Elizabeth Nansubuga, Dr. Olivia Nankinga, Dr. Nicholas Tunanukye and Dr. Fred Maniragaba.
Early Career Researchers and Graduate Students’ Dialogue
On 16th June 2025, Makerere University hosted the NEAR-ER dialogue targeting early career researchers and graduate students from higher education institutions in Uganda.
Featuring remarks from Makerere University officials, an overview of the NEAR-ER project, a panel discussion on the career prospects in the EU, and an interactive question and answer session, the dialogue presented an opportunity to participants to engage with leading scholars in Europe-Africa relations, network with academics across continents, explore research and career prospects in EU-Africa partnerships, contribute to meaningful discussions on contemporary challenges affecting both continents, and gain insights into current trends and future directions in Europe-Africa cooperation.
The following members of the NEAR-ER project tipped early career researchers and graduate students on Africa and Europe relations including research, partnerships, academics, access to scholarships, mobility, networking, and among other important aspects: Prof. Muller Gustavo-the Overall Principal Investigator from KU Lueveni, Prof. Chris Nshimbi-Africa Principal Investigator from University of Pretoria, and Dr. John A. Mushomi-Principal Investigator at Makerere University.
Tour of Makerere University Innovation Pod
Prior to the dialogue, the NEAR-ER delegation toured the Makerere University Innovation Pod (Mak Unipod). Reflecting on the tour, Prof. Muller Gustavo lauded the level of innovation, describing it as a promising space for African-centered academic advancement.
NEAR-ER delegation Courtesy meeting with the Vice Chancellor
The delegation participated in a courtesy meeting with the Vice Chancellor, Prof. Barnabas Nawangwe, who was represented by the Acting Deputy Vice Chancellor (Academic Affairs), Prof. Buyinza Mukadasi. The following University officials participated in the courtesy meeting held in the Vice Chancellor’s Board Room: Associate Prof. James Wokadala-Deputy Principal-College of Business and Management Sciences, Associate Prof. Ibrahim Mike Okumu-Dean, School of Economics, Dr. Margaret Banga-Dean, School of Statistics and Planning, and Dr. John A. Mushomi-Principal Investigator of the NEAR-Project at Makerere University.
Official Opening of the NEAR-ER dialogue
Opening the NEAR-ER Dialogue on behalf of the Vice Chancellor, Prof. Barnabas Nawangwe, the Acting Deputy Vice Chancellor for Academic Affairs-Prof. Buyinza Mukadasi, underscored the significance of the event, as a defining moment in research collaboration in Africa and Europe. He emphasized that the academic convening provided a strategic platform for deep reflection, meaningful reconnection, and a renewed commitment to joint scholarship that promotes peace, shared prosperity, and inclusive development.
Prof. Buyinza Mukadasi noted that the activities of the NEAR-ER project were aligned with Makerere University’s strategic vision as well as Uganda’s national development agenda. He expressed optimism that the deliberations would spark innovative thinking, strengthen solidarity between Africa and Europe, and help shape a future rooted in shared values, mutual respect, and purposeful collaboration.
He encouraged the participants in the NEAR-ER dialogue to ensure that Africa embraces the Fourth Industrial Revolution through optimizing digitalization systems and processes. He challenged the participants to view the dialogue, as a call to action, and a catalyst for cultivating transformational African leaders equipped with relevant digital skills and employable knowledge. He stressed that the continent’s future hinged on preparing the next generation to confidently navigate and address the demands of the digital age.
Putting across a strong case for African institutions to take on leadership in the co-production of knowledge, Prof. Buyinza Mukadasi said: “Africa’s development trajectory depends on homegrown ideas, African-led innovation, and the strategic harnessing of global partnerships to address local and global challenges.”
Highlights by the College Principal
The Principal, Prof. Edward Bbaale represented by the Deputy Principal, Associate Prof. James Wokadala, described the NEAR-ER project as a foundational moment in the redefinition of global academic cooperation from the heart of Africa. The Principal called upon the participants to utilize the dialogue to form enduring partnerships.
He underscored the College’s central role in advancing global academic collaboration, within the framework of EU-Africa partnerships in education and research. He noted that the dialogue marked a significant milestone through positioning CoBAMS as a vital conduit for strengthening cross-continental partnerships. He highlighted that the NEAR-ER network’s emphasis on education and research strongly aligned with the College’s mission to foster robust academic linkages between the Global North and South.
The Deputy Principal acknowledged CoBAMS’ unwavering dedication to advancing Makerere University’s agenda of becoming a global academic e-hub, particularly within the evolving landscape of EU-Africa relations. He reported that the College was actively undertaking strategic initiatives to deepen international engagement—initiatives designed to foster mutual learning, catalyze collaborative research, and create meaningful career development pathways.
“The College leadership has prioritized supporting young researchers and postgraduate students, thus empowering the next generation of scholars to thrive in an increasingly interconnected academic ecosystem,” he said.
Highlights from the Principal Investigator
Focusing on the critical role of students in academic institutions, Dr. John A. Mushomi, the Principal Investigator of the NEAR-ER project at Makerere University, said: “Our students are our main customers. We should therefore nurture and empower our learners through global research and engagements.”
Dr. Mushomi highlighted the importance of providing a “safe engagement space” for students and researchers. Reflecting on his academic journey, and postdoctoral fellowship, he acknowledged the relevance of seeking mentorship, citing it as an instrumental step in his path to the NEAR-ER network.
He also acknowledged the long-term collaborative efforts that led to the successful NEAR-ER grant proposal, notably involving both Makerere University and Kyambogo University.
Overview of the NEAR-ER project
Presenting the Overview of the NEAR-ER project, Prof. Muller Gustavo, a Senior Researcher at the London Centre for Global Government Studies underscored the critical importance of collaborative research and education between Europe and Africa. He noted that holding the first African convening/dialogue at Makerere University was both strategic and symbolic of the growing academic ties between the two continents.
Delving into the origins of the project, Prof. Gustavo revealed that the idea for the network was conceived approximately three years prior, where they envisioned a platform that would encourage dialogue, research, and exchange on topics central to Europe–Africa relations. They rallied scholars from diverse institutions, forming a vibrant and interdisciplinary consortium.
“Over the last three years, we put together a group of universities to foster and facilitate research and communication on relationships between Africa and Europe. The goal of the consortium is to disseminate the research and education practices, the best practices of education in Africa, in Europe, but also worldwide,” he said.
Prof. Gustavo highlighted that the NEAR-ER project will serve as a vehicle to foster best practices in education, research dissemination, and policy-relevant collaboration. He noted that the network intentionally included universities and institutions representing diverse linguistic and cultural contexts, affirming their commitment to inclusivity and comprehensive regional representation. According to Prof. Gustavo, this diversity strengthens the network’s mission to bridge educational and research gaps between the global north and south.
Beyond institutional collaboration, Prof. Gustavo emphasized the network’s commitment to public engagement and knowledge dissemination. He detailed a range of outputs already in motion, including research blogs, podcasts, newsletters, webinars, policy surveys, and country-specific forecasts.
Prof. Gustavo urged the students and young scholars to become active contributors to the NEAR-ER platform. He explained that the network is open to ideas from emerging voices—whether through blogs, podcasts, or other digital formats—and provides a unique opportunity for students to share perspectives and shape global discourse.
“There might be opportunities here for some of you that are interested in further increasing your knowledge on European integration, African integration, and the relationship between those two processes. You may be a student who has an idea on how to improve the relationship and looking at a particular aspect to get that idea out to the world, we can offer that destination platform for you as well,” Prof. Gustavo mentioned.
Remarks by the Dean, School of Statistics and Planning
Dr. Margaret Banga, the Dean of the School of Statistics and Planning, informed the participants, that the dialogue was a space to unite the varied disciplines and backgrounds present, all in pursuit of a shared vision for the future.
“The NEAR-ER initiative is more than a research collaboration. It is a bridge of solidarity between Europe and Africa—a platform where shared learning leads to shared solutions. It is not about the North teaching the south, but it is about learning from one another,” Dr. Banga said.
Standing as a firm believer in the transformative power of research, innovation, and youthful curiosity, Dr. Banga, underscored the importance of structure and strategy in translating ideas into impact. She encouraged the audience to treat planning as the bridge between possibility and progress. She stressed that without a clear methodology, timeline, partners, and budget, even the most brilliant ideas can fade into obscurity, but with a solid plan, those same ideas can evolve into funded projects, published policy briefs, and life-changing solutions.
To the young scholars, Dr. Banga issued a powerful call to action. “You are the thinkers who will unlock Africa’s economy,” she said. “You are the innovators who will shape climate resilience. You are the analysts and planners who will rethink development—not as something done for us, but as something shaped by us.”
With conviction and hope, Dr. Banga reminded the young scholars that they were not mere students, but emerging leaders, and agents of change. She urged them not to wait for some future moment of “expertise” before stepping up. She offered a critical reminder that every question they pose, every network they build, and every inquiry they pursue is already shaping the world, “Your research is not small because you are just starting out, your work has the power even now to improve lives and influence generations. Don’t just study the world. Change it.”
A voice from the PhD Students
Ms. Claire Cheremoi, President of the PhD Fellows at Makerere University, expressed her appreciation for the spirit of unity and collaboration fostered by the NEAR-ER dialogue. “Our voices matter. Coming together as students is powerful,” she said.
Ms. Cheremoi emphasized the value of collective engagement, stressing that such platforms were essential in facilitating the sharing of knowledge, fostering meaningful networks, and sparking critical discussions on the issues that matter most to young scholars. She stated their commitment to engaging in conversations on research funding, interdisciplinary collaboration, and broader academic partnerships.
A statement from the representative of undergraduate students
Mr. Ssozi Fahad Batte, Chairperson, Students Guild Council, College of Business and Management Sciences acknowledged the students had the zeal to learn, grow, and contribute meaningfully. In his view, the most significant outcome of such dialogues was the ability to extract value—something “to take home.”
He stated the critical role of documentation, urging fellow participants to write down their ideas, strategies, and action points in order to share them beyond the event. He also highlighted the importance of networking, stressing that connections and collaborations were central to growth in academia and beyond.
Panel discussion on Career Prospects in the EU
In a panel discussion moderated by Dr. Robert Ojambo from Kyambogo University, several international scholars shared invaluable insights on navigating academic and professional opportunities abroad—particularly for students and researchers from the Global South.
The panel discussion offered a wealth of practical insights for young scholars seeking academic and professional opportunities across borders. The panelists emphasized the importance of building trust-based networks, as well as, going beyond emails to form genuine relationships with professors, peers, and institutions.
Strategic planning emerged as a recurring theme during the panel discussion—highlighting the need to research language requirements, living costs, and cultural differences when selecting destinations. Participants encouraged scholars from the Global South to view their unique backgrounds as assets that contribute to valuable perspectives to global discourse.
Opportunities such as Intra-Africa Academic Mobility programs, and summer schools were also presented as transformative pathways that combine education, exposure, and networking. The discussion also stressed the power of initiative—actively reaching out, applying, volunteering, and making oneself visible in digital academic spaces. Importantly, career success was linked not just to passion, but to aligning one’s skills with institutional needs and being open to unpaid roles such as voluntary service that build experience and credibility. The overall message was clear: international academic success requires preparation, adaptability, and the courage to take the first step.
As participants engaged across these thematic areas, the NEAR-ER dialogue underscored the central role of universities in bridging regions, amplifying diverse voices, and generating research-driven responses to global emergencies. The NEAR-ER dialogue held at Makerere University was not just a reflection of academic solidarity—it was a declaration of shared purpose and a call to action in re-imagining a more just, peaceful, and sustainable future across continents.
Business & Management
PIM Centre Makerere, Graduates Second Cohort of Certificate in Financial Implications – Integrated Regulatory Cost-Benefit Analysis
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.
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
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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