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.
Over 35 public officials from various Ministries, Departments and Agencies (MDAs) have commenced a two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara. The training is organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).
Speaking on behalf of the Permanent Secretary and Secretary to the Treasury, Ms. Esther Ayebare commended the ongoing efforts to strengthen Uganda’s public investment management systems. She highlighted the recent launch of the National Public Investment Management Policy, describing it as a robust and unified framework guiding the entire investment cycle—from planning and appraisal through to implementation and post-evaluation.
Ms. Ayebare further noted other key reforms including the Framework for Tracking Implementation and Performance of Public Investments, the revised Development Committee Guidelines, and the Integrated Bank of Projects, all of which are designed to improve efficiency, accountability, and value-for-money in public investments.
“Each of these reforms plays a key role in enhancing public investment management. I urge you to familiarize yourselves with them and integrate these frameworks into your daily work,” she added.
The Deputy Director of the PIM Centre of Excellence, Prof. Eria Hisali, encouraged participants to actively engage throughout the training and make the most of the opportunity to build their analytical and decision-making capacity. He commended the Ministry of Finance for its continued financial support to the Centre and reaffirmed Makerere University’s commitment to providing high-quality training and research to strengthen public investment governance.
The Manager of the PIM Centre, Dr. John Sseruyange, underscored the importance of the training, emphasizing that the PIM Centre was established to build national capacity in the appraisal, management, and evaluation of public investments. He called on participants to apply the knowledge gained to improve project preparation and implementation within their respective institutions.
Dr. Sseruyange also expressed appreciation to the team of facilitators drawn from Makerere University, MoFPED, NPA, and CRI for their expertise and continued dedication to building Uganda’s human capital for effective public investment management.
The Financial Appraisal and Risk Analysis course is part of a broader capacity-building programme implemented by the PIM Centre aimed at enhancing the skills of public officials in the design, evaluation, and monitoring of development projects to ensure that public investments deliver optimal socio-economic returns for the country.
Business & Management
PIM Centre Holds 9th Steering Committee Meeting, Set to Benefit from World Bank Support
The Public Investment Management (PIM) Centre of Excellence at Makerere University today, October 10th, 2025, held its 9th Steering Committee Meeting to review progress made in the first quarter of the financial year and plan for the months ahead.
The meeting was chaired by Ms. Getrude Basiima, who represented Mr. Hannington Ashaba, Director Budget at the Ministry of Finance, Planning and Economic Development (MoFPED). Ms. Basiima commended the Centre for its continued commitment to strengthening public investment management capacity across government institutions.
In her remarks, Ms. Basiima applauded the Centre for successfully hosting the Public Investment Management Conference held in August at Makerere University. The conference attracted key policymakers, development partners, and academics who deliberated on how to enhance the efficiency, sustainability, and impact of public investments in Uganda.
She further shared exciting news that the Government of Uganda has secured funding from the World Bank to support the public investment management function. The PIM Centre, she announced, will be among the key beneficiaries of these funds — receiving support for the construction and acquisition of a permanent home to enhance its institutional sustainability and training capacity.
Reviewing the Centre’s quarterly performance, Ms. Basiima congratulated the team for successfully conducting three specialized trainings in the first quarter, reaching officials from various Ministries, Departments, and Agencies. These trainings continue to strengthen the technical competencies required for effective project preparation, appraisal, and implementation in line with Uganda’s National Development Plan.
She encouraged the Centre to integrate climate change considerations into its future training programmes, noting that sustainable public investment must now account for environmental resilience and climate adaptation.
The centre team presented the proposed structure/ organogram, the financial performance of 2024/2025, research areas for 2025/2026 and the strategic plan for 2025 – 2030.
The Steering Committee reaffirmed its commitment to supporting the PIM Centre’s vision of becoming a regional leader in building capacity for efficient, transparent, and sustainable public investment management.
Business & Management
Breaking Boundaries in Doctoral Training: COBAMS PhD Colloquium Unites, Equips, and Empowers Scholars
By Moses Lutaaya
Makerere University, COBAMS Conference Hall – Friday, October 3, 2025
In a closing address at the COBAMS Annual Doctoral Colloquium, Prof. Julius Kikooma, Director of the Directorate of Graduate Training (DGT) at Makerere University, urged PhD students to view their research as a vital tool in solving Uganda’s and Africa’s most pressing societal problems.
He reminded students and faculty that doctoral training at Makerere is no longer just an academic exercise, but a strategic national investment.
“PhD is not just about writing a thesis—it is about writing the future of our country, our continent, and indeed our planet,” Prof. Kikooma told participants. “Your research must be part of the solution to the challenges we face as a society.”
Prof. Kikooma began his remarks by reflecting warmly on his longstanding ties with COBAMS, describing it as “home” both professionally and collegially. He praised the college leadership for their foresight in organizing the doctoral colloquium and aligning it with the broader vision of the Directorate of Graduate Training and Makerere University.
He also noted the synergy between the colloquium’s theme and the Directorate’s recent graduate student induction theme which focused on “Positioning Graduate Training in National and Global Trends.” He said that this alignment reflects a growing institutional commitment to making graduate education more responsive to real-world challenges.
Prof. Kikooma emphasized the critical role that doctoral students play in shaping Uganda’s development trajectory.
“While the decision to pursue a PhD is personal, the outcomes of your research must not be. They must become part of our national assets,” he stated.
He encouraged students to look beyond the traditional confines of academia and to consider how their work can inform policy, address community needs, and contribute to sustainable development. In particular, he highlighted urgent national issues such as food insecurity, climate-related disasters, youth unemployment, and underutilized demographic dividends.
“We live in a country where a single flood can disrupt the entire economy. We have fertile soils but continue to face food insecurity. We are a youthful country, but we fear the youth because we lack solutions to productively engage them,” Prof. Kikooma said. “These are problems your research should address.”
Prof. Kikooma also used the platform to announce several ongoing reforms at Makerere aimed at improving the doctoral training experience. These include the introduction of an almanac—a structured academic guide outlining semester-by-semester expectations and milestones for PhD candidates.
He said the reforms were not designed to make the PhD journey easier, but to eliminate unnecessary administrative obstacles and ensure students can complete their programs within the planned three-year period.
“The university is ready for you. We are committed to ensuring that your journey is as smooth administratively as possible,” he affirmed. “But for that to happen, you must play your part.”
Additionally, the Directorate has introduced mandatory credit-based activities beyond thesis writing, such as producing policy briefs and participating in public engagement forums, aimed at equipping students with practical communication and policy translation skills.
Prof. Kikooma proudly noted that Makerere University remains Uganda’s—and the region’s—leading institution in doctoral training. He reaffirmed the university’s commitment to becoming a “trainer of trainers”, emphasizing that no other local institution currently matches Makerere’s capacity in handling doctoral studies.
He called for greater collaboration between students, academic units, and the Directorate, describing DGT as an administrative coordinator that works to support frontline colleges like COBAMS in delivering quality doctoral education.
“We are not just about policy. We are your partners in this journey,” he emphasized. “And together, we can make your research work not just for your academic growth, but for the greater good of the country.”
In his remarks, Associate Professor James Wokadala, Deputy Principal of COBAMS, emphasized the significance of the colloquium, calling it a “timely catalyst” in the academic calendar. He applauded the leadership of the Doctoral School, the Directorate of Graduate Training (DGT), and the organizing team for mainstreaming graduate research into the college’s strategy.
“This initiative aligns perfectly with the university’s focus on graduate training and knowledge regeneration. As a college, we are strategically investing in platforms that enable researchers to contribute meaningfully to academia and society,” Prof. Wokadala said. Drawing from his own PhD journey, he encouraged students to remain resilient and proactive, reminding them that while facilitators provide the spark, “over 90% of the work must be done by the student.”
Prof. Wokadala also paid tribute to Dr. Kasim Sendawula, who was recognized for his voluntary coordination of doctoral activities at both school and college levels. “Dr. Sendawula is a true academic servant — committed, approachable, and selfless. We are grateful for his contribution,” he said.
Prof. Godfrey Akileng, Dean of the School of Business at COBAMS, echoed similar sentiments, applauding the organizing committee and student scholars for their enthusiasm and sacrifice throughout the three-day session. He offered special appreciation to students who, despite personal commitments or distances, showed up without fail. “Some of you paused political campaigns just to be present here. That’s how much this matters,” he noted.
Prof. Akileng formally introduced his graduate coordination team, including Dr. Caroline Twanjire, a recent PhD graduate from Hanyang University in Korea, who will now assist at the school level. He also announced changes in the Master’s coordination team and used the moment to advocate for institutional recognition of voluntary academic roles such as program cordinators. “Mainstreaming these roles in the university structure would enhance efficiency and further strengthen the graduate training ecosystem,” he emphasized.
To the PhD students, Prof. Akileng reaffirmed his commitment. “We are here to serve you. If something is delaying your progress, walk into any school — we are one college, one academic family.”
Dr. Kasim Sendawula, Coordinator of PhD Students at COBAMS, offered a structured evaluation of the colloquium under the theme “Interrogating Knowledge Frontiers: Doctoral Research as a Catalyst for Theory and Practice.” He noted that the program had successfully covered the doctoral journey — from research conceptualization to manuscript development for publication.
“We used a participatory approach that allowed rich engagement with experienced supervisors and presenters. The feedback from students confirms that the structure, content, and delivery were impactful,” Dr. Sendawula stated.
He highlighted key areas appreciated by participants, such as the quality of presenters, sessions on data collection and writing, and the interactive format. Suggestions for improvement included more days, clearer participant evaluation mechanisms, and additional data analysis sessions, which the organizing team committed to explore in future planning.
“This programme has been a success because of your active engagement. Let’s keep the momentum, and we promise to offer you more tailored academic support going forward,” Dr. Sendawula concluded.
Adding the voice of the doctoral students, Ms. Sylvia Namujuzi, Vice President of then newly formed COBAMS PhD Forum, expressed heartfelt appreciation to the university leadership, facilitators, and organizing committee on behalf of the PhD student body. She described the colloquium as “a rigorous but transformative space of learning, reflection, and growth.”
“This gathering has empowered us with insights not just to enhance our academic work, but also to transform our institutions and contribute to society,” she said.
Ms. Namujuzi extended executive committee’s’ gratitude to Professor Edward Bbaale, Principal of COBAMS, for championing the creation of the COBAMS PhD Forum — a unifying platform for scholars across the three schools to collaborate and support each other. She also acknowledged the Dean of the School of Business, Prof. Akileng, for opening the colloquium to the entire college, recognizing the growing need for cross-disciplinary dialogue among PhD scholars.
She thanked the facilitators, both present and in absentia, for generously sharing knowledge, and credited the organizing committee for their tireless work behind the scenes. Special appreciation went to her fellow student leaders, including Mr. Okelo George (President), Mr. Emmanuel Othieno (Finance), and others managing secretarial, coordination, and publicity roles across schools.
Student representative Mr. Vanecious Bbale Kirwana delivered a heartfelt message of appreciation on behalf of the PhD cohort, capping off three transformative days of intellectual engagement, mentorship, and peer collaboration.
Thanking the university and college leadership for both creating and actively supporting the forum, Mr. Kirwana emphasized the importance of in-person interaction, noting how the physical gathering fostered academic bonding and peer support among doctoral students.
Commending the emergence of organic student-led initiatives — such as a newly formed data analysis platform — Mr. Kirwana encouraged further informal groupings and knowledge-sharing spaces among students, building on the momentum of the colloquium.
“Let’s continue to create more spaces for learning among ourselves. That, in itself, is one of the greatest outcomes of this gathering,” he concluded.
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