Uganda’s private sector is poised for a major boost following the European Union’s announcement of a €1.4 billion (approximately Shs 5.9 trillion) investment package aimed at enhancing trade, productivity, and enterprise competitiveness under the Sustainable Business for Uganda initiative.
The funding—unveiled during the National Catalytic Stakeholder Consultation on the review of the MSME Policy (2015) and the National Standards and Quality Policy held at Four Points by Sheraton Hotel—reaffirms the EU’s long-standing role as one of Uganda’s most influential development and trade partners.
Michelle Walsh, head of the Green Transition and Private Sector Delegation at the EU Mission in Uganda, reiterated the bloc’s commitment to strengthening Uganda’s export capacity, supporting enterprise growth, and creating sustainable jobs. She noted that the Ministry of Trade, Industry and Cooperatives remains a key partner in advancing entrepreneurship and deepening economic cooperation between Uganda and the EU.
Under the Team Europe framework, the EU has prioritised expanding access to affordable financing, upgrading productive and energy infrastructure, strengthening human capital, promoting green employment, enhancing trade standards, and improving governance across Uganda’s business environment.
Walsh highlighted persistent challenges raised by Ugandan businesses—limited financing, unreliable electricity supply, high data costs, certification obstacles, slow digital adoption, and global market shocks—which the EU is addressing through a range of supported programmes.
In the financing sector, she pointed to initiatives such as the Uganda Green Enterprise Finance Accelerator, which supports environmentally friendly ventures in manufacturing, tourism, waste management, mobility, and energy. She also cited the STAR facility’s assistance to agribusinesses, the Yield Fund’s blend of equity and loan financing for growing enterprises, and the EU’s continued contribution to the Agricultural Business Initiative, which strengthens production, processing, and trade.
Walsh further outlined significant EU investments in productive and energy infrastructure, including the rehabilitation of power plants, expansion of rural electrification, upgrades to transmission networks, and ongoing support for renewable energy innovations and energy-efficient technologies for SMEs.
On human capital development, she stressed the need for decent employment and competitive skills. Working with Belgium and other partners, the EU is scaling up vocational training, entrepreneurship incubation, skilling programmes, and financial literacy initiatives—with a deliberate focus on youth and green jobs.
The EU is also supporting Uganda’s efforts to meet international export requirements by strengthening compliance with sanitary and phytosanitary standards, helping local products gain access to European and other global markets. Walsh emphasised the importance of responsible business conduct, especially in agricultural value chains, through support for human rights due-diligence frameworks.
Reaffirming the EU’s long-term partnership with Uganda, Walsh said the bloc will continue working closely with government ministries, the private sector, development agencies, and MSMEs to drive sustainable industrialisation and enhance Uganda’s competitiveness.
“The European Union is very pleased to partner with Uganda to promote competitiveness in international markets and expand opportunities for entrepreneurs,” she said.
She added that the ongoing stakeholder consultations are critical in shaping policies that support the growth of small and medium enterprises.
