In Uganda Lack of Government Support Stunting Businesses

The Private Sector Foundation Uganda (PSFU) has blamed the narrow government linkages with the European markets for shrinking trading opportunities for the local business community. PSFU executive director Gideon Badagawa said there is need for Uganda to enhance its competitiveness through strengthening government linkages to penetrate the Community market. Addressing journalists at the PSFU offices in Nakasero recently, Badagawa said the Government should create a conducive environment for small and medium enterprises (SMEs) to enable them access the Community market. This, he added, can be done through accessing loans at a lower interest rate from government institutions and training industrial laborers. “It is easy for SMEs to access markets but entry into the Community market becomes difficult due to poor enterprising standards and failure to produce quality products,” he added. Badagawa also blamed the Government for failing to pass the Investment, Counterfeit and Public Partnership Bill, thereby retarding the business sector.He also said sub-standard goods on the local market are killing the economy. Meanwhile, PSFU is organizing a three-day import-export expo starting July 24 at UMA Main Exhibition Hall in Lugogo. The expo will provide SMEs with information on how to build volumes and quality product standards to enhance competitiveness in the Community market. It is also to encourage linkages between small and medium sized companies and multinational enterprises as well as promote skill development and innovation. PSFU trade policy officer Eva Ekanya said the event will link Ugandan businesses with ambassadors representing Uganda’s major trade partners and leading providers of trade-facilitating services.She said consumers, especially the youth, will be sensitive about the benefits of quality Ugandan made products and promotion of unique Ugandan products and services as a means of supporting innovation and enterprises. Source: New Vision
Comments: According to the Private Sector Foundation Uganda, "poor enterprising standards and failure to produce quality products" prevent Ugandan producers to access the Community markets. But why the Ugandan manufacturers cannot upgrade equipment and hire professional management to meet the enterprising standards  and produce quality products? Perhaps the issue lies not only in the poor performance of the Uganda’s government, but also in the fact that Ugandan companies cannot get loans for business development at low interest rates. And those big companies that control the Community market, have almost unlimited access to cheap credits.