Uganda's small and medium enterprises (SMEs) are the lifeblood of its economy, but they often face significant hurdles. The Uganda Development Bank (UDB) is stepping up to help, and the results are promising!
On October 20, 2025, UDB's Enterprise Development Programme (EDP) celebrated the graduation of its Mbale cohort of SMEs. The program is designed to equip these businesses with the skills and knowledge they need to become investor-ready. This is crucial because, as we'll see, many SMEs struggle to survive.
The EDP offers practical training and advisory services using a hybrid model. This means a blend of in-person and online learning, and it's all done in partnership with Makerere University Business School’s Entrepreneurship, Innovation and Incubation Centre (MUBS-EIIC). Think of it as a business boot camp, but with a focus on real-world application.
In the Mbale Cohort of 2025, a total of 32 enterprises were incubated, and an impressive 28 successfully graduated after completing the intensive training. These businesses came from diverse sectors, including primary agriculture, manufacturing, agro-processing, education, health, tourism, and ICT. This variety highlights the wide range of entrepreneurial potential in Uganda.
Participants underwent a two-month training course and received certificates upon completion. The program's core goal is to nurture private enterprises through targeted training and mentorship. This helps them enhance their capacity and prepare them to access financing from UDB and other financial institutions.
But here's where it gets interesting: UDB isn't new to this. They've already incubated 275 SMEs in previous cohorts held in Kampala, Gulu, and Arua. And they're not stopping there. The bank plans to hold similar regional training sessions in Lira, Mbarara, Fort Portal, and Masaka to further strengthen enterprise capacity across the country. This expansion shows a commitment to supporting SMEs nationwide.
Dr. Francis Mwesigye, Director of Economic Research and Knowledge Management/Chief Economist at UDB, emphasized the importance of this initiative during the graduation ceremony. He stated, "The SME sector is the engine that drives growth in our economy, which is why we focus on empowering it." He also noted that the program equips entrepreneurs with the knowledge and tools they need to start, strengthen, and scale their businesses, ultimately helping them thrive in a competitive market.
And this is the part most people miss: SMEs are incredibly important to Uganda's economy. Dr. Mwesigye pointed out that they make up 90% of the private sector, contribute about 80% of manufacturing output, and employ over 2.5 million people. However, a sobering statistic is that only about 30% of these businesses survive beyond their third year. This highlights the critical need for programs like the EDP.
One beneficiary, Richard Magola, Proprietor of Richie Hotels and Safaris, shared his experience. He stated that before joining the EDP, his business was informal, unregistered, and lacked proper records. After completing the training, he now runs his business efficiently, has a business proposal, keeps organized records, pays taxes, and sees the benefits of professional management. This real-life example showcases the tangible impact of the program.
The EDP provides essential skills in various areas, including management, corporate governance, record-keeping, risk management, marketing, human resources, and financial management. This comprehensive approach helps participants navigate market challenges and attract investment for growth. The training draws on UDB’s extensive experience in funding, implementing, and monitoring business projects.
The program is a collaborative effort, with partnerships including the Uganda Registration Services Bureau (URSB), Uganda National Bureau of Standards (UNBS), Uganda Revenue Authority (URA), Uganda Investment Authority (UIA), National Social Security Fund (NSSF), and Uganda Women Entrepreneurs’ Association Limited (UWEAL). This network of support is crucial for the success of the EDP.
What do you think? Do you believe that programs like the EDP are essential for the growth of Uganda's economy? Are there other challenges that SMEs face that need to be addressed? Share your thoughts in the comments below!
