The Ugandan government has taken another step toward bringing informal sector workers into the formal economy by distributing business toolkits and equipment to 1,417 beneficiaries. The handover ceremony, held at Kololo Independence Grounds, was presided over by Esther Davinia Anyakun, the Minister of State for Labour, Employment and Industrial Relations.

The beneficiaries, grouped into 66 Jua-Kali associations, come from 29 districts across the country and include 900 women and 517 men. They are the latest group to benefit from the Supporting Jua-Kali Enterprises to Transition into the Formal Economy (SENTE) Programme, an initiative aimed at creating jobs, improving productivity, and helping informal businesses operate formally.

“The Government of Uganda is investing in you,” Minister Anyakun told the recipients. “This equipment is not for individuals but for group use, as outlined in the Memorandum of Understanding you will sign.” The SENTE Programme has so far supported 781 groups, reaching nearly 24,000 beneficiaries since it began. More than half—56%—of those helped have been women.

The minister pointed to high unemployment, low productivity, and a large informal sector as key reasons for the programme. According to the Uganda Bureau of Statistics, 41% of young people aged 15 to 29 were not in employment, education, or training in 2021. Meanwhile, 92% of Uganda’s working population is employed in the informal sector, which contributes more than half of the country’s GDP.

Despite its importance, the informal sector struggles with challenges such as lack of capital, insufficient skills, and limited access to tools and equipment. Minister Anyakun acknowledged that while the SENTE Programme has led to noticeable improvements in productivity and business growth, some past beneficiaries have failed to use the support effectively.

“We are aware of a few cases where groups have misused the equipment or become inactive,” she said. “We are implementing targeted measures to ensure accountability and provide stronger support.”

She also expressed gratitude to President Yoweri Museveni and Members of Parliament for their financial backing of the programme and called for continued efforts to mobilise communities. The government plans to increase monitoring and expand the programme in the current financial year as part of its broader strategy to drive socio-economic transformation through inclusive employment initiatives.

The SENTE Programme is part of Uganda’s wider push to formalise its economy, reduce unemployment, and improve working conditions for millions of informal workers. By equipping small businesses with the tools they need to grow, the government hopes to create more stable jobs and increase productivity across the country.

For the beneficiaries, the support comes as a lifeline. Many have struggled for years with inadequate resources, relying on basic tools and irregular income. With the new equipment, they now have a chance to expand their businesses, work more efficiently, and eventually join the formal economy.

As the government moves forward with its plans, the focus will be on ensuring that the support reaches those who need it most and that beneficiaries use the resources wisely. If successful, the programme could serve as a model for other African nations grappling with similar challenges in their informal sectors.

For now, the 1,417 new beneficiaries have reason to hope. With the right tools and continued government support, their small businesses could become the foundation of a stronger, more inclusive Ugandan economy.