Uganda has unveiled an ambitious plan to grow its economy to $500 billion by 2035, with small businesses at the heart of this transformation. Ramathan Ggoobi, the Permanent Secretary at the Ministry of Finance, shared this vision during a national budget meeting, explaining how helping small businesses grow will create jobs and boost Uganda’s wealth.

The plan focuses on six key areas that will help small businesses succeed. First, the government wants to make it easier for these businesses to get loans by expanding financial services. Many small business owners struggle to borrow money to grow their companies, and this change could help solve that problem.

Second, the government plans to put more money into public banks so they can lend more to businesses. Third, they will build testing labs across the country to help Ugandan products meet international quality standards. This means Ugandan goods could be sold more easily in other African countries and around the world.

The fourth part of the plan involves creating special free trade zones where businesses can operate without paying certain taxes. These zones should attract foreign companies to invest in Uganda while helping local businesses sell more goods abroad.

Fifth, the government will create support systems to help entrepreneurs run their businesses better. Finally, they will introduce measures to reduce the costs of doing business, like making electricity and transport more affordable.

Ggoobi stressed that small businesses are crucial to Uganda’s future. “Helping small businesses grow into bigger, stronger companies is the only way we can reach our $500 billion goal,” he said. Right now, small businesses make up 90% of all companies in Uganda and provide 80% of the country’s manufactured goods. They employ over 2.5 million people and contribute 75% to Uganda’s total economic output.

However, most of these businesses are very small – 93 out of every 100 have fewer than five workers. Only about 4 are small businesses, and just 2 are medium-sized. Ggoobi pointed out that these businesses face many challenges, especially when trying to grow.

One major problem is the high cost of borrowing money. Banks in Uganda charge an average interest rate of 18.6%, the highest in East Africa. This makes it very expensive for business owners to take loans to expand their operations. Other problems include bad roads, unreliable electricity, and expensive internet services, all of which make running a business more difficult and costly.

The government’s new plan aims to solve these problems step by step. By making it easier and cheaper to do business, they hope more small companies will grow into medium and large businesses that can compete internationally. Ggoobi called these challenges “bottlenecks” that must be fixed to unlock Uganda’s full economic potential.

This focus on small businesses comes at an important time. Uganda’s economy has been growing, but not fast enough to create all the jobs needed for its young population. By supporting the businesses that employ most Ugandans, the government hopes to speed up economic growth while reducing poverty.

The plan also connects to Uganda’s hopes of becoming a middle-income country. Middle-income countries have higher living standards, better services, and more opportunities for their citizens. To reach this status, Uganda needs its businesses to produce more valuable goods and services, especially for export.

Experts say the success of this plan will depend on how well it is implemented. In the past, some government programs have failed to reach the small businesses that need them most. This time, officials promise to work closely with business owners to ensure the help actually reaches them.

Business owners have welcomed the plan but say they will judge it by results. Many hope the government will quickly address the high bank interest rates that make loans unaffordable. Others want to see real improvements in infrastructure like roads and electricity.

As Uganda works toward its $500 billion goal, all eyes will be on whether these six steps can truly transform the country’s small business landscape. If successful, the plan could mean more jobs, higher incomes, and better lives for millions of Ugandans.

The coming years will test whether Uganda can turn this bold vision into reality. For now, the message to small business owners is clear: your growth is key to the nation’s future, and help is on the way. The government is betting that by empowering these everyday entrepreneurs, they can power Uganda’s rise to economic prosperity.