Small businesses to supply and support large manufacturers under fresh UIA plan in Uganda

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The Uganda Investment Authority (UIA) has launched a nationwide profiling exercise targeting Small and Medium Enterprises (SMEs). The move aims to link them to large manufacturers operating in Uganda’s industrial parks and companies licensed under the Uganda Free Zones and Export Promotions Authority.

UIA says the initiative will strengthen local value chains. It will reduce imports and help locally owned businesses compete better. The Authority wants SMEs to become reliable suppliers of goods and services to large investors.

Speaking at a recent meeting at the UIA offices in Kampala, Eria Kaweireku, Deputy Director of the Domestic Investment Division, said the exercise will identify SMEs that can meet the standards required by large manufacturers.

“Our objective is deliberate linkage,” Kaweireku said. “By connecting local enterprises to established manufacturers within industrial parks and free zones, we are supporting SMEs’ growth while deepening local content participation in Uganda’s industrialization agenda.”

UIA will assess production capacity, technical readiness, certification status and growth potential. Where gaps exist, the Authority will support capacity-building to prepare the enterprises for structured supply chains.

The initiative supports Uganda’s wider industrial development strategy. The government seeks to promote value addition, create jobs and boost exports. UIA believes stronger ties between local enterprises and manufacturers will build a more inclusive and resilient industrial sector.

Kaweireku Eria added that UIA is using a cluster-based approach. It focuses on four priority sectors: agro-processing, wood and furniture, textiles and garments, and pharmaceuticals.

“SMEs within these sectors will be linked to market off-takers through subcontracting arrangements and structured supplier development programs,” he alluded.

The project is now in its pilot phase. It is mapping women in processing and formally registered SMEs that meet set criteria. These include a minimum annual revenue of USD 30,000 and at least five employees.

Elizabeth Kasenene, President of the African Women in Processing (AWIP) Uganda Chapter, said structural barriers have long limited women entrepreneurs in industrial development. She called for deliberate efforts to remove these obstacles.

Kasenene Elizabeth said the AWIP Industrial Park model provides subsidised and certified factory space. It also offers shared processing facilities, tailored financial support and structured production clusters linked to guaranteed offtake agreements.

She described government endorsement of the model as a major breakthrough. She said it places women at the centre of production, innovation and industrial transformation.

The AWIP Uganda model is expected to create jobs, boost value addition and strengthen domestic supply chains. It also aims to position women-owned businesses to compete within the African Continental Free Trade Area.

Peter Kuria, an African Union Tech Expert, praised the Government of Uganda for its leadership. He reaffirmed support from the African Union Commission, regional economic communities, development partners and the private sector to ensure full implementation of AWIP Industrial Parks across the country