The Executive Director of Enterprises Uganda, Charles Ocii (left) looks on as the Director for business Advisory department, Rose Mutyabule (right) chat with the state minister for Microfinance in the minister of finance, Planning and Economic development Haruna Kasolo (second right) during the 14th Global Entrepreneurs Week conference at Hotel African Kampala on 15 Nov 2023. Second left is the key speaker from US Mission Uganda, Paul Wilson Junior
HABARI DAILY I Kampala, Uganda I Uganda has become a beacon for entrepreneurial development by removing the requirement for collateral when applying for loans. This visionary initiative, led by Haruna Kasolo, the Minister of State for Microfinance, has propelled Uganda into the forefront of enterprise-friendly territories within the region, unleashing a wave of innovation and business endeavors.
Speaking at the Global Entrepreneurship Week summit, attended by a gathering of over 1,100 entrepreneurs, Kasolo urged perseverance in navigating through these challenges, Kasolo outlined the user-friendly nature of the application process.
He said: “Anyone with a dream just needs to join hands with like-minded people and apply for funding through the many government facilities that have been created.” Entrepreneurs are now able to either collaboratively guarantee each other or individually apply for loans, enjoying remarkably low-interest rates, some as attractive as 10% per year.
At the heart of this economic revitalization is the Micro and Small Enterprises (MSE) Recovery Fund, inaugurated on February 24, 2022, with a mission to provide direct financial assistance to 50,000 MSEs. Kasolo also highlighted additional credit facilities such as Emyoga, Parish Development Model (PDM), and Uganda Development Bank (UDB) loan packages, specifically tailored to enhance economic livelihoods and foster employment opportunities, particularly for the nation’s youth.
Acknowledging the challenges faced by local businessmen in availing themselves of these opportunities, Kasolo attributed the reluctance to the bureaucratic hurdles inherent in traditional banking systems.
In a compelling piece of advice to the youth, Kasolo emphasized the separation of politics and business for success, stating, “You should not mix politics with business if you want to prosper. If you want to fail, do both politics and business.
But if you want to excel, concentrate on business. Avoid wasting your productive time debating politics.” He underscored the importance of prioritizing business plans and focusing on wealth creation.
Addressing concerns about the high mortality rate among new businesses, Kasolo identified the lack of expertise in business sustainability. He lauded the role of Enterprise Uganda, a business mentorship organization, in providing crucial guidance to emerging enterprises.
Charles Ocici, Executive Director of Enterprise Uganda, stressed the significance of strategic planning and customer care for sustainable business success. “You have to structure your business in such a way that it looks at ways to harness opportunities that can bring in funds to ensure its survival,” he advised.
Keynote speaker Paul Wilson, Vice President of the Russell Innovation Center in the US, delivered a cautionary note on mental health challenges, citing a study revealing that over 70% of entrepreneurs suffer from such issues. Wilson urged entrepreneurs to prioritize their well-being for long-term success.
Sandra Letio, a director at the US-based Pelere Group, encouraged entrepreneurs to seek counsel and support from like-minded individuals, recognizing the often isolating nature of entrepreneurship.
Local business leaders expressed apprehensions regarding persistent travel advisories from the UK and US, citing adverse effects on the tourism industry’s recovery from the pandemic.
Ocici, however, remained optimistic about investor resilience and their ability to discern the truth, predicting a positive influx of investments into Uganda once stability is established.
As Uganda positions itself as an entrepreneurial hub, these initiatives are expected to drive economic growth, creating a favorable environment for business development and positioning the nation as a trailblazer in fostering entrepreneurial spirit.
