At the 9th Economic Growth Forum, Prof. Vittorio Bassi of the University of Southern California emphasized that Uganda’s growth agenda can be accelerated through the National Planning Management Strategy by prioritizing agro-industrialization, tourism, mineral industries, and science and technology.
The forum is underway at Kampala Sheraton Hotel under the theme, “Enhancing Uganda’s competitiveness and growth amid a change global economic environment.”
“The key is to grow larger and more productive firms,” Prof. Bassi said, adding that evidence shows such firms “pay higher wages and drive economic transformation.”
He noted that Uganda’s economy is dominated by small and medium enterprises (SMEs), which remain less productive compared to larger firms. According to him, four major constraints hinder SME growth: limited access to finance, markets, technology, and skilled labour.
On access to finance, he pointed out that while many SMEs demonstrate high returns to capital, they remain credit constrained.
“Banks often view SMEs as risky and costly, especially in agro-processing, leaving a financing gap for mid-sized firms,” he observed.
Prof. Bassi welcomed initiatives such as ASELI, which incentivize banks to lend to agri-SMEs, and suggested exploring revenue-based contracts and developing a stronger local equity market, noting that “most start-ups in Uganda still depend on foreign capital.”
Drawing from international examples, he highlighted Nigeria’s successful national business plan competitions, which identified and supported high-growth entrepreneurs. “Such targeted interventions could help Uganda nurture firms that create jobs and drive long-term growth,” he said.
On markets, Prof. Bassi stressed that Ugandan firms often operate below capacity and need support to expand both locally and internationally. He said, “Policies that ease access to capital for market entry and connect SMEs with buyers—including through digital platforms—are essential.”
Regarding technology, he emphasized the transformative potential of digital tools such as internet access, mobile money, and artificial intelligence, but warned that low digital literacy remains a barrier.
“Investment in digital readiness is critical to ensure firms and households can take advantage of new technologies,” he remarked.
Prof. Bassi also underscored Uganda’s persistent skills gap, citing evidence that certified vocational training significantly improves employment outcomes, even during crises like #COVID-19. “Scaling up certification systems, including recognition of prior learning, and involving firms in training will improve worker-firm matching,” he said.
He concluded his address by outlining nine priority reforms: lowering lending costs, introducing revenue-based contracts, fostering equity markets, supporting business plan competitions, improving market access, reforming procurement systems, investing in internet infrastructure, promoting digital literacy, and strengthening certified training.
“These reforms offer a clear pathway for Uganda to boost productivity and achieve sustained economic growth,” Prof. Bassi affirmed.
