Uganda’s private sector is set for an uplift following the European Union’s announcement of a €1.4 billion (about Shs5.9 trillion) investment package aimed at boosting trade, productivity and enterprise competitiveness under the Sustainable Business for Uganda initiative.
The funding, unveiled during the National Catalytic Stakeholder Consultation on the review of the MSME Policy (2015) and the National Standards and Quality Policy held at Four Points by Sheraton Hotel, reflects the EU’s long-standing role as one of Uganda’s most influential development and trade partners.
Michelle Walsh, who leads the Green Transition and Private Sector Delegation at the EU Mission in Uganda, reaffirmed the bloc’s commitment to strengthening Uganda’s export capacity, supporting enterprise growth, and creating sustainable jobs. She said the Ministry of Trade, Industry, and Cooperatives remains a central partner in efforts to expand entrepreneurship and deepen economic cooperation between Uganda and the EU.
Under the Team Europe framework, the EU has prioritised expanding access to affordable financing, upgrading productive and energy infrastructure, strengthening human capital, supporting green employment, enhancing trade standards and improving governance within Uganda’s business landscape.
Walsh noted that persistent challenges highlighted by Ugandan businesses—such as limited financing, unreliable electricity supply, high data costs, certification hurdles, slow digital adoption, and global market shocks—are being addressed through EU-supported programmes.
In the financing sector, she pointed to key facilities such as the Uganda Green Enterprise Finance Accelerator, which backs environmentally friendly ventures in manufacturing, tourism, waste management, mobility and energy. She also referenced the STAR facility’s support for agribusinesses, the Yield Fund’s blend of equity and loan financing for growing enterprises, and the EU’s continued contribution to the Agricultural Business Initiative, which enhances production, processing and trade.
She further highlighted significant EU investments in productive and energy infrastructure, including the rehabilitation of power plants, expansion of rural electrification, improvement of transmission networks, and ongoing support for renewable energy innovations and energy-efficient technologies for SMEs.
On human capital, Walsh underscored the need for decent employment and competitive skills. She said the EU, working with Belgium and other partners, is scaling up vocational training, entrepreneurship incubation, skilling initiatives and financial literacy, with a deliberate focus on youth and green jobs.
The EU is also supporting Uganda’s efforts to meet international export requirements by strengthening compliance with sanitary and phytosanitary standards, opening pathways for local products to access European and other global markets. Walsh emphasised the importance of responsible business conduct, particularly in agricultural value chains, through support for human rights due diligence frameworks.
Reaffirming the bloc’s long-term partnership with Uganda, Walsh said the EU will continue working closely with government ministries, the private sector, development agencies and MSMEs to drive sustainable industrialisation and elevate Uganda’s competitiveness.
“The European Union is very pleased to partner with Uganda to promote competitiveness in international markets and expand opportunities for entrepreneurs,” she noted.
She described the ongoing stakeholder consultations as key to shaping policies that support the growth of small and medium enterprises.
