The Government of Uganda has launched a simplified electronic accounting platform aimed at helping small informal businesses transition into compliant, growth-oriented enterprises with an aim to strengthen domestic revenue mobilisation and accelerate economic transformation.
The new E-Accounting Tool was launched on Thursday by Ramathan Ggoobi, who was acting as Minister of Finance, Planning, and Economic Development at the event.
Developed by United Nations Conference on Trade and Development under its technical support to the Informality Management for Compliance and Revenue Mobilisation (IMCORE) Programme, the digital platform is designed to simplify bookkeeping, improve business records and support enterprises seeking legal and tax formalisation.
Speaking during the launch, Ggoobi described small and medium enterprises as the backbone of Uganda’s economy, noting that they continue to play a critical role in employment creation and income generation.
According to figures shared at the event, Uganda’s informal sector comprises more than 1.8 million micro, small and medium enterprises, largely operated by women, youth and refugees. Collectively, the sector contributes 54.5 per cent of the country’s Gross Domestic Product and accounts for about 92 per cent of employment.
However, Ggoobi observed that poor financial record keeping remains one of the biggest barriers preventing many businesses from growing and entering the formal economy.
“Without proper records, businesses cannot assess performance, financial institutions cannot trust them and tax compliance remains inconsistent,” he said.
He added that improving financial management practices among small enterprises will be critical in delivering Uganda’s Ten-Fold Growth Strategy and expanding the country’s productive capacity.
The newly introduced platform provides a single digital window through which businesses can manage accounting records while also supporting legal and fiscal formalisation processes.
During the official handover of the system to the Ministry of Finance following the completion of the pilot phase, Elena Botvina said the tool was intentionally designed to be accessible, convenient and affordable for small businesses.
She explained that the platform enables entrepreneurs to improve cash management, track expenditures more efficiently and strengthen revenue growth through organised financial reporting.
Results from the pilot phase indicate strong early adoption. Thirty informal enterprises in Kampala participated in initial testing, while more than 490 small businesses have since experimented with the platform. Of those, 241 enterprises have already registered and opened accounts.
The adoption of the system will deepen financial inclusion, strengthen compliance and create a pathway for thousands of informal businesses to evolve into sustainable medium-sized enterprises.
