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MSME Policy Development for Uganda


 

Swedish Government funds Business Linkages Pilot Program

WHAT IS THE BUSINESS LINKAGE PROGRAMME?

The Business Linkage Promotion Programme is an initiative of a partnership comprising the Government of Uganda, UNCTAD and UNDP to promote the creation of durable and mutually beneficial business linkages between local corporate companies and affiliates of trans-national corporations (TNCs) on one hand and small and medium enterprises (SMEs) on the other.

It is a two-year programme promoted and implemented by Enterprise Uganda in collaboration with Uganda Investment Authority (UIA), with funding from the Swedish International Development Agency (SIDA) under a cost-sharing arrangement worth US$450,000.

The two-year pilot phase, to last till December 2007, targets to deliver business linkages in Agribusiness, Real Estate Development, Building/Construction Materials, Manufacturing, Telecommunication and Petroleum Distribution.

The programme’s overall aim is to enhance the productive capacity, efficiency, competitiveness and sustainability of TNC-SME business relationships that will create a vibrant private sector in Uganda. It is envisaged that at the end of the pilot period, a sustainable TNC-SME business linkage capability that supports technology transfer via business-to-business linkages, shall have been established in Uganda. This should result into:

• A more dynamic private sector;

• Improved competitiveness of local SMEs, through technological, knowledge and management skills transfer and capital injection;

• Improved micro-economic business environment conducive to the facilitation of business linkages;

• More quality jobs created and/or preserved;

• Presence of TNCs that are more deeply rooted in the local economy; and

• Increased capacity to attract Foreign Direct Investment (FDI) because of successful business linkages and availability of reliable local partners.

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