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Want to Expand Your Business? MSME Policy Development for Uganda
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PROGRESS AND ACHIEVEMENTS OF THE PROGRAMME SO FAR The pilot stage of the programme has linked 26 SMEs to six TNCs/local corporates that signed tripartite Memoranda of Understanding (MOUs) to which Enterprise Uganda is a third party signatory. The programme had taken care to include at least 30% women-owned SMEs in the programme. The linkages created/enhanced under the pilot phase were a result of responses to publicity material circulated, discussions with individual targeted companies as well as sensitisation workshops organised by UIA in conjunction with Enterprise Uganda. Sensitisation workshops were organised one for each of the target sectors on the concept of business linkages and the programme design in Uganda: Petroleum Manufacturing Real estate/construction Information Communication Technology (ICT), and Agribusiness. TNCs that were admitted to the programme had to sign MOUs with their partner SMEs and Enterprise Uganda as a sign of commitment to the objectives of the programme, including supporting their partner SMEs to build their competitive capacity. The TNCs that have signed MOUs with SMEs include: NH&CCL - 8 Suppliers Celtel (U) Limited - 2 Super dealers (Distributors) Roofings Limited - 4 Suppliers MTN Uganda - 6 distributors and 4 suppliers Uganda Breweries Limited - 1 supplier cluster Kinyara Sugar Works Limited 1 supplier cluster Business health checks have been carried out on all the 26 participating SMEs. The executive members of the two SMEs that were the first to join the programme Kapchorwa Commercial Farmers Association (KACOFA) and Kinyara Sugar Cane Growers ( KSGL) have been taken through Enterprise Ugandas entrepreneurship development workshop; corporate governance training; and provided with other business advisory services. They have also been assisted to write their Constitutions; to register fully with the Registrar of Companies; and to draw Business and Strategic Plans. UIA has followed up a range of policy issues that have merged during the process of implementing the project, including infrastructure, tax structure, and land accessibility to SMEs, among others.
The first two TNCs to sign up Kinyara Sugar Works Ltd (KWSL) and Uganda Breweries Ltd (UBL) are already a great success. The UBL-KACOFA Business Linkage The MOU signed between Uganda Breweries Limited (UBL) and Kapchorwa Commercial Farmers Association (KACOFA) in June 2006 set in place a framework to upgrade KACOFAs overall business capacity and, in particular, ability to supply UBL with barley on a long-term, competitive basis. This linkage is to benefit over 2000 farmer families who are members of KACOFA. Enterprise Uganda has conducted a Business Health Check on KACOFA A Constitution/Articles of Association have been drawn The Association has been helped to get legal status Corporate Governance Training has been conducted for the executive committee A Strategic Plan and a Business Plan have been drawn and schedules set for their implementation Articles drawn and submitted for registration of the Produce Handling Agency (PHA), the associations trading arm Three-year business plan developed As a result, - KACOFA entered into contract with WFP to supply 5,000 tonnes of maize - KACOFA has been chosen to pilot the warehouse receipt system where producers get premium prices for maize - KACOFA signed a lease agreement, co-funded by WFP, to install cleaning and drying equipment for grain - Two other banks offered KACOFA financing proposals - One big agricultural input supplier has offered KACOFA a proposal to supply inputs on preferential terms The KSWL-KSGL Business Linkage The MOU signed between Kinyara Sugar Works Limited (KSWL) and Kinyara Sugarcane Growers Ltd (KSGL) in September 2005, aimed at improving the business efficiency between KSGL and KSWL. The implementation of MOU has increased the total number of farmers involved from 834 to over 1,500, with the ongoing expansion of the outgrower area to continue over the next 2-3 years. Enterprise Uganda has conducted a Business Health Check on KACOFA Savings and Credit Cooperative (SACCO) registered Board of the Directors and staff received training in corporate governance Strategic plan drawn for next 3-5 years Company articles revised and Entrepreneurship Training Workshop (ETW) conducted for 21 members (leaders, staff and selected ordinary members), plus some members of staff of KSWL Controversy over deduction of withholding tax on payments for sugarcane successfully resolved Not only has KACOFA been able to access working capital, it has also received medium-long term finance from DFCU Ltd for their expansion and modernization of operations.
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© 2007 Enterprise Uganda |
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