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Want to Expand Your Business? MSME Policy Development for Uganda
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TARGET SECTORS FOR THE PILOT PHASE The programme primarily targets to deliver business linkages in Agribusiness, Real Estate Development, Building/Construction Materials, Manufacturing, Telecommunication and Petroleum Distribution. AGRIBUSINESS SECTOR Uganda is mainly an agricultural country with over 80% of the population relying on agriculture for its livelihood. The linkage potential in the plantation agro-based industries includes: Outsourcing the field operations including seed-bed preparation, harvesting and transportation of freshly harvested crop Supply of produce to processors Maintenance of machinery PROPERTY AND REAL ESTATE DEVELOPMENT In a survey conducted by USAID-Presto Project in 1998, it was estimated that more than 300,000 residential units and offices were needed in Kampala alone and the supply-demand gap has continued to widen. The potential business linkage opportunities here include: Outsourcing of construction components such as roofing, paving, painting, plumbing, etc; Outsourcing of professional services like architectural work and quantity surveying; Supply of building materials; Sub-contracting of complete assignments; and Out-sourcing of non-core house-keeping services like cleaning, catering for staff, repairs and maintenance, and security, compound design. TELECOMMUNICATIONS Since the liberalisation of the telecommunications services, the sector has expanded significantly, particularly with respect to mobile phone usage. The number of telephone subscribers in Uganda has risen, driven by mobile telephones, where increased competition has brought down prices and new connections can be made instantly. There are three major players MTN, Celtel Uganda, and Uganda Telecom. MTN has an in-house programme for up-grading its network of distributors but admits its frequent frustrations due to the absence, amongst SMEs, of business culture expected of utility services providers. The linkage openings in this sector lie in strengthening the distribution networks, a core determinant for further improvement of Ugandas teledensity. Whereas Ugandas teledensity has more than doubled, from 1.07 telephones per 1,000 people in 2000 to 2.25 telephones at the start of 2003, there is need to extend this transformation of the sector further because of its essential contribution to business growth. BUILDING/CONSTRUCTION MATERIALS PROVIDERS The industry is growing very fast and the TNCs that have invested in the sector are willing to have formal partnerships with SMEs. The linkage potential areas include: Distributorship chains, including transportation Supply chains for locally available raw materials like limestone, seasoned timber Sub-contracting of fabrication of steel products from by-products Outsourcing of house keeping activities. GARMENT/TEXTILES Uganda has a few companies engaged in the garment and textile industries. SME linkage opportunities in this industry include: Distributorship chains, including transportation; House keeping services such as fumigation, clearing and forwarding, legal and general consultancy services. PETROLEUM The linkage openings in this sector lie in strengthening the distribution networks for TNCs. The linkage opportunities include: Operation of brand-owned service stations; Local land transportation of petroleum products to the distribution networks; Repair and maintenance of the distributorship premises and equipment which belong to the brand owner oil company; and Non-core activities of Head Office cleaning, security, catering services for staff. OTHER INDUSTRIAL-BASED/MANUFACTURING LINKAGE PROSPECTS The linkage prospects for these manufacturers are numerous but broadly include the following: Up-grading distributorship networks. Outsourcing manufacturing of own-branded items; Supply chains. Click here to Download a Brochure
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