Uganda Today: Uganda Launches UGX 33 Billion EU-Funded Trade and Investment Project to Empower SMEs
By Uganda Today Reporter | Published on www.ugandatoday.co.ug
Kampala, Uganda — In a bold move to bolster Uganda’s Small and Medium Enterprises (SMEs) and deepen trade relations with the European Union, the Government of Uganda, through the Ministry of Trade, Industry and Cooperatives, has launched a UGX 33 billion (EUR 8 million) Trade and Investment Development Project aimed at sustainable economic growth, exports expansion, and green job creation.
The four-year initiative — officially unveiled in Kampala — is funded by the European Union and implemented by the International Trade Centre (ITC) under the “Sustainable Business for Uganda (SB4U) 2.0 – Trade and Investment Development” framework. Running from 2024 to 2028, the project seeks to enhance the competitiveness of Uganda’s SMEs both regionally and globally, with a spotlight on the EU market.
Targeting Key Growth Sectors
The project will prioritize Uganda’s high-potential sectors including tourism, logistics, and grains, while also building capacity in e-commerce, quality compliance, and innovation adoption. The overall goal is to improve the country’s business environment, enable sustainable trade, and tap into existing tariff-free access to EU markets under existing trade agreements.
Speaking at the launch, Hon. Francis Mwebesa, Minister of Trade, Industry and Cooperatives, emphasized the transformative potential of the initiative:
“This project is an enabler for the Government of Uganda to facilitate our private sector to seize more opportunities in regional and global markets. The objectives align with the National Development Plan IV, aiming to increase household incomes, full monetization of the economy, and employment for sustainable socio-economic transformation,” he said.
He added that the project also aligns with Uganda’s ambitious ten-fold growth strategy, which envisions increasing the national economy from USD 50 billion to USD 500 billion by 2040.
Strengthening Uganda-EU Trade Relations
The EU Delegation in Uganda reaffirmed its commitment to fostering trade and investment partnerships. Ms. Sanne Willems, Team Leader at the EU Delegation, noted:
“With this EUR 8 million investment, we are confident that together we will strengthen Uganda’s trade and investment profile, especially in the tourism, logistics, and grains sectors. The EU remains a key partner in bringing Uganda’s high-value products closer to the lucrative European market.”
Uganda’s current exports to the EU stand at USD 1.4 billion, and the project is expected to contribute significantly to scaling this figure by empowering SMEs with tools to meet international standards, navigate export protocols, and embrace digital trade platforms.
Focus on Sustainability and Green Jobs
Pamela Coke-Hamilton, Executive Director of the ITC, underscored the importance of sustainability and inclusivity in the project’s second phase:
“We’re going to see a stronger trade relationship between Uganda and the EU, placing sustainability, digital connectivity, and job creation at the heart of economic growth. More small businesses in Uganda will be able to scale, export, and generate employment.”
The project’s six-month inception phase, which began in early 2024, engaged key stakeholders across public and private sectors to ensure that the implementation meets Uganda’s strategic needs.
Broader Continental Integration
Beyond EU-focused trade, the project also aims to strengthen Uganda’s trade with neighboring countries and contribute to the successful implementation of the African Continental Free Trade Area (AfCFTA) by harmonizing trade policies and standards.
As Uganda positions itself as a competitive player in regional and global markets, this project is expected to serve as a blueprint for how strategic partnerships and targeted investment can empower SMEs — the backbone of Uganda’s economy.
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