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The International Growth Centre has highlighted a concerning statistic—merely 0.4 percent of micro, small, and medium enterprises possess the capability to oversee their operations using the internet.
During the seventh Economic Growth Forum, Mr. Jonathan Leape, the Executive Director of the International Growth Centre, underlined that the adoption of information and communication technology among small businesses in Uganda remains quite limited. This low technological utilization places these enterprises in a disadvantageous position concerning cost management, remote work, and monitoring.
Elaborating on this point, Mr. Leape noted that a study by the Uganda Communications Commission revealed that only 0.4 percent of micro, small, and medium enterprises possess advanced technology that can be monitored or controlled remotely through the internet. He emphasized the importance of government support for small businesses to enhance their technological adoption—a factor that drives productivity and job creation.
UNCTAD’s data indicates that Uganda is home to at least 1.1 million micro, small, and medium enterprises, contributing to 80 percent of the nation’s gross domestic product. Within this context, the 0.4 percent represents around 4,400 enterprises that are digitally operational.
Global trends reflect a growing appreciation for technology, influenced by the shift toward digital business operations. The COVID-19 pandemic has further accelerated this shift, compelling numerous businesses to embrace online modes of operation.
Mr. Leape also highlighted the necessity for the government to cultivate a knowledge-based economy, particularly within the services sector. This approach aligns with the overarching economic strategy aimed at boosting productivity, growth, and job creation.
World Bank data underscores the potential of service sectors such as business, finance, and tourism to generate jobs on par with the manufacturing industry. Notably, nearly 30 percent of Uganda’s exports originate from the services sector.
Ramathan Ggoobi, the Permanent Secretary of the Ministry of Finance, emphasized the government’s commitment to achieving not only top-line growth but also inclusive and environmentally conscious growth. He stressed the importance of addressing public demands to create an economy that is not only larger and healthier but also more equitable, sustainable, and just.
