The Uganda Registration Services Bureau (URSB) is embarking on a challenging task of registering more than 800,000 businesses within the next three years. This initiative is aimed at supporting the formalization of micro, small, and medium enterprises (MSMEs) across the country.
In pursuit of this ambitious goal, URSB has launched a comprehensive campaign known as “KIRI EASY” to facilitate the online registration of these businesses. The campaign focuses on collaboration with the private sector, the business community, and various agencies to nurture and formalize these enterprises.
The Importance of Formalization
The primary motivation behind this initiative is to address the dominance of the informal sector within Uganda’s economy. Presently, the informal sector accounts for approximately 53.5% of the nation’s economic activity. While the informal sector plays a vital role, it faces significant challenges.
Advantages of Formal Business Registration
| Advantages | Challenges Faced by Informal Businesses |
|---|---|
| Improved access to funds and credit | Difficulty in accessing funds and credit |
| Enhanced bookkeeping capabilities | Lack of structured bookkeeping |
By formalizing these businesses, URSB aims to mitigate these challenges and stimulate economic growth. Formalized businesses are better positioned to access financial resources and credit, while also maintaining improved bookkeeping practices.
In addition to these benefits, formalization aligns with Uganda’s national development objectives, ensuring that businesses operate within a regulated framework.
Stakeholder Engagement
To successfully execute this initiative, URSB has engaged various stakeholders, including commercial officers, business communities, and business support organizations. This engagement is designed to raise awareness about the importance of formal registration and to provide essential information and training on the registration process.
The Greater Masaka region has been a focal point for these stakeholder engagements, serving as a pilot area for the broader initiative. URSB’s collaborative efforts with the private sector and other agencies will be crucial in reaching the ambitious target of registering over 800,000 businesses nationwide within the next three years.
