A Bold Step Towards Empowering Uganda's SMEs: Unlocking Potential, One Cohort at a Time
Uganda's economic future is in the hands of its small and medium-sized enterprises (SMEs), and the Uganda Development Bank (UDB) is taking a leading role in nurturing their growth.
But here's where it gets controversial: while financial support is crucial, UDB believes that non-financial solutions are equally vital. And this is the part most people miss—the power of knowledge and skills development.
UDB's Enterprise Development Program (EDP) is a comprehensive initiative designed to transform SMEs into investor-ready entities. Through a hybrid program in collaboration with Makerere University's Business School Entrepreneurship, Innovation, and Incubation Centre (MUBS-EIIC), UDB offers a range of support services to startups and established businesses.
The EDP includes incubation, acceleration, and mentoring initiatives, providing a holistic approach to business development. Regional training, capacity building, and sector-focused master classes are just some of the tools used to empower these enterprises.
In the recent Lira Cohort 2025, 40 enterprises participated in the incubation program, with an impressive 34 graduating after completing the intensive training. These businesses represent a diverse range of sectors, from agriculture to creative industries, showcasing the breadth of Uganda's entrepreneurial spirit.
To date, UDB has incubated 315 SMEs across various regions, with plans to expand its reach further this year. The bank aims to strengthen enterprise capacity nationwide, recognizing the critical role SMEs play in Uganda's economy.
Andama Mahamoud, Director of Investments at UDB, emphasized the importance of SMEs during the graduation ceremony: "SMEs are the backbone of our economy, contributing over 75% to our GDP. We invest in both financial and non-financial solutions to support their growth."
He further pledged UDB's continued support, guiding and mentoring the graduates as they apply their newfound knowledge.
Andama's challenge to businesses to embrace innovation is a call to action. He believes that innovation is not just about new ideas but about turning those ideas into tangible actions that drive growth and impact. He encourages SMEs to collaborate, share knowledge, and form partnerships, as collaboration is the key to unlocking their full potential.
Patrick Ouni, a beneficiary of the program, praised UDB's training, highlighting the transformative impact it had on his perspective. Ouni, who runs Brixton Guesthouse, a hospitality business in Lira, noted the value of the training sessions, especially in discovering his personal sense of purpose in business.
"We learnt the importance of tax compliance and business formalization, which are critical for any business to be bankable. The training equipped us with essential skills in management, governance, marketing, and financial management," Ouni explained.
The EDP's comprehensive approach ensures that participants are well-prepared to navigate the complexities of the market and attract the investment they need. UDB's extensive knowledge of business and its operating environment, gained through funding and monitoring similar projects, forms the foundation of this successful program.
UDB's Enterprise Development Program is a testament to the power of knowledge and skills development. By investing in non-financial solutions, UDB is empowering Uganda's SMEs to become investor-ready, driving economic growth, and creating a brighter future for the country.
What do you think? Is this approach to supporting SMEs effective? How can we further encourage and empower these vital businesses? Share your thoughts in the comments!
