Government rolls out digital accounting platform for small and medium enterprises
Speaking during the launch, Dr. Ggoobi said small and medium enterprises remain the backbone of Uganda’s economy, contributing significantly to employment creation and household incomes.
The Ugandan government has launched a simplified electronic accounting tool aimed at helping small informal enterprises transition into formal, high-growth and tax-compliant businesses.
The digital platform was launched on Thursday by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury at the Ministry of Finance, Planning and Economic Development, who is also serving as Acting Finance Minister.
The tool was developed by United Nations Conference on Trade and Development under its technical support programme for Informality Management for Compliance and Revenue Mobilisation (IMCORE).
Speaking during the launch, Dr. Ggoobi said small and medium enterprises remain the backbone of Uganda’s economy, contributing significantly to employment creation and household incomes.
He noted that Uganda’s informal sector comprises more than 1.8 million micro, small and medium enterprises, most of them operated by women, youth and refugees.
According to Dr. Ggoobi, the sector contributes 54.5 percent of Uganda’s Gross Domestic Product and accounts for 92 percent of employment nationwide.
However, he said weak financial management continues to undermine the growth and formalisation of many businesses.
“Without proper records, businesses cannot assess performance, financial institutions cannot trust them and tax compliance remains inconsistent,” Dr. Ggoobi said.
He added that addressing poor record keeping is critical to achieving the government’s Ten-Fold Growth Strategy aimed at expanding Uganda’s economy.
Dr. Ggoobi described the new e-accounting platform as a “single-window solution” designed to support both legal and fiscal formalisation for small enterprises.
The system is expected to simplify bookkeeping, financial reporting and tax compliance for informal businesses that often struggle with conventional accounting systems.
During the handover of the platform to the Ministry of Finance, Planning and Economic Development after the pilot phase, Elena Botvina, Economic Affairs Officer in the Division on Investment and Enterprise at UNCTAD, said the tool is user-friendly, accessible and cost-effective for small businesses.
She said the platform enables better cash management, expense tracking and improved revenue monitoring for enterprises.
Botvina added that the digital tool is intended to strengthen business sustainability while helping governments improve domestic revenue mobilisation through increased formalisation.
The pilot testing phase involved 30 small informal enterprises operating within Kampala.
According to officials, more than 490 small and medium enterprises have already tested the system and praised its usefulness, while 241 businesses have formally registered and created accounts on the platform.
Government officials said the initiative forms part of broader efforts to digitize Uganda’s economy, widen the tax base and support the growth of small enterprises into stable medium-sized businesses.
