Experts worried SMEs are not digitizing

Digital platforms provide unlimited growth opportunities for Uganda’s business community, especially the small and medium-sized enterprises.

However, experts are concerned about the digital road ahead and want more efforts directed towards unlocking the potential of the digital economy. 

This was observed at a digital economic dialogue organized by the Innovation Village and the Federation of Small and Medium-Sized Enterprises in Kampala.

Speaking to this website, Smartson Ainomugisha, a Research Associate at the Economic Policy Research Centre (EPRC), Micro, Small and Medium Enterprises (MSMEs) must leverage digital technologies to reach more customers and in turn spur growth.

“Digital techs offer SMEs with opportunities to streamline processes, access new markets, improve efficiency and enhance customer experience,” 

Saul Weikama from the Innovation Village said MSMEs account for approximately 90% of Uganda’s business sector and 75% of private sector employment.

“Despite the sector’s position, players complain about high taxation, high-interest rates on loans and skyrocketing costs of running a business among others,” he adds. 

According to John Walugembe, the Executive Director, FSMEA a recent survey conducted by FSME among SMEs on the constraints of digital transformation revealed that most businesses in Uganda do not consider digitization as a priority.

It, therefore, highlights that devices pose challenges for operation, data and internet costs remain high and the regulatory landscape remains a stumbling block.