By Tumwine Byaruhanga
Government has launched a simplified E-Accounting tool aimed at helping small informal businesses improve record keeping, formalize operations and grow into compliant medium-sized enterprises.
The digital platform was launched by the Permanent Secretary and Secretary to the Treasury, Dr. Ramathan Ggoobi, who is also the Acting Minister of Finance, Planning and Economic Development.
The tool was developed by the United Nations Conference on Trade and Development (UNCTAD) under the Informality Management for Compliance and Revenue Mobilisation (IMCORE) Programme.
Speaking at the launch, Dr. Ggoobi said small and medium enterprises remain the backbone of Uganda’s economy, contributing significantly to employment and household incomes.
He noted that Uganda’s informal sector has more than 1.8 million micro, small and medium enterprises, most of them operated by women, youth and refugees.
According to the Finance Ministry, the sector contributes 54.5 percent of Uganda’s Gross Domestic Product and accounts for 92 percent of employment.
Dr. Ggoobi said poor financial management continues to limit the growth and formalisation of many businesses.
“Without proper records, businesses cannot assess performance, financial institutions cannot trust them and tax compliance remains inconsistent,” he said.
He added that the new platform will provide a single window for both legal and tax formalisation.
During the handover of the tool to the Ministry of Finance after the pilot phase, Elena Botvina, an Economic Affairs Officer at UNCTAD, said the platform is affordable, accessible and designed to simplify business record keeping and reporting.
She said the system will support better cash management, improve expense tracking and help businesses increase revenues.
During the pilot phase, 30 small informal enterprises in Kampala were supported, while more than 490 SMEs tested the platform. At least 241 businesses have already registered and created accounts on the system.
