Called informal businesses, these unregistered operations contribute significantly to the overall Ugandan economy as seen in the Ministry of Finance’s 2021/22 Annual Performance Report.
According to this study, these informal businesses are not registered anywhere in the national and local records and do not have private bank accounts, regardless of the study showing that they contribute 29% to the country’s gross domestic product.
The Ministry as a result notes that instead of suing the business legally, it is more reasonable to legitimize it.
The ministry decided that it would be a more effective strategy for the Ugandan economy to streamline the licensing of these unregistered businesses by simplifying the registration process and bringing services closer to the people.
Until now, state governments have begun to ease some restrictive protocols that prevent local business owners from following legal channels.
Several laws regulating business registration have been amended to make it easier for companies to register, go through the insolvency process and facilitate the process of protecting copyright.
according to monitors, news agency in Uganda“early last year, the government launched the Business Development Services Framework which will seek, among other things, to offer non-financial services to help entrepreneurs and informal businesses improve their performance, facilitate access to the market, and increase their ability to compete, for example, business advice, mentoring , incubation and training.
The publication also noted“The Ministry of Finance also noted that the time required to start a business at the end of last year, decreased from four hours during the financial year 2020/21, to three while the cost of starting a business (as a percentage of income per capita) was at 0.03 percent, which is more lower than last year’s target and performance.