The Uganda Investment Authority (UIA) has stated that it has established a domestic investment division with the responsibility of assisting small and medium-sized companies (SMEs) in formalizing their businesses in order to turn them into local investors.
Speaking at the launch of the 2022 Top 100 Medium-Sized Company Survey at the Sheraton Hotel in Kampala on Wednesday, Mr. Paul Kyalimpa, the UIA deputy director general, said they restructured the SME division and created the domestic investment division so that companies identified as investors are helped to access government services.
“To be an investor, you must be registered as an individual or company. There are benefits which accrue to a registered entity when they register to pay taxes such as Corporate Tax and Pay As You Earn, and as an investor, you get an investment licence from government, which should give you some services free of charge,” he said.
When asked what incentives such entrepreneurs stand to gain by formalising their businesses, Mr Kyalimpa said after government profiling them, having their accounts audited and filing tax returns, UIA will link them to 15 government agencies, including Uganda Development Bank, National Social Security Fund, National Water and Sewerage Corporation, National Environment Management Authority, and to other companies which can enable them acquire skills and expertise to participate in big businesses.
The establishment of the domestic investment division, according to Mr. Peter Kyambadde, a tax partner at auditing firm KPMG, is evidence of UIA’s commitment to the alliance with Nation Media Group, KPMG, and dfcu Bank to realize the goal of identifying rapidly expanding SMES and assisting them in transitioning from being medium-sized to multinational companies.
“Previously, there were concerns that domestic investors were not given specific focus but creating a division to look into that is to ensure that there is growth of investment in the country,” he said.
The annual Top 100 Medium-Sized Company survey, now in its 14th year, is a collaboration between KPMG and Nation Media Group that aims to find and highlight business excellence as well as to spotlight some of the most inspiring entrepreneurship stories in the area. This effort only invites volunteer participation.
With the exception of banks, insurance businesses, accounting firms, financial consulting firms, and publicly traded companies, the company must have an annual turnover of between Shs360m and Shs25b to be eligible to participate.
Mr Tony Glencross, the managing director of Nation Media Group-Uganda, the Monitor has had an impact on society and the economy over the past 30 years. According to him, the survey did not take place in 2020 or 2021, like other economic sectors that were closed down as a result of the Covid-19 pandemic. However, last year, researchers concentrated on research on sustainable business models following the onset of the pandemic so that businesses are found to be resilient the next time a similar situation arises.
The Survey
The 2022 survey began yesterday and runs through October 31. All qualified SMEs are eligible to participate.
