Improving the growth and transition of small and medium enterprises in the Greater Kampala Metropolitan Area.

Abstract

Urban areas in Uganda are increasingly facing competition for their resources in the face of rising population. More than one out of every five Ugandans are residing in urban areas and the urban population is expected to triple in next two decades. Most of the urban population resides in GKMA—a region challenged with unemployment and inadequate opportunities. Enhancing firm performance in urban areas offers a promise for jobs and local revenue to boost city development. Local governments and city council need to create mechanisms that address firm constraints and harness the factors that drive firm competiveness, growth and transition. Potential opportunities lie in collaborating with financial institutions to provide affordable credit, improving taxation procedures, establishing of business spaces for the small firms and influencing vocational schools to impact relevant skills.