The Government has intensified efforts to bring Uganda’s vast informal business sector into the formal economy through the launch of a simplified digital accounting platform designed to improve tax compliance, financial transparency and access to financing for small enterprises.
The E-Accounting tool, launched by the Permanent Secretary and Secretary to the Treasury, Dr. Ramathan Ggoobi, is expected to help informal businesses keep proper financial records, meet legal and tax requirements and position themselves for growth.
Government officials say poor bookkeeping has remained one of the biggest obstacles preventing small businesses from accessing loans, attracting investment and complying with tax obligations.
Dr. Ggoobi noted that although Uganda’s informal sector contributes over half of the country’s Gross Domestic Product and employs millions of people, many enterprises continue to operate outside formal systems due to weak financial management practices.
The digital platform, developed by the United Nations Conference on Trade and Development under the IMCORE Programme, is intended to simplify record keeping for small traders, market vendors and micro enterprises, many of whom are run by women and youth.
Officials say the system will also support government efforts to widen the tax base without introducing new taxes by helping businesses voluntarily transition into formal operations.
During the pilot phase in Kampala, hundreds of small enterprises tested the system, with more than 240 businesses already opening accounts on the platform.
UNCTAD officials say the tool will improve expense tracking, cash management and revenue monitoring, while enabling businesses to build credibility with financial institutions and regulators.
