KAMPALA, UGANDA – A new UGX 33 billion (€8 million) project has been launched to significantly boost the capacity of Uganda’s Small and Medium Enterprises (SMEs), with a strong focus on preparing manufacturers to access and thrive in the high-value European Union market.

The four-year initiative, officially named “Sustainable Business for Uganda (SB4U) 2.0 – Trade and Investment Development,” is a partnership between Uganda’s Ministry of Trade, Industry and Cooperatives (MTIC) and the International Trade Centre (ITC), with financial support from the European Union (EU). The project is strategically designed to tackle the primary, non-financial barriers that have long prevented local manufacturers from scaling up and expanding their exports.

For many Ugandan SME manufacturers, producing a quality product is only the first step. Accessing lucrative export markets like the EU—a market valued at approximately $1.4 billion for Uganda—has been hampered by stringent quality requirements, logistical complexities, and a gap in digital readiness. This new project aims to bridge that gap by focusing on three critical pillars: quality standards, e-commerce access, and innovation.

Pillar 1: Meeting Global Quality Standards

A major hurdle for local manufacturers is complying with the EU’s rigorous Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT). These are non-negotiable standards that govern product safety, quality, and environmental impact. The SB4U 2.0 project will provide targeted support to help SME manufacturers:

• Understand and Implement EU Standards: Receive technical training on specific EU regulations, including emerging requirements around sustainability and deforestation-free supply chains.
• Achieve International Certification: Get assistance in acquiring necessary certifications (like ISO, HACCP, or Global G.A.P.) that act as a passport to international markets.
• Upgrade Production Processes: Invest in upgrading factory processes and quality control systems to consistently meet these high standards.

Pillar 2: Unlocking Markets Through E-commerce

The project recognizes the power of digital platforms to connect Ugandan businesses directly with European consumers and businesses, bypassing costly and complex traditional distribution channels. Support in this area will focus on:

• Building Digital Capacity: Training manufacturers on how to build an effective online presence, market their products digitally, and manage customer relations.
• Facilitating Online Trade: Assisting with setting up e-commerce storefronts and integrating secure digital payment systems.
• Navigating E-logistics: Providing know-how on the logistics of international shipping, customs clearance, and last-mile delivery for online orders.

Pillar 3: Driving Competitiveness Through Innovation

To compete on a global stage, continuous innovation is key. The initiative will foster innovation not just in product development but also in packaging, processing, and business models. This includes promoting the adoption of green technologies and sustainable practices, which not only meet EU market demands but also often lead to greater efficiency and lower production costs.

The launch of the SB4U 2.0 project represents a significant, strategic investment in the backbone of Uganda’s industrial sector. By providing SME manufacturers with the technical expertise and tools to meet global standards and leverage digital trade, this initiative offers a clear pathway to increased exports, job creation, and a more resilient and competitive manufacturing industry. SME manufacturers are encouraged to seek out information from MTIC and UMA on how they can participate and benefit from this timely program.