Uganda E-accounting Tool Launched
The Permanent Secretary and Secretary to the Treasury (PSST) Dr. Ramathan Ggoobi who is also the Acting Minister of Finance, Planning and Economic Development has today launched the simplified E-Accounting tool, a digital transformation initiative designed to transition small informal enterprises (SIEs) into high-growth, compliant medium-sized entities.
The tool was developed by United Nations Trade and Development as part of technical assistance to Informality Management for Compliance and Revenue Mobilization (IMCORE) Program.
The PSST said small and medium enterprises are central to Uganda's economy, contributing significantly to employment and income generation.
The informal sector has over 1.8 million micro, small and medium enterprises, mostly operated by women, youth and refugees. They contribute 54.5% of our GDP and account for 92% of employment.
Dr. Ggoobi said a key structural constraint to formalization is weak financial management.
"Without proper records, businesses cannot assess performance, financial institutions cannot trust them and tax compliance remains inconsistent," said the PSST, adding that addressing this is critical to achieving the Ten-Fold Growth Strategy.
He said this tool is a single window solution for both legal and fiscal formalization.
The Director Economic Affairs, Moses Kaggwa said Government will enhance the tool to provide multiple versions in local languages and sector-specific modules, adding that the tool remains free of charge.
“To ensure adoption, MoFPED is committed to facilitating access through electronic tablets and subsidized internet for users,” said Kaggwa, adding that the launch represents the transfer of opportunity, empowerment and digital DNA to the very heart of our economy.
During the handover of the tool to the Ministry of Finance after the pilot testing phase, Elena Botvina, the Economic Affairs Officer, Division on Investment and Enterprise, United Nations Conference on Trade and Development (UNCTAD) said the tool is easily accessible, convenient and cost-effective for business records keeping and reporting.
She said the tool enables better cash management and facilitates expense tracking and revenue increase.
“The ultimate goal of the platform is to facilitate business formalization and capacity building of entrepreneurs,” said Botvina.
During the pilot testing phase,30 small informal enterprises within Kampala were supported. Over 490 SMEs have tried the tool and appreciated its usefulness. 241 have already registered and created accounts on the platform.
