The recently concluded 5th Stanbic Uganda Economic Insights Symposium brought together leading economists and policymakers to examine the theme ‘Globalization Reshaped: Riding the Waves of Economic Shifts’.
The discussions provided valuable perspectives on how Uganda, specifically business people, can position themselves amidst global economic transformations.
Francis Karuhanga, Chief Executive of Stanbic Uganda Holdings Limited (SUHL), emphasized the importance of adapting to global changes, noting that previous discussions had highlighted geopolitical shifts and regional dynamics affecting Uganda’s economy. He underscored the necessity for stakeholders to prioritize insights from such forums to shape effective economic policies.
Entrepreneurs have long been likened to canoes—small, agile, and adept at navigating local waters. However, as global economic currents shift, there’s a need to transform these individual canoes into a formidable ships capable of navigating international markets.
To capitalize on global economic shifts, Ugandan entrepreneurs can focus on several strategic areas beginning with digital transformation. Considering the rapid adoption of mobile devices such as smart phones, embracing digital tools can expand market reach and improve operational efficiency.
The rise of fintech, e-commerce, and AI-driven supply chains enables even small enterprises in Uganda to access international customers. Digital transformation empowers small business owners by enhancing customer experiences, and enabling data-driven decision-making, ultimately boosting growth and competitiveness.
Having your business online not only means reaching a wider audience but it is also the basis for expanding market reach to a global scale. Digital transformation enables SMEs to adapt quickly to changing market conditions and customer demands.
Adopting sustainable practices is another strategy. Sustainable practices tend to reduce energy consumption, lower waste disposal costs, and enable a more efficient use of resources, resulting in significant cost savings.
With a global emphasis on sustainability, integrating eco-friendly practices can enhance competitiveness because it attracts environmentally conscious customers, and helps to ensure the long-term viability of the company.
Uganda’s rich agricultural sector presents opportunities to lead in organic and climate-smart production, appealing to markets that prioritize sustainability. Investors are now putting up several hundreds of millions of dollars in green finance for startups and enterprises that are fully committed to the green agenda.
The African Continental Free Trade Area (AfCFTA) has the potential to boost intra-African trade by 52.3% by eliminating import duties and could double trade if non-tariff barriers are also reduced.
According to the United Nations Economic Commission for Africa, micro, small and medium enterprises, informal traders, youth and women business operators play a crucial role in African trade but are disproportionately impacted by non-tariff barriers due to their limited resources and access to information.
Given that MSMEs create an estimated 80% of employment in sub-Saharan Africa, then the economic potential of the trade area is significant. Leveraging AfCFTA can provide pathways to scale within Africa before entering global markets.
Strategic partnerships and cross-border trade are also essential to transforming SMEs from local operations into regional giants. The opportunities for business are vast across a huge product range, especially for young Africans who embrace innovation and entrepreneurship. Their understanding of modern technologies can also give them an advantage in rapidly changing marketplaces.
Instead of operating in silos, SME owners should come together—pooling resources, knowledge, and networks to build a ship strong enough to withstand economic storms and harness new opportunities. Training, mentorship, and long-term business planning must replace the short-term survivalist approach.
However, government policies play a pivotal role in this transformation. Lowering barriers to business, streamlining export processes, and fostering innovation hubs can catalyze the growth of SMEs. Institutions like the Stanbic Business Incubator Uganda are instrumental in providing capacity building, access to finance, and market linkages, accelerating SME growth.
Waves of globalization are shifting fast. Uganda’s SMEs must decide—will they remain scattered canoes, struggling alone? Or will they come together, build a stronger ship, and chart a course towards sustainable growth and prosperity?
The time to act is now.
