By David Muwanga
The Uganda Investment Authority (UIA) and Uganda Insurers Association signed a Memorandum of Understanding (MoU) aimed at creating an enabling environment for doing business in Uganda by especially strengthening the intersection between investment and insurance today at the Authority’s head office on Lumumba Avenue.
Mr. Joseph Kiggundu, the Acting Director-General, Uganda Investment Authority, noted that through the on-going relationship with Uganda Insurers Association, from 2016 to 2019, the Authority had already trained an estimated 600 micro, small and medium enterprises (MSMEs) in various sectors across the country and was looking to train even more MSMEs under the new MOU.
“Through this renewed relationship, over 900 MSMEs will be trained in Entrepreneurship skills and sensitized on the benefits of insurance which will ensure long term survival and sustainability of these enterprises,” said Mr. Kiggundu.
He revealed Uganda losses between 606 million dollars to 804 million dollars per year due to pests and diseases, post-harvest handling, and price fluctuations. Post-harvest losses alone account for between 20 and 30 percent of the annual losses.
“Therefore, this MOU, which targets the investment and business sectors in MSMEs play a vital role, also pays particular attention to agriculture and its value chain, given the high level of risks that farmers and MSMEs face, the innovations in this space as well as the utilization of agriculture insurance,” he further said.
“Our aim through this partnership is to use the platform that the Uganda Investment Authority provides to promote the link between investment and insurance for the sustainable growth of MSMEs.
Risk management should be a critical part of every business model and so ensuring that businesses see the value of insurance to protecting and promoting their businesses is important to us” said Mr. Paul Kavuma, Chief Executive Officer, Uganda Insurers Association.
Speaking at the signing of the MOU event, Ms. Winnie Lawoko-Olwe, Director SME, Uganda Investment Authority, further explained that through this specific partnership, MSMEs will have access to various Business Development services including, among others, business registration, enterprise management, and product certification.
“I call upon SMEs to keep their eyes open when we come to their districts, this is a landmark MOU since the government is paying attention to industrialization growth and import substitution,” she noted.
The MOU was signed by the Acting Director-General of the Uganda Investment Authority (UIA) Mr. Joseph Kiggundu and the Chief Executive Officer of the Uganda Insurers Association Mr. Paul Kavuma. Under this partnership, MSMEs in Arua, Lira, Nebbi, and Paidha in Northern Region; Nakasongola and Wobulenzi in Central Region; Busia, Kapchorwa, Mbale, and Soroti in Eastern Region have already been trained.