Share
PUBLISHED ON May 25th, 2015

Little aid for small Ugandan business

KAMPALA, Uganda – Available data suggests that Uganda and the East African Community (EAC) region in general is facing a shortage of mid-level professional skills much needed to develop businesses writes SHARON KYATUSIIMIRE

According to a report by the Ministry of East African Community Affairs in Uganda, technicians, paralegals, and engineering technicians are in short supply to support the emerging Small Medium Enterprises (SMEs).

These shortages and skill mis-matches are contributed to a number of education-related factors.

There are a number of Ugandan engineering firms that run projects in South Sudan, Rwanda, and joint ventures in Kenya and Tanzania. Similarly, many service providers frequently take on temporary consultancies away from their home countries but within the region and beyond. However, the challenge is that the national markets for professional services in the EAC remain underdeveloped and fragmented.

A number of factors explain this. First, there are market access and establishment restrictions in all Partner States. These restrictions and procedures tend to lock out Ugandan professionals wishing to provide services in these countries.

Secondly the policies and regulations governing the various professional services in the different member states differ and have not been harmonized yet.

For example, education standards and qualifications for architects are not the same in all the member states.

In some cases, policies are inconsistent with the EAC integration agenda. Finally, in nearly all partner states, the market is made of unsophisticated clientele who do not understand the value of business services.

Unlike Kenya, which has a bigger economy and a larger private sector, the other countries have similar markets. Typically, in these similar markets there is lack of trust of professionals to provide services to SMEs at competitive rates.

Source: East African Business Week

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.

Leave a Reply

Your email address will not be published. Required fields are marked *