The private sector encompasses all for-profit businesses that are not owned or operated by the government which differs from public sector that involves Companies and corporations that are controlled by the government. Uganda’s Private Sector is dominated by Micro, Small and Medium Enterprises (MSMEs) comprising approximately 1,100,000 enterprises and employing approximately 2.5 Million people equivalent to 90% of total non-farm private sector workers and versatile in most of the sectors of the economy. The private sector as a key partner to Government is recognized as having a critical role in the process of developing Uganda’s development goals and aspirations.
Private sector plays an important role as an engine of economic growth and job creation. It provides goods and services, generates tax revenues to finance essential social and economic infrastructure, develops new and innovative solutions that help tackle development challenges and it is a central actor in addressing climate change. However, Ugandan firms face various growth and survival constraints which undermine the private sector led growth such as limitations to competitiveness and high cost of doing business which negatively impact on productivity.
Uganda’s private sector should serve as the key driver for the development of the Ugandan economy by providing domestic and foreign investments which can contribute directly to the economic development of the country. Private sector in Uganda is significantly dominant across different sectors which include trade, construction, manufacturing, and services (hospitality, entertainment, finance, health, education, professional services and ICT).