New Absa Bank initiative to boost rural businesses

Absa Bank Uganda has launched a series of Regional SME Forums aimed at boosting entrepreneurship and business resilience across the country. The initiative, under the theme “Partnering to Fuel Growth,’ has kicked off in the western region cities of Masaka, Mbarara, and Fort Portal, delivered in partnership with Tata Motors, Uganda Airlines, DHL, Grant Thornton, and Enterprise Uganda. The training is designed to provide entrepreneurs in seven cities across Uganda with practical knowledge, critical networks, and growth opportunities that go beyond the limits of their immediate communities. “SMEs across the country are innovative and resilient, but they often struggle with challenges that limit their growth, from managing compliance to accessing markets,” said Moses Rutahigwa, the Retail and Business Banking Director at Absa Bank Uganda. “Through these forums, we are connecting business owners to partners who can help them expand their networks, professionalize their operations, and unlock opportunities beyond their immediate reach.” Micro, Small and Medium Enterprises (MSMEs) remain the heartbeat of Uganda’s economy. According to the Uganda Investment Authority, they account for about 90% of private sector employment and contribute more than 80% of the country’s GDP. The Uganda Bureau of Statistics estimates that SMEs employ over 2.5 million people and contribute 20% to national output, with 80% of Uganda’s manufactured goods produced by small and medium-scale businesses. But despite its importance, the SME sector faces persistent challenges. The World Bank notes that more than 70% of SMEs in Uganda struggle to access financing through formal banking channels, while only 20% of small businesses survive beyond their 5th year due to weak governance structures, poor financial records, and limited access to markets. It is against this backdrop that Absa Bank is making a move to take its SME empowerment programs directly to the grassroots. The choice of partners reflects Absa’s focus on tackling the most pressing SME challenges. Grant Thornton is offering guidance on bookkeeping and tax compliance, which remains a stumbling block for many businesses. DHL, a global logistics company, would help entrepreneurs understand cross-border logistics and supply chain management, which is critical given that less than 30% of Uganda’s SMEs participate in export trade. Enterprise Uganda is guiding entrepreneurs on succession planning in a country where only 10% of family businesses are successfully passed on to the next generation. By decentralizing access to skills, finance, and networks, Absa hopes to unlock business potential outside the capital and ensure that regional entrepreneurs are not left behind.