Ministry of Finance Launches E-Accounting Tool to Formalise Uganda’s Informal MSMEs

Kampala – The Ministry of Finance, Planning and Economic Development (MoFPED) has officially launched a new digital E-Accounting Tool designed to help more than 1.8 million informal micro, small, and medium enterprises (MSMEs) transition into formal, high-growth businesses.

The launch was presided over by the Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, who also serves as Acting Minister of Finance. The tool was developed by the United Nations Conference on Trade and Development (UNCTAD) under the Informality Management for Compliance and Revenue Mobilisation (IMCORE) programme.

Critical gap in financial management

Speaking at the launch, Dr. Ggoobi underscored the central role of MSMEs in Uganda’s economy, noting that they form the backbone of employment and production.

“The informal sector has over 1.8 million micro, small and medium enterprises, mostly operated by women, youth, and refugees. They contribute 54.5% of our GDP and account for 92% of employment,” he said.

He identified weak financial management and poor record-keeping as major structural barriers to formalisation. Without proper records, many businesses struggle to assess performance, access credit from financial institutions, or consistently comply with tax obligations.

“This tool is a single-window solution for both legal and fiscal formalisation,” Dr. Ggoobi added, noting that it aligns with government’s Ten-Fold Growth Strategy.

User-friendly features

The free, web-based platform (accessible at uganda.easyaccounts.org) is designed to be simple and user-friendly, even for entrepreneurs with limited accounting knowledge. It enables MSMEs to:

• Generate financial statements
• Manage cash flow
• Track expenses and revenues
• Improve overall business reporting and compliance

Elena Botvina, Economic Affairs Officer at UNCTAD’s Division on Investment and Enterprise, described the tool as cost-effective and easily accessible. She said it has strong potential to improve cash management and increase revenues for small businesses.

Successful pilot phase

The tool was initially piloted with 30 small informal enterprises in Kampala in collaboration with Enterprise Uganda. Since then, more than 490 SMEs have tested the platform, with 241 users already registering and creating accounts.

Early feedback from users has been largely positive, particularly regarding its simplicity and practicality.

Broader impact expected

The initiative is part of ongoing efforts by MoFPED and UNCTAD to strengthen the capacity of Ugandan MSMEs. Officials believe the tool will accelerate formalisation, improve tax compliance, and expand access to finance for thousands of businesses, especially those owned by women, youth, and refugees.

The Ministry plans to scale up adoption of the platform nationwide in the coming months.

Watchdog Uganda will continue to monitor the rollout and its impact on Uganda’s informal economy.

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