Ugandan Government to Organize Evicted Traders into Trade Associations

In an effort to streamline and regulate the informal trading sector, the Ugandan government, through the Ministry of Trade, Industry and Cooperatives, is developing a strategy to organize recently evicted traders into formal associations.

According to Patrick Mugisha, Commissioner for Business Development and Quality Assurance at the Ministry of Trade, the recent countrywide Trade Order exercise, which saw traders removed from unauthorized locations, was underpinned by research. A study by the Economic Policy Research Centre indicated that the informal sector’s contribution to Gross Domestic Product (GDP) was 54.5 percent in the 2024/2025 financial year.

Mugisha emphasized that such initiatives are crucial for ensuring that businesses operate within established policy frameworks. He further explained that research from the Ministry of Finance and the World Bank suggests that incentivizing the informal sector’s transition to formality can be a powerful engine for economic growth.

“These businesses can be monitored and regulated if they are registered under recognised associations like the Kampala City Traders’ Association,” Mugisha stated, highlighting the government’s aim to mitigate revenue losses stemming from the sector’s informality.

This push towards formalization aligns with a recently launched program to certify informal electrical practitioners. Spearheaded by the Royal Academy of Engineering and 3N Engtech Innovations Consultancy, this initiative seeks to formally recognize electricians who have acquired their skills through on-the-job training and practical experience rather than formal education.

Annet Nsiimire, a project representative, noted that a significant portion of Uganda’s workforce operates within the informal sphere. The project aims to create a database of these electricians, offer them formal training opportunities, and ensure they can be readily engaged for professional work. Collaboration with the Ministry of Education, the Electricity Regulatory Authority, and the Ministry of Labour is planned to facilitate this training.

This strategy aims to foster a more structured and regulated informal economy, thereby enhancing its contribution to national development. The government believes that organizing these traders into associations will facilitate better oversight and support, ultimately benefiting both the traders and the broader economy. This effort signifies a step towards integrating a vital, yet often unorganized, segment of Uganda’s workforce into the formal economic structure.

Source: Daily Monitor (Uganda)