Financing Integrated Value Chains can spur growth of SMEs — Experts

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Analysts observe that connecting and supporting each link within a business cycle could go a long way in empowering Small and Medium Enterprises (SMEs) to grow sustainably and seize every available opportunity.

According to Dr Fred Muhumuza, Senior Lecturer at the Makerere University Business School (MUBS), whereas Uganda’s SME sector is the backbone of the economy, they are faced by challenges like inflation, lack of collateral, low digital adoption and limited access to market information.

He explained that financing the entire chain from the farmer in the village to the trader in the market guarantees longevity of the SME. Dr Muhumuza was speaking last week during the launch of the 2025 Tupange Business Ne Equity Nationwide Forums held at Hotel Africana under the theme, “Financing Integrated Value Chains and SME Growth”

“In business, your success is tied to every link in your value chain. If the person who supplies you or buys from you struggles financially, you will feel it too,” Dr Muhumuza noted.

Alluding to the achievements of the Tupange Business Ne Equity engagement that reached over 600 SME proprietors across the country, he highlighted the need for advisory services, financial knowledge, and networking opportunities.

The Tupange Business Ne Equity customer engagements, is an initiative to support regional small and medium enterprises (SMEs) with the aim to address SME challenges and provide support in crucial areas such as credit, innovation, and market access.

The campaign is also in line with the Bank’s effort to support critical sectors to fully recover post-COVID-19 crisis, through its Africa Recovery and Resilience Plan. The critical pillars include agriculture, trade, extractives and oil, manufacturing, MSMEs, social and environmental transformation, and technology-enabled economy.

Olivia Mugaba, Head of SME at Equity Bank Uganda, commended SMEs for literally running the economy, creating seven out of every ten jobs globally.

“At Equity Bank Uganda, we recognise their power and potential, which is why our focus is on financing integrated value chains, helping entrepreneurs manage cash flow, optimise operations, and unlock growth from the top anchor to the last mile. When we empower SMEs, we empower the nation,” Mugaba stated.

She noted that as the 2025 Tupange Business ne Equity edition builds on last year’s success, the target this year is to support over 1,000 SMEs by year-end, through meetings aimed to scale up customer engagements with the retail SME segment at the regional level.

The launch also featured inspiring testimonies from Pastor Robert Kayanja, who spoke highly of the contributions of Equity Bank towards supporting the people of Karamoja.

“SMEs and social enterprises can thrive, and together we can create sustainable solutions that change lives."

The 2024 ‘Abakyala Ku Ntikko’ regional meetings enabled the Bank to interact with women entrepreneurs across Uganda. The engagements align with Uganda’s growth strategy for the new financial year 2025/2026, under the theme “Full Monetisation of Uganda's Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access”.