Italy injects sh6.8b to boost Uganda’s private sector

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The government of Italy has set aside €1.7 million (about sh6.8 billion) to strengthen Uganda’s private sector through capacity building, supporting selected value chains, and fostering international partnerships to promote inclusive and sustainable industrial development.

The funds will be channelled through the Strengthening of the Private Sector through the Development of Institutional Capacities and the Building of International Partnerships project under the Ministry of Trade, Industry and Cooperatives.

The two-year project will be implemented by the ministry in partnership with the United Nations Industrial Development Organisation (UNIDO).

While signing the partnership with the Italian Ambassador to Uganda, Mauro Massoni, on October 21, 2025, the Minister of Trade, Industry and Cooperatives, Francis Mwebesa, said that the funding will partly support the establishment of the Confederation of Uganda Chambers of Commerce and Industry, a platform that will bring together all industry associations and chambers under one unified voice.

“The federation will incorporate the manufacturers, the traders, and the small and medium enterprises, and all different associations of trade.

You have the Sugar Council, you have the Grain Council, you have several of them. And the Chamber of Commerce and Industry is a very important organisation in promoting trade,” he explained.

He further noted that under one roof, it will be easier for members to access trade facilitation, including certificates of origin, among other services.

Under this initiative, there will be capacity building for both key actors in the Ministry of Trade and those from the private sector, identification of two to three priority manufacturing value chains with potential for export growth and job creation, value chain analysis, and organisation of international business forums and matchmaking events (for example, in Italy and Uganda), among others.

Mwebesa clarified that the current Uganda Chamber of Commerce is a private entity; therefore, the new one will not interfere with its operations.

He emphasised that the confederation will serve as the apex body and create opportunities for all these associations to collaborate within the trade industry.

Explaining the relevance of the partnership, Massoni said that Uganda has been identified by the Italian Embassy as a priority country through the Italian Development Cooperation, adding that this is the first project the Italian Cooperation will be implementing in Uganda outside the health sector.

He said that traditionally, Italy has been involved in the health sector, and this marks the first time it is venturing into another area, starting with support for private sector growth.

Unlike in the past, where Italy would choose a project to implement in a particular country, under the new plan, Massoni said that beneficiary countries have to request assistance in areas of their choice.

“This plan is saying that all our projects have to be requested by the beneficiary country. It's no longer the other tradition where we would have to propose an idea to you. Now it is up to you to tell us what you need,” he said.

Implementing partners on the project include the Ministry of Trade, Industry & Cooperatives, to lead policy coordination, focal point designation, UNIDO – ITPO Italy responsible for project delivery, UNIDO Uganda country office to lead on-ground coordination, stakeholder engagement, private sector (SMEs & Associations) will make sure that beneficiaries; participate in training, matchmaking, and technical support among others.