Recognizing the widespread prevalence of the informal sector in Uganda, the Third National Development Plan (NDPIII) identified addressing this challenge as a crucial pathway to advancing private sector development, promoting inclusive growth, and accelerating the country’s socio-economic transformation.

However, a significant share of economic activity continues to operate outside the formal regulatory framework, constraining productivity, limiting domestic revenue mobilization, and reducing access to financial, business development, and social protection services.

Addressing this challenge therefore remains a critical priority for strengthening the formal private sector, broadening the tax base, and advancing sustainable and inclusive economic development in Uganda.