Social Enterprises Seek Legal Status and Funding

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Social Enterprises Seek Legal Status and Funding
Social Enterprises Seek Legal Status and Funding

Africa-Press – Uganda. Social enterprises across Uganda and the continent have called for legal recognition, improved access to funding and structured standardization frameworks as they prepare for the Pan-African Social Enterprises Summit scheduled for November 19–20.

The summit, organized to position social entrepreneurship as a driver of economic growth and social transformation, will convene social entrepreneurs, investors, policymakers and private sector leaders from across Africa.

Timothy Mugerwa, President of the Federation of Uganda Social Enterprises (FUSE), said the gathering presents a crucial opportunity for the sector to gain visibility and influence policy direction.

“Social entrepreneurship has been marginalized by most governments, yet it plays a critical role in Uganda’s and Africa’s development,” Mugerwa said.

“This summit will spotlight our contributions and push for legal frameworks that recognize and empower social enterprises.”

Mugerwa said lack of dedicated financing remains one of the biggest constraints facing social enterprises, many of which operate hybrid models that prioritize both profit and measurable social impact.

To address the financing gap, organizers plan to launch an African Social Enterprise Fund during the summit, aimed at providing capital to enterprises across the continent.

“Through this fund, we aim to uplift social entrepreneurs, not only in Uganda but across Africa,” he said.

Market access and digital innovation will also feature prominently in discussions, particularly in agriculture. Mugerwa pointed to emerging technology-driven platforms linking farmers to buyers and agricultural input suppliers.

“Technology entrepreneurs are developing apps and platforms that connect farmers to buyers, fertilizers and pesticides,” he said.

“Social entrepreneurs in agriculture add value while considering the impact on the economy, the people and the planet.”

Policy reform and standardization are expected to dominate the policy agenda, with Mugerwa noting that most African countries, including Uganda, do not legally recognize social enterprises as a distinct business category.

“In Uganda, social enterprises aren’t recognized legally, so they are often misunderstood,” he said. “We want governments to create policies and certification systems that help these enterprises thrive.”

Juliet Tumusiime, Chief Executive of Cheveux Organique International Limited and co-founder of Chebo Organic, said identity, funding constraints and regulatory hurdles remain major barriers. Her company manufactures sustainable products from banana fiber.

“One of the biggest challenges is visibility,” Tumusiime said. “There are people doing amazing work, but they do not understand the ripple effect or the impact they are creating.”

She said many social enterprises struggle to clearly define their mission, target audience and intended social impact, limiting their ability to attract investors and scale operations.

Access to capital remains another major challenge. Tumusiime noted that despite operating for ten years, her company continues to face funding difficulties.

“Ugandans are doing extraordinary things, but financial support is still lacking,” she said.

She also cited taxation and compliance concerns as barriers to formal registration, saying some entrepreneurs fear regulatory burdens.

“Some social enterprises fear registering because they worry about taxes,” she explained. “Proper compliance is essential to improve product quality, hire skilled workers and meet export standards.”

Tumusiime further highlighted low public trust in locally produced goods, with many consumers preferring imports despite comparable quality. She urged social entrepreneurs to collaborate, attract investment and compete globally.

“As women, we need to take our seats at the table. Let us be proactive and not fear,” she added, calling for stronger female leadership within the sector.

Organizers say the two-day summit will explore practical solutions, including legal recognition frameworks, certification systems, funding mechanisms and expanded market access.

They hope the event will catalyze partnerships, strengthen continental networks and position social enterprises as central actors in sustainable development.

“This is our chance to define social enterprise as a credible, recognized and impactful sector,” Mugerwa said. “We want policies, funding and platforms that support innovation, growth and social transformation.”

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