As in many other developing countries, Ugandan MSMEs play a fundamental role in the economy – accounting for a substantial share of GDP, driving innovation, and employing a large part of the population. However, MSMEs face various risks that often hinder their development and growth.  

MSMEs are underserved by insurance (uptake of insurance is low), an issue that, if addressed, could reduce the impact of shocks on MSMEs and allow them to build assets and manage the risks linked to volatile income. Insurers face supply- and demand-side challenges in serving MSMEs.  

On the supply side, there is a lack of data on MSMEs and their specific needs, which is especially challenging given this group’s heterogeneity. On the demand side, MSMEs distrust insurance companies due to previous negative experiences/word-of-mouth and are not aware of the benefits or value of insurance.   

Cenfri undertook a study to determine potential insurer-provided resilience solutions suitable for MSMEs in Uganda. The research was conducted on behalf of FSD Uganda, with support from UAP Old Mutual, the UK’s Foreign and Commonwealth Development Office (FCDO) and the Bill & Melinda Gates Foundation. 

To better understand different categories of MSMEs in Uganda, the types of risks that MSMEs faced, as well as the product offerings and services that were deemed most attractive, the research process included focus group discussions, qualitative interviews and a quantitative survey.  

Download the report to read the findings and recommendations: