Female Ugandan business owners operating in the informal sector are being encouraged to avoid “middlemen” and formally register their companies directly with the government so they can bid for private and public contracts, according to an EastAfricanBusinessWeek report by Samuel Nabwiiso.

Ugandan woman cite bureaucracy and infringement by government agencies such as the Kampala Capital City Authority and Uganda Revenue Authority with deterring formal registration. They say they prefer to operate informally because the cost of obtaining trading licenses from Kampala is high and the different Ugandan tax charges are exorbitant, Nabwiiso reports.

In Uganda, 75 percent of applicants for business registrations are made by males, according to Mercy Kainobwisho, director of business registration at the Uganda Registration Services Bureau.

“Women have tried to start up small and medium enterprises but have failed to secure contracts and tenders to supply goods and services from both government and the cooperate world,” Kainobwisho said.

Apart from opening their doors to the competitive market, formalizing female-owned enterprises opens the door to accessing bank financing and development grants, Kainobwisho said.

Addressing women during a business formalization seminar, Kainobwisho warned women against involving middlemen when seeking business registration services.

Banks in Uganda cannot give loans to unregistered businesses that operate in the informal sector. This stops female entrepreneurs from getting credit, Kainobwisho said.

The government has improved the registration process, making business registration more affordable, accessible and fast, Kainobwisho said. It has also added registration offices around Uganda designed to be one-stop centers where applicants can get all the necessary trading licenses.