Assessing the impact of digitization on business registration and access to business registration information in Uganda

Abstract

This study assessed the impact of digitization on business registration and access to business registration information in Uganda. The objectives of the study were; to assess the current state of digitization of business registration and access to business registration information, to analyze the extent to which digitization has eased business registration and access to business registration information, to examine the challenges faced by users in registering business and accessing registration information, and to assess the measures put in place to ensure integrity of the business registry in the era of digitization. This study employed a qualitative research design, involving key informant interviews and documentary review as the methodology. The study found that Uganda has made significant progress in digitizing business registration through the Online Business Registration System (OBRS), enhancing accessibility and efficiency, particularly in urban areas. However, challenges persist, especially in rural regions where limited internet connectivity, low digital literacy, and system downtimes hinder the effectiveness of the system. While the OBRS has streamlined the registration process and reduced processing times, financial barriers, such as mobile transaction fees and internet costs, remain significant for small businesses. Additionally, the integration of OBRS with other government systems, like the Uganda Revenue Authority (URA) and the National Identification and Registration Authority (NIRA) is lacking, resulting in duplicated data entry and inefficiencies. The study recommends that URSB should reduce or subsidize transaction fees to make the OBRS more affordable, particularly for SMEs, aligning with national development goals. URSB should prioritize robust data privacy measures and regular audits to ensure compliance with the Data Protection and Privacy Act Cap 97, fostering user trust. The study also recommends that nationwide training and sensitization campaigns should be implemented, focusing on rural and semi-urban entrepreneurs to enhance digital literacy and the effective use of OBRS. OBRS should be integrated with other key government databases like URA, NSSF, and NIRA to streamline data sharing, reduce duplication, and improve service efficiency. Regular technical training programs should be implemented to ensure URSB staff are equipped to manage evolving digital services effectively. In addition, collaborations with private technology providers and financial institutions are recommended to enhance OBRS infrastructure and outreach, particularly in underserved areas.