Enterprise body pushes for legal recognition

What the report says

The Observer reports that the Federation of Uganda Social Enterprises (FUSE) is pressing the government for formal legal recognition of social enterprises, saying the sector is operating in an unclear space between charity and conventional business. According to the article, FUSE officials have been meeting with the Ministry of Trade as part of efforts to develop Uganda’s first national social enterprise policy. The group argues that clearer rules could help impact-driven ventures secure trust, attract investment and understand their tax and operating obligations.

FUSE president Timothy Mugerwa said the current system makes it harder for social enterprises to compete with profit-only businesses. The proposed policy would define the sector more clearly and introduce a verification and certification process. The article says this is intended to reduce “social washing,” where firms present themselves as community-oriented without genuinely pursuing that mission. FUSE also wants a national directory so buyers and investors can identify verified enterprises more easily.

The push for recognition comes ahead of the Pan-African Social Enterprise Summit 2026, which Kampala is scheduled to host in November. The summit, themed around social entrepreneurship and Africa’s social and economic growth, is expected to be used to advance both national policy discussions and broader continental coordination.

The piece also notes FUSE’s campus hub work at five Ugandan universities, where it is encouraging student innovators to build businesses with social impact rather than focus only on traditional employment. Broadly, the report reflects a wider debate in Africa over how governments should classify and support hybrid enterprises that aim to solve social problems while remaining commercially sustainable.