Compliance in Banking Industry: A Game-Changer for Ugandan Businesses

In today’s fast-paced business landscape, compliance is no longer just a mere requirement but a crucial aspect of success. In Uganda, the banking industry is not an exception, with regulators and stakeholders emphasizing the importance of compliance in ensuring the stability and growth of the sector.

What is Business Compliance?

According to Joel Bamwise, Program Manager at Stanbic Business Incubator Limited (SBIL), business compliance refers to “the art of following laws, regulations and existing laws and regulations of a country that govern business activities.” It also encompasses ethical practices that every normal business should be able to carry out, such as safety compliance to protect employees.

Benefits of Compliance

While the compliance process may seem daunting, Joel highlights its numerous benefits. For instance:

Being in good standing with governing authorities can help businesses scale up as value chain suppliers and win new opportunities.
A tax clearance certificate is a mandatory requirement for bidding on new projects.
Compliance can also foster staff loyalty by providing access to government-supported benefits.
Accurate revenue tracking simplifies the planning process and supports expansion.

The Compliance Process

Joel breaks down the compliance process into three clear steps:

Registration with the appropriate authority: This involves registering your business with the relevant authorities, such as the Uganda Registration Services Bureau (URSB).
Obtaining necessary licenses: This includes obtaining any required licenses or permits to operate your business legally.
Paying taxes and dues: This involves paying all applicable taxes and dues on time.

How SBIL Can Help

SBIL has been successful in guiding various businesses to fulfill their compliance obligations and unlock these benefits. The incubator provides:

Lessons, coaching, and mentoring to navigate the compliance process
Masterclasses to develop a growth plan that takes advantage of opportunities available to compliant businesses
Access to industry regulators, including URSB and URA officials, for real-world advice on improving compliance

Programs and Support

SBIL offers various programs to support businesses in need of guidance, including:

Kampala Enterprise Development Program
Network For Innovation and Sustainability in Agriculture and Tourism
Regional Enterprise Development Program

These programs provide valuable insights from regulatory leaders and tools to register and conduct compliance checks. Participants also engage with partnered legal firms that provide expertise in enabling businesses to make informed decisions about their compliance needs.

Conclusion

In an increasingly competitive market, Joel emphasizes the importance of compliance in the banking industry, highlighting its role in ensuring business success and growth. As Uganda’s economy continues to grow, it is essential for businesses to prioritize compliance to remain competitive and achieve long-term sustainability.