The Federation of Small and Medium Enterprises has welcomed the government‘s decision to halt trade order operations pending further consultations.
On April 23, 2026, the Minister of State for Industry, David Bahati, informed Parliament that the Government would halt operations pending further consultations.
John Walugembe, Executive Director of FSME, commended the Government for its timely response to a recent petition regarding the trade order.
The federation had earlier called on the government to suspend its nationwide trade order enforcement operations. It warned that the aggressive demolitions are devastating livelihoods and undermining economic stability.
Following the suspension, Walugembe has recommended that the government constitute a multi-stakeholder taskforce which includes MSMEs, Traders and relevant ministries to develop a coherent strategy on trade order with clear objectives.
He further appealed to the Government, through the Ministry of Local Government, to conduct extensive consultation with MSMEs and Traders and identify alternative workspaces.
“We further appeal to local authorities to finalise local trade order strategies in consultation with key stakeholders. We advocate that Local Governments, Municipalities, and Cities invest in extensive awareness and communication campaigns to educate traders and MSMEs about the benefits of trade order and formalisation,” said Walugembe:
He noted that beyond market spaces, the Government should consultatively work on an extensive plan to develop workspaces and common user facilities for MSMEs.
“These go beyond markets, as not all MSMEs can operate in markets. These workplaces are static, but the occupants are ever-changing. Many MSMEs would start in shared workspaces and then move to their own facilities when they are confident enough to invest.”