Nakakaawa Faith Priscilla
The wholesale trade in Kampala is experiencing a significant downturn, with many business owners struggling to attract customers.
Around this time of the year, traders expect an influx of customers, most especially Christians, as they indulge in the commemoration of the holy week, but things seem to be taking a twist.
Miss Fridah Mbatudde, owner of a wholesale shop in Kampala city, has noticed a decline in sales since last year. “From morning to evening, I’ve only made one sale,” she said, expressing concern about meeting expenses such as rent, electricity bills, and employee salaries.
The decline in sales has triggered an increase in prices, as business owners cite the need to cover business operation costs. Most household items have seen prices increase by double, with local chicken now selling at 60,000 Ugandan shillings and a bunch of matooke now costs 35,000 Ugandan shillings.
Butchers at Nakasero market attribute the price hikes to expensive animal feed purchases and the cost that traders now levy on butcher operators. “We’ve been forced to increase prices because we buy everything expensively,” said Javira Musa, an abattoir operator, adding that, “A kilogram of beef now costs between 14,000 and 15,000 shillings, up from 12,000 shillings.”
Despite some traders’ optimism, many customers are hesitant to make purchases due to high prices. In downtown Kampala, traders reported busy days with inquiries, but many potential buyers walk away when told the price. The trend has left many business owners worried about their future prospects.
Kampala’s business landscape is characterized by challenges and opportunities. Addressing infrastructure constraints, regulatory complexities, and high operating costs can enhance the business environment. Leveraging opportunities in innovation, export-oriented growth, and SME development can drive economic growth and competitiveness.
