Business managers in western Uganda have urged the government to address prevalent issues weakening the local business environment. The issues include unexplained fees, competition from manufacturers or importers engaging in direct-to-consumer sales, and difficult business registration procedures.
The appeal was made during an engagement organised by the Economic Policy Research Centre (EPRC) to disseminate the findings of the recent Business Climate Index (BCI). The BCI is a quarterly survey that monitors the performance of over 1,000 enterprises across the country. The engagement, held recently at Acacia Hotel in Mbarara last month, attracted business leaders from Mbarara, Fort Portal, Masaka, Hoima, Kasese, Kabarole, Ntungamo, and Bushenyi.
Mbarara City Mayor, Mr. Robert Mugabe Kakyebezi, commended the EPRC for the quarterly survey, stating, “We must know our opportunities and our challenges. This can only be achieved through credible research.”
Ms. Rehema Kahunde, the EPRC Research Analyst and survey coordinator, emphasised the importance of the BCI in informing government policy. “The survey findings are not just abstract numbers — they are your realities,” she said. “What we do at EPRC is to conduct a quarterly analysis of the business environment. Are businesses making sales? Are they hiring or shedding workers? How are the new policies perceived [by business owners and consumers]? We are cognizant of the fact whichever policy comes up; it has an impact on you and your business.”
CALL FOR HELP
Thadeous Karamagi from Kyenjojo inquired whether the responsible agencies take findings from the survey serious. He noted that they would like to see serious action geared toward helping businesses to be better and have a level playing field ensured. “Some businesses have God fathers. Those owned by big people in government get a breather [or unofficial tax breaks] which I do not have. That impacts our operations,” Mr Karamagi said.
For Mercy Kabasiime from Kasese, the biggest threat to small businesses in her community is that importers and manufacturers are resorting to mobile deliveries to reach the final consumer.
“There has been increase of mobile deliveries to the last customer by the [importers and manufacturers] at the same price as retailers. They take the goods from Kampala to the customer in the deepest village. This has cut down on our customers. I have a shop, and I pay taxes. It means I cannot compete with someone not paying anything.”
Isaac Kisa, a participant from Mbarara, called on government to address taxation or fees disparities levied on businesses operating in the same sector. He gave a personal experience where he and a friend, running an identical business, are charged completely different license fees. This inconsistency in fees, he said, is a disincentive in efforts to register with authorities. Komugisha Esther, catering business in Mbarara, echoed Kisa’s concern not that in her operation area, she pays all business taxes but when she asks people in the same business, they seem unaware of those taxes’ existence.
Meanwhile, business owners indicated that they had wrongly perceived the BCI survey as part of intelligence to levy more taxes. They said they were willing to share more about their operations in the subsequent surveys. Mr. JB Bamwenda, a media business operator in Hoima, said: “Previously, when you [survey team] would come to us, we saw you as URA members. We have now realised that the BCI is an important survey, and you will get maximum respect the next time you come.”