E-commerce firms in Uganda have officially launched their umbrella, E-Trade and Startup Association of Uganda, a rational initiative that helps organizations and startups unlock the potential of the trade.
Founded by four start-ups of SafeBoda, Jumia, Tugende and KTA, the association was commissioned by Dr. Chris Baryomunsi, the Minister of ICT and National Guidance at an event held at Fairway Hotel in Kampala, on Friday September 23, 2022.
The four founding members would later invite others to strengthen the voice of all those harnessing the power of finance technology (FinTech) to create one strong voice in expanding and sharing the immense potential and opportunity in the e-commerce space.
Baryomunsi, represented by his junior minister, Godfrey Kabbyanga commended them for coming up with an association noting that the government is always challenged with dealing with so many voices.
“Now that you are one voice, we shall know who to go to. Strength this association so that the voice can be stronger.”
He noted that “E-Trade is the new normal and it’s not going back, so you either catch up and become digitally alert but if you remain analog, you are finished.”
The minister said that as government, their work is to create an enabling environment, ensure there is peace and security in the country, good laws that and also to ensure there is good infrastructures and “yours is to harness these and do business.”
He reminded that Ugandan economy now is private sector-led, calling on the youth to be innovative.
Baryomunsi assured the association of the government’s commitment to working with them closely “because our main agenda is digital transformation. We are going to give you maximum support!”
In cooperation with the business for eTrade and Startup development, a private-sector-led advisory council that encompasses large corporations and small businesses from within Uganda, E-Trade and Startup Association of Uganda fosters inclusive development by promoting the uptake of e-commerce amongst its members. Through joining the platform, organizations can connect with potential partners, learn about trends and best practices, access up-to-date e-commerce data, and be informed of upcoming e-commerce events, fund raising, among so many benefits.
Speaking on the launch, the Chairperson of the Association, Mr. Ron Kawamara – CEO Jumia Uganda said that the association has come at the right time when e-commerce is on its way to growth and development especially in Uganda, noting that as key players, they need to unite and work closely.
“This will help mold and create the future we need as far as ecommerce is concerned.”
Ugandan enterprises urged to explore regional oil and gas opportunities“We compete but have one thing in common. We want the e-commerce space to grow, we want to compete for a huge pile,” he said.
Kawamara says the E-Trade association started out of necessity since they receive many of the government regulation.
“During Covid-19, we faced lockdown which was 6pm curfew for motorcycles, then we had OTT, the Facebook ban, the introduction of digital sales tax and more recently the UCC notice. Now, the cause of all those actions, we came together so that we can have a voice and I tell that almost all those challenges expect Facebook, we managed to convince government.”
He says that they had to bring most of the startups on board “because we want to make sure the smaller startups coming up don’t repeat the mistakes that we did. We want to make sure that our voice becomes much bigger.”
He encouraged all organizations, companies and startups that operate under the industry should join the association since through connection and collaboration, this will help drive policy making, uplift the customer experience and attract revenue generation amongst members
Kenneth Muhangi – partner KTA said that the coming together will help them to effectively bargain with the government.
“We sat down, understood the businesses under which we are operating, COVID being one of the precipitators to see the need for companies to associate and when we came together, we realized that some of the crucial aspects that we need to be addressed were changing agendas – setting the agenda for e-trade in Uganda.”
He noted that one of the mandates of the E-Trade association is to be able to give the government data in order to be able to make informed policies.
“Data is important for service delivery. In many economies that are growing, without planning and using data, it’s impossible to do anything meaningful. So as E-Trade, with number of the customers we have collectively, amount of tax these people contribute towards the economy, we see that it will impact positively.”
Michael Wilkerson, the co-founder and CEO of Tugende Ltd noted that “It’s both exciting and a privilege to be part of this initiative because Startups are about the future. It is not a coincidence that members of the E-Trade and Startups Association have moved, in a fairly short time to become some of the largest taxpayers and job creators in Uganda.”
“the more exciting news is that startups and e-commerce is not just about elites, we are seeing digital opportunities providing livelihoods and opportunity for rural farmers as well as fishermen on lakes the same way for a boda boda rider right up to the top senior civil servants,” he added.
