Philomena Matsiko.
The retail sector, particularly, supermarket chain stores’ has been vibrant since 2000; highlighted by massive investment from mostly regional and local firms alike.
Its peak to date was experienced between 2010 and 2016, pigeon-holed by rapid expansion and somewhat aggressive market share battles. During this period, regional retailers such as Nakumatt, Uchumi, Tuskys and international outlets like Shoprite and Game had ‘great field days’; outmuscling and outspending local competitors.
To several commenters, this expansion even though good for job creation and increasing customers’ choices, was nevertheless considered bad for the economy as it meant increased profit repatriation. Additionally, there were questions around the sustainability of this expansion, especially if driven by short-term debt.
A March 2012 article in a local newspaper related the foreign chain stores expansion to both an unlevelled playing field and more liquidity.
Strong Vote of Confidence: Mbire Reappointed MTN Uganda ChairmanAllan Katwere, a business analyst from Uganda National Chamber of Commerce told a newspaper, Daily Monitor then that foreign megastores were growing faster than the local ones because they found it easy to access affordable financing.
“Financial institutions and government avail low-interest rates to them compared to local counterparts,” Mr. Katwere told the Daily Monitor, adding;
“Tax holidays and rebates are being availed to these foreign investors through Uganda Investment Authority’s investment initiatives to promote foreign investment.
