With 58 years of business excellence under their belt since 1964, Uganda Baati has continued the journey of nurturing their stakeholders.
In a two-day conference that was held at Speke Resort Munyonyo, Uganda Baati has utilized this annual event to groom the company’s dealers who majorly include hardware owners and entrepreneurs that are majorly retailers of their products.
According to George Arodi the Chief Executive Officer (CEO) and Head of Business at Uganda Baati, these teams of dealers who are spread out countrywide comprise about 60% of the company’s sales.
“Uganda Baati is the largest metal company in Uganda and East Africa, and was the first company to acquire aluminium technology in East Africa,” said Arodi, who is fondly reffered to as the man of steel.
He made these revelations at the annual conference at Speke Resort Munyonyo.
The highly publicized two-day event the Uganda Baati Dealers Conference which is held on an annual basis focuses on creating partnerships for shared success.
The 2022 edition attracted various hardware owners who are united under an umbrella association known as CHADA.
“Research shows that most family businesses don’t go beyond the first generation,” revealed Mr. Peter Kyambadde a partner at KPMG Uganda. Whose firm deals in tax and advisory services.
A good chunk of the conference participants dissected issues like what causes family businesses to fail soon after the owner passes on.
Dr. Peter Kimbowa an expert on this topic stated that “family businesses have had a sad story in Uganda.”
He also noted that; “about 90% of all businesses do not make it to the third generation.”
“In Uganda it is only Chapa Mbalazi that has existed for over 60 years,” he said.
Adding that in Japan; brands like Fuji and Toyota are among the established family businesses that have made a global impact and lived on through many generations.
Other members who were present was a large number of Ugandan Asians who are a key part of Uganda Baati that is also a family business that has stood the test of time for over five decades.
“Creating interest amongst family starts at a young age. Deliberate Interventions have children involved in the work we do and have them pursue an education that can eventually contribute to the business,” noted George Arodi, the Business Head at Uganda Baati.
Another hot topic that took center stage was the issue of most children who do not express interest in their parent’s ventures in this case the hardware stores which they consider to be “a dirty business.”
Among the reasons cited for early demise of many family businesses include.
“Some of the founders of the business have an exaggerated opinion of themselves,” said Dr. Kimbowa.
He noted that Covid has taught us that facts are not the truth he emphasized that “There is no Mr. Know it all but there should be Mr. learn it all.”
There was a panel discussion which was moderated by Ian Rumanyika, the Head External and Corporate Affairs Manager at Uganda Baati Limited.
During this session, Hajji of Buildmax hardware revealed that; “sometimes our culture as indigenous Africans does not favour us to adopt good practices which come naturally to our Asians friends that have them instilled in them at a very tender age.”
It also emerged that it is very important to do succession planning, this also created a conversation on members of the family who are not interested in the business with one of the speakers suggesting that these can easily bring down a business.
“Let non interested family members be allowed to work elsewhere and only be given a share of the proceeds from the business,” he said.
Another speaker at the event, The Chairman of CHADA – the umbrella organization of all hardware dealers in Uganda who is also the owner of Seroma Hardware emphasized that as a man you must have assets that make money.
The issue of regulators like Uganda Revenue Authority was also a touchy subject during this discussion.
How Ecobank is Betting on Inclusive, Tech-Powered Learning in Uganda“The tax man has a 30% stake in your business, this 30 per cent will be taken away whether you like it or not in form of taxes or penalties,” KPMG’s Peter Kyambadde cautioned the dealers in attendance.
He also emphasized that it is important to have a working relationship with the regulators like URA and KCCA as well as town councils and local governments.
“If your business does not comply you will be closed, so compliance is key and so is consultation,” he noted.
Construction and hardware dealers association – CHADA formed a savings and credit cooperative union which is designed to benefit members of this nationwide association of hardware dealers most of whom are family owned business units that are a key support structure of Uganda Baati for so many years.
It was also noted at this year’s edition of the dealers’ conference that instead of throwing lavish parties or extravagant celebrations like weddings and costly graduation ceremonies these funds should be better spent on investing for a brighter future as opposed to spending it on a one-day event.
Dealers were also advised to diversify into other investment avenues to increase their income streams and also hire professionals to run the business where need be.
Uganda Baati limited is a member of Safal Group of Companies. The Safal group of companies is the largest steel roofing company in Africa.
Experts like lawyers and clerics can be included in the family constitution to help avert family conflicts that tend to arise when the founder of the business dies.
“Dr. Kimbowa advised that a lawyer should structure this out for you to avoid future conflicts.” Adding that; “the reason you need a lawyer on board is to help with conflict resolution.”
”We have to bring the family together so that they can have a sense of ownership for the businesses and are able to take responsibility when the need arises” noted Dr. Peter Kimbowa.
Dr. Peter Kimbowa (PK) is a Global Leadership Catalyst, Coach, Author, Speaker and International Award-Winning Futurist. He was one of the panelists at the annual event organized by Uganda Baati he noted that to build a business, you must start small and then grow big.
Uganda Baati has an ecommerce platform because it has emerged that customers are more tech savvy and they do not have the time.
The company has customers place their orders online and Uganda Baati serves a reasonable number of their customers on digital.
During the media brief, it was noted that the cost of logistics has gone up and this impacts planning.
Mr. George Arodi said that all the manufacturers and dealers are doing all that is within their means to manage the costs saying we need to commend Uganda Baati and CHADA.
The Chairman of CHADA and owner of Seroma Hardware said that rising cost of construction materials is affecting hardware dealers as well as skyrocketing prices of raw materials.
Uganda Baati in this training session has appealed to it’s hardware dealers to pay their taxes promptly and on time in order to experiences smooth business operations.
Dr. Peter Kimbowa explained in details the rules that govern the internal conduct and behavior of families in business. This is vital as it contributes to the ability of a business to transition from one level to the next and last for generations.
“It’s important for business owners to demonstrate a plan for continuity within a family business by making plans for the future that involve and are beneficial for each member of the family,” said Dr. Peter Kimbowa
“We do construction work in Uganda as well as manage dealers. At first, we were competing with Uganda Baati
, but we realized working together is better,” said Simon Sekenkya, the Chairman of the Construction and hardware association, CHADA.
The panel at the #UGBaatiDealersConference 2022 consisted of Mr. Abbas Mutyaba, Chairman, CHADA, Mr. Peter Kyambadde, Partner, Tax & Regulatory services – KPMG Uganda, Mr. George Arodi, Business Head – Uganda Baati and Dr. Peter Kimbowa, Global leadership catalyst.
The Uganda Baati Business Head, George Arodi shared Uganda Baati’s journey over the years which has been characterized by product innovation, anticipating and satisfying customer needs as well ensuring employee welfare through engaging in various internal programs.
Uganda Baati is a member of the Safal Group. The group has metal coating lines in Kenya, Tanzania, Uganda and South Africa.
