WHAT DOES 8.9% P.A ECONOMIC GROWTH IN UGANDA MEAN?

Uganda’s economic growth (GDP) is estimated at 8.9%. This is, however, reflected in the construction and communication sectors. Debate has been going on as to whether this economic growth reflects the actual position on the ground. A team of Citizen Journalists in Uganda conducted a survey on small business enterprises in Kafunda zone located in Seeta town, a few kilometres from the City centre of Kampala.

Talking to some small business entrepreneurs tells the story of how the economic growth segregates them.  "We see Pajeros in Uganda pass by us, inscribed with project names, and we wonder whether they are meant for the urban or rural poor, because our livelihoods leave much to be desired", says one Robert Mugoowa, a charcoal seller and farmer.

Mr. Kaddidi, a casual labourer, says he earns Ug. Shs. 3,000/= - 4,000/= per day, which is less than 1 US. $. "I am married with three children. The eldest, who is 5 years goes to a near by primary school.  I cannot survive but have nothing to do other than to continue struggling. My wife also works at Seeta town. She prepares French fries, commonly known as chips."  He says he rents a house.  When he was asked about whether he knows about a Uganda National budget, he replied that he only knows that the budget increases and decreases the prices of the essential items. He had little knowledge of how the national budget affects his business and wellbeing.

Nalongo Nakamuli, a widow with eight children, who immigrated from Kasaawo Mukono, established a small business in selling tomatoes and charcoal.  She comments that “I struggle to make ends meet”. When one of her children was hospitalised, her business closed.  Her children are at home because she cannot afford school fees. The eldest, who is eighteen, completed primary level and cannot continue with education -- she therefore resorted to give a hand to the mothers’ business which will eventually entangle her in a similar life-style to that of her mother.

The business started with capital of Ug. 300,000/ -- equivalent to US. $185, and it is not enough to make ends meet. Due to lack of business acumen and financial management skills, Nalongo does not keep business records despite the fact that she says she makes a profit. To maximise the use of her time, Nakimuli engages in handicraft, as she await her customers.

Mr. Robert Mugowa is a charcoal seller. He says "we are called Bayaye (social delinquents) as we struggle to make ends meet." He also adds that the benefits go to officials who are supposed to deliver the assistance to the common man. The Luganda proverb says,”ekirimutu kimanywa nanyinikyo” literally meaning that  what is packed is only known by the one who packed it.

Kayondo James, a seemingly successful individual in his business, had some knowledge of the government programs. He also knew the national budget and was quick to say that the economic growth the government is boasting about is not felt at the grassroots. The development is only in “big” investments, the small business holders are languishing in poverty. He also notes that a country where prices are high makes it difficult for small businesses to grow. The revenue authorities, both at local and central government levels, have levied high taxes that greatly affect one's savings, he says. He appeals to the government to subsidise smaller business entrepreneurs, promote their potential and provide markets for their produce.

Most small entrepreneurs talked to say they have no knowledge of government programmes, though they have very good sustainable ideas. "The government must consult us in the planning and delivery processes, we also need awareness and training because we know what we want; we only lack the systems to put our idea into action," they say.  "Local councils in Uganda ceased to operate and we find it difficult to channel our views, hence we have remained spectators," Robert Mogowa comments with laughter.