For many years, Ugandan businesses relied on many things Kenyan. Employees in the hospitality industry, advertising, creative, transport, logistics and even banking among others. Of course, Kenya is a bigger economy which has also not been largely disrupted by war.
They had expertise that we lacked. So, it must have been easier for them to set up here or sending their goods to Kampala.
Of course, there were Ugandans doing lots of stuff in Nairobi. In the 1970s and 1980s, many Ugandan experts were exiled in Kenya working as medical doctors, lawyers, teachers, businessmen, and political ‘external wingers’ among other jobs.
Singers Joseph Mayanja aka Jose Chameleon and Moses Ssali aka Bebe Cool got their breakthroughs after recording in Nairobi studios. Later, Ugandan radio presenters made Nairobi home. Private radio had developed faster in Uganda after the liberalization of the airwaves in 1993 than in Kenya. However, if you needed technical expertise on many things, Kenya seemed to be the ideal destination.
Ugandan entrepreneurs like James Mugoya and Bulaimu Muwanga Kibirige (BMK) had set up businesses there in the construction and automotive sectors among others. But still, there was an imbalance. Kenyan businesses set up more in Uganda than Ugandan businesses did in Kenya or elsewhere.
That trend seems to be changing. First, many Ugandan big businesses like banks were run by Kenyans and other foreigners. There was a time a few years ago when almost all the banks in Ugandan had foreign CEOs. Today, the majority of banks are run by Ugandans. And some Ugandan executives are now running big businesses in Kenya, like Bamburi Cement.
Second, in recent years, we saw Omar Mandela set up his popular Café Javas in Nairobi. It became an instant hit with the hippy Nairobians looking for a place that is well known for its customer care and great food. Kenyan managers had been running the hospitality industry in Uganda and now, a Ugandan businessman was taking the game to their capital. Café Javas today has more outlets in Nairobi than Kampala and Entebbe combined.
Perhaps, other Ugandans are learning from Mandela. Since last year, we have had at least three Ugandan businesses in the entertainment and marketing world set up in Nairobi. Fenon, Swangz Avenue and Talent Africa Group all now have offices in Kenya. Previously, the entertainment and marketing businesses relied somewhat on Kenyan experts and even equipment to pull off events and marketing campaigns. Ugandan businesses are now playing on their grass.
In tourism, we are also seeing Amos Wekesa’s Great Lakes Safaris operating a hotel in Tanzania. A few years ago, we saw Centenary Bank starting operations in Malawi. Many other Ugandans are also doing business in southern Africa. The BMK Group has operations in Zambia and many others have taken the same route. Rwanda, South Sudan, Burundi and the Democratic Republic of Congo are some of the other markets where Ugandan businesses are operating.
It is remarkable that Ugandan businesses are growing and expanding in the region. Previously, we looked on haplessly as largely Kenyan businesses took over markets even after the Ugandan army had pacified some of those countries. South Sudan comes to mind.
Ugandans for example in South Sudan operated the smallest of businesses — curio shops, barber kiosks and roadside restaurants. Kenyans operated banks and other big stuff thereby gaining more from regional trade.
Uganda’s economy is largely concentrated within a radius of 80km of Kampala. That limits growth for some of the businesses yet economies like Kenya are way bigger than ours. The East African Community has a population of nearly 350 million people with a nominal GDP of about US$350 billion making it a market that we can’t simply ignore.
Uganda has been pushing for exports into these regions while facing many barriers including infrastructural ones in countries like the DRC. And if we only export there after even constructing their roads, we miss out on some opportunities that are extended to registered businesses in those markets. However, we shouldn’t be limited to only the region.
With geopolitical pressures across the globe, there is even more need to expand to take on sectors that may not be well catered of as global players concentrate on their main markets or scale down in others. Businesses which may not be ready to go it alone should look for companies they could merge with or acquire to get a footprint in those particular markets easily.
The article was posted on the African Think Tank and the writer is Denis Jjuuko, a communication and visibility consultant. djjuuko@gmail.com
