The Independent Uganda: You get the Truth we Pay the Price
Slow economy to blame
It is not clear for how long the government will go on pleasing the Chinese even as the grumbling amongst Ugandans grows every year.
The first protest against the Chinese was in May 2009 by Ugandan traders operating out of the Kikuubo Lane—the busiest retail and wholesale enclave in Kampala. In July 2011, a bigger group of traders from different markets in Kampala shut down their shops for two days to protest against the influx of Chinese retailers.
The latest protest is the fourth and the strikes are becoming so common that they have become the topic of academic papers. One such paper appeared in the `African Studies Quarterly’ in December 2016 under the title, `Chinese traders in Kampala: Status, Challenges and Impact on Ugandan Society,’ by Dutch researchers Ward Warmerdam and Meine Pieter van Dijk. They concluded that the discontent directed towards the Chinese, especially by small traders, is a result of their being seen as undercutting local traders, not contributing to the local economy, and only being interested in short term gain.
Ugandan traders are not alone in feeling the sting of competition from the Chinese. Inexpensive Chinese goods have gained popularity across Africa over the last decade and resulted in Chinese entrepreneurs gaining in confidence to do business on the continent and setting up and manning outlets. The Chinese have virtually eliminated the African middleman in many cities.
In Uganda’s case, however, a stagnated local economy is partly contributing to the growing irritable relationship. The official government position is that foreign traders should not be in retail and wholesale trade or hawking. But clearly, the trading legal regime does not impose such restriction and many of the Chinese operate fully within the law. That is the point Deputy Chief of Mission at the Chinese Embassy in Kampala, Chu Maoming, made on April 24 while addressing Chinese business people and locals gathered at the launch of the `Seeds of the Future’ programme at Makerere University.
“Uganda has no law that bars foreign investors from engaging in retail trade,” Chu said.
Even Everest Kayondo, the Chairman of KACITA says the government needs to clarify the issue.
“This matter has dragged on for too long,” he told The Independent, “Kyambadde needs to come out and allay the fears within the business community by telling them what the government is proposing to do.”
Even some local economics experts are backing KACITA. One of them, Ramathan Ggoobi, a lecturer of economics at Makerere University Business School told The Independent that KACITA’s concerns are valid.
“When someone told this government that they can liberalise and open up the economy, they took the advice literary to mean that liberalisation means de-regulation.
“We are not saying we are against foreign investment; we are saying some activities should be ring-fenced for ordinary Ugandans.
“You can’t come from Shanghai or Beijing and set up a retail lock-up in Kikuubo and one thinks any Ugandan can compete with such a person.
“They are the manufacturers of these products; they bring them here and now they want to retail them.”
Uganda has been here before.
In 1972, President Idi Amin deported over 60,000 Asians (mostly Indians) for economic reasons in an act that plunged the country into its worst economic slide ever.
Although traders from the Indian sub-continent have since returned and are a dominant force in trade and industry, it now appears the Chinese are gradually replacing them as the primary target of resentment among Ugandan petty traders.
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in that case , if the government is to stop these chinese from the retail business, then the same government should regulate the price of all commodities being sold. because our local traders, b4 these foreigners opened up shops here, they were really making everything so expensive en a luxury to us all. for example 100usd could only get you a 2nd hand tv. a new one would be 300usd. yet they would buy it at 70usd. in china or india. but now with these stores in town. new things are at a fair price. and let the customers decide. KACITA is one of ur biggest problem u traders. they own the buildings you do business from and they make them so expensive thus increasing ur cost of operation, this group should be bargaining for a fair tax from government on ur behalf, a group of 200,000 traders, you should have ur own bank giving you loans at a reasonable interest rates, if you stop getting money from those other banks, they’ll come back to their senses en reduce theirs too. all you need is a really nice organised KACITA to give you a fair competition aganist the chinese. no ugandan would buy from a chinese if you are all selling at the same price. you should also make groups and buy in bulk as a group at a cheaper price rathed than coming one by one to buy things from china at a higher price. just get organised en compete.