The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Traders in downtown Kampala say they are worried at the rate at which their colleagues are closing shops due to unfair competition from Chinese traders.
Traders dealing in hardware to general merchandise argue that the Chinese who used to sell the goods in China came directly to trade from Uganda. This has seen them (Chinese) sell goods much cheaper than Ugandan traders, driving the locals out of business.
Traders told URN that one in five colleagues they know usually get out of business by end of year – that makes it 20% of the traders annually. There are no official figures to verify this claim.
William Kaggwa, the secretary-general of the Nakasero Hardware Business Association, said they have seen many of their colleagues close shop because they can’t sell at prices Chinese traders are selling at and remain in business.
Kaggwa explained that one of the issues they have is that even at interfacing with Uganda Revenue Authority, local traders are treated differently from foreigners, saying the local traders are given strict guidelines to follow, different valuation for the same goods as Chinese.
This reignites the call to have government stop so-called investors from engaging in retail and whole trade. The involvement of Chinese and Indian traders has seen some local traders who used to import have stopped.
They wait for Chinese to bring and they buy from them. By walking around downtown, it is easy to notice Chinese in shops or supervising the offloading of merchandise from trucks.
Two years ago, hardware business owners in Nakasero closed shops to protest what they called unfair trade practices by Chinese and government promised to hear their issues.
Kaggwa said sometimes, the foreign traders have green lines where URA allows them to take their goods directly to their warehouses and shops and then pay taxes later, a privilege local traders don’t have.
Dicksons Kateshumbwa, the tax body’s customs boss, told traders last month that he would dedicate January to meet their groups on their challenges.
Sam Muyomba, a trader and spokesperson of Kikuubo business community, said they compete on the same item here but “they (Chinese) are the very people that sell us the same goods in China.”
Trade minister Amelia Kyambadde previously met with traders and warned Chinese and other foreigners would not be allowed in petty trade. Not much has been done to stop them.
Traders say they were later told Uganda is an open market and everyone is allowed to trade.
Abeli Kayizi, a trader in shoes, said one of the impact of Chinese is that they have artificially driven up rents in town.
“They come here, pay for a building and make landlords think all traders have that money,” he said.
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This is very simple. The people who have factories just want to have higher sales. They make their profits in the factory so they can afford to sell cheaply in other areas. The article doesn’t consider the buyer who are getting goods cheaper. It’s helping the Ugandans buy goods cheaper. It’s good for the end consumers. More factory outlets and cheaper products available. It’s a point of view you need to consider.
This will be down fall of Ugandan business and eradication of poverty in Uganda these so called Chinese and Indians should be driven out selling goods where local traders are doing business they shud be investors only not local trade and also increase taxes for them like 90% and rent 90%
The trend of capitalism is survival for the fittest …if u buy your products in China and come to Uganda demanding double the price of that product that is 100% profit and a Chinese also buys it the same coast but for him he is after selling very first to bring in more goods demanding 25% profit who is unfair here for sure and what do u expect for the end user…END USERS WILL ALWAYS GO FOR THE CHEAPER BUT SAME PRODUCT