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Former Forum for Democratic Change (FDC) party presidential candidate Kizza Besigye has criticised manufacturers for driving local traders and businessmen out of business, citing unfair competition and lack of government backed support for small and medium-sized enterprises (SMEs).

Besigye, who has been a vocal advocate for local entrepreneurship and economic empowerment, argued that multinational corporations and large-scale manufacturers are squeezing out smaller businesses, making it difficult for them to survive.

"The playing field is not level," Besigye said on Monday, April 15, 2023, at Katonga Road Offices in Kampala while addressing the media on the plight of Ugandan traders and businessmen.

"Big corporations have the advantage of economies of scale, access to cheap financing and government support in form of tax exemptions, free land from State House connivance arrangements and allowing them freely to drive their merchandise from factories directly to consumers in villages,” he said.

“They produce cheaply because they do not manufacture products in Uganda but rather assemble sections of products to dodge taxes as investors and manufacturers and sell cheaper, making it impossible for local businesses to compete," he said.

Besigye cited the textile industry, where according to him local manufacturers have struggled to compete with cheap imports from China, Malaysia, Italy, US and UK, among other countries. He argued that the Government should provide more support to local entrepreneurs, including access to affordable financing, training and marketing assistance.

"The Government should be supporting local businesses, not just multinational corporations," Besigye said: "We need policies that promote local entrepreneurship and protect our industries from unfair competition. The future of our economy depends on it. There is no way you can ask $3.5 (equivalent to over sh13,300) for every kilogramme of a bale of clothes imported".

“Except Nytil, all other so-called manufacturers are importing cotton from outside and processing it from here disguised as manufacturers. This has created monopolies of foreign business associates exploiting Ugandans,” he added.

According to him, for ordinary Ugandans who want to import textiles for survival, they pay taxes in kilogrammes. This crisis in business will not go away and it is not limited to businesses alone but in other sectors of the economy including agriculture where most of them fall.

“Including cattle keepers who cannot buy genuine farm inputs such as pesticides, acaricides, fertilisers and seeds, all farmers are equally affected when Uganda National Bureau of Standards (UNBS) fails to close factories that produce fake products but go a head to tax them at the expense of Ugandans,” Besigye said.

Besigye's comments come at a time when the Government is facing criticism for its handling of the economy. The country has struggled with unemployment, poverty and inequality, and many critics have accused the Government policies of failing to address these issues.

Besigye has been a vocal critic of the Government's economic policies. He has called for greater investment in education, healthcare and infrastructure, as well as more support for local entrepreneurs and small businesses.

While some have criticised Besigye's views as populist and unrealistic, his message has resonated with many Ugandans who feel left behind by the country's economic growth. His criticism of manufacturers and call for fair distribution of resources and an end to corruption in the country has become a thorn in the flesh of the Government.

Corruption killing economy

Besigye said the Government has failed to pay public debt and Ugandan contractors which will push the locals further from the business arena.

“Corruption is a symptom of a bigger problem the country must deal with. Corruption knows no young or old, it knows no gender. When you start using identity to fight corruption saying that foreigners should not pay taxes as if they work in your own established companies, struggling Ugandans cannot have the reason why they should pay taxes to maintain the economy,” Besigye said.