Business

South Africa returnees turn to small businesses to rebuild lives

For the returnees, managing their limited resources is only part of the challenge. They also cite taxes and fees imposed by Kampala Capital City Authority, the Uganda Revenue Authority and local governments as obstacles to establishing and running small businesses.

A Photo Moment for EU siting Charles Ocici, Dickson Ogwang, Paul Lusembo, and the returnees with their certificates at the EU Headquarters. October 15, 2026. (Photo by Titus Kakembo)
By: Titus Kakembo, Journalist @New Vision

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For Ugandans returning from South Africa, rebuilding a life at home means more than finding somewhere to stay. It also means restoring lost livelihoods, overcoming public ridicule and finding the capital to start again.

Mathius Mbabazi, chairman of the returnees, says some are struggling to come to terms with their changed circumstances as they attempt to rebuild their lives.

“We are being ridiculed as failures by the public as we struggle to come to terms with our fate,” Mbabazi said.

He said the group comprised 1,030 people, including children, and disclosed that one of the returnees, Moses Ngula, had recently died.

Against this background, some returnees are turning to poultry farming, banana trading and petty trade, hoping to regain financial independence after leaving behind property and other investments in South Africa.

The sh2billion pledged by President Yoweri Museveni is expected to support their individual efforts, through a SACCO, to establish businesses and rebuild their livelihoods.

However, some returnees say the initial sh2m they received from the Government has gone towards immediate needs, including paying rent and securing accommodation for three months in advance, leaving them with no money to invest in income-generating activities.

The challenges emerged during a two-day business orientation workshop held in Butabika on October 14–15, 2026, facilitated by Equity Bank and Enterprise Uganda. Participants received certificates after completing training intended to equip them with entrepreneurial skills.

Enterprise Uganda executive director Charles Ocici urged the returnees not to allow the loss of property and income to discourage them from starting again.

“Having an empty wallet can be so demoralising and socially belittling. But do not mind starting from zero,” Ocici said.

He cited the experience of Asians expelled from Uganda by former president Idi Amin in 1972, saying many rebuilt their businesses after resettling in other countries.

“They bounced back in entrepreneurship using their expertise generated over time. There are refugees prospering in Uganda and yet they came with nothing” he said.

Ocici encouraged the returnees to apply the skills and disciplines they had learnt in South Africa to their new ventures, warning that circumstances could change unexpectedly.

He also cautioned them against spending their start-up capital on non-essential items, urging them to cultivate a saving culture and reinvest their earnings.

“You know that every coin counts. Shun conspicuous consumption of the cash you have and develop a saving culture if you are to excel in the money world,” he said.

For the returnees, managing their limited resources is only part of the challenge. They also cite taxes and fees imposed by Kampala Capital City Authority, the Uganda Revenue Authority and local governments as obstacles to establishing and running small businesses.

The concerns underline the difficulties of turning emergency support into sustainable livelihoods, particularly when entrepreneurs must meet household expenses while trying to build up business capital.

Dickson Ogwang, a representative of the Ministry of Foreign Affairs, assured them that, the Government was negotiating with South Africa over compensation for Ugandans who left behind property, including computers, vehicles and other belongings.

He urged the returnees not to delay rebuilding their lives while waiting for the negotiations to yield results.

“Meanwhile, get started and build a foundation. Now we know you have registered your SACCO, which paves the way for the sh2billion pledge from President Museveni,” Ogwang said.

He also said a tax waiver applied to items being received, a measure that could help returnees recover their belongings. The precise scope of the waiver, however, needs clarification.

Ogwang added that plans were under way to facilitate the return of about 700 Ugandans who remained in South Africa.

Meanwhile, access to financing could help returnees expand their enterprises once they establish viable businesses and demonstrate the ability to repay loans.

Paul Lusembo, who oversees small and medium enterprises at Equity Bank, said the bank offered loan products ranging from sh100,000 to sh100m.

He said prospective borrowers needed a traceable address, a business plan and a viable enterprise to qualify for credit.

“Keep your credit record clean, however small it may be. That track record qualifies you for more money,” Lusembo said.

A good repayment history, he added, could help entrepreneurs qualify for larger loans as their businesses grew.

For the returnees, the immediate task is to identify viable business opportunities, manage their money carefully and grow their ventures gradually.

The workshop provided guidance on entrepreneurship and access to finance. But the returnees’ experiences show that rebuilding their lives will also depend on whether they can secure sufficient working capital, manage operating costs and turn small ventures into reliable sources of income.

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