'Paint market registers 10-15% fall'

The Paint market has registered a 10-15% fall an issue attributed to  low performance economy of the country, according to the manufacturers. They attributed the challenge to the fact that economy is not producing enough disposable income.

According to economists, Uganda's GDP grew by 5.8% in the financial year 2017/2018 but the introduction of mobile money and social media taxes by the government has increased the cost of doing business hence affecting the economy.

Disposable income is defined as income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.

Deon Nieuwoudt, the commercial executive at Akzo Nobel East Africa said: "When you speak to the distributors, they will tell you that sales are down compared to the similar period last year. It's not performing the way it used to; actually a couple of months ago we had to step in to assist dealers to make sure that some remain in the business,"

Nieuwoudt (left) and Pastor Tuwebaze (Second from right), the head of the newly launched colour centre at the church House in Kampala

During the launch of Sadolin 4th color centre at Church House in Kampala on Tuesday, Nieuwoudt who is also a finance expert said the dealers were trained in stock management, offered them product promotions among others.

"It is our responsibility to give our products' dealers the information and guidelines about what's really happening in the market," he stated.

Nieuwoudt added: "From January up to February, the market was a bit stable but the fall begun to be experienced beginning with March. I am however, optimistic that the paint demand is going to grow as we draw closer tto the festivities."

Ashish Devani, Head of Sales Sadolin confirmed the market fall challenge. However, he said the market fall is a temporary issue and was optimistic that by October, it will gradually increase.

"October to January is the season where many people are renovating their homes as they prepare for Christmas and New Year's Day. Currently, there are financial issues in the market but we expect the market to improve," he stated.

He said the experts at the colour centre help in mixing colours for clients depending on their need as well as offering expert advice on which kinds of colours to use on specific buildings among other things.

Buying paint in Uganda was much traditional where paints would be stocked alongside other hardware products such as iron bars, cement among other things but now the trend has changed that's why we thought to launch these colour centres," he stated, adding that Sadolin intends to open the 5th branch in Fort Portal next month.