98% businesses owned by Ugandans

Jul 18, 2011

UGANDA has more than 457,000 private businesses of which 98% (447,860) are owned by Ugandans, the 2010 business census by the Uganda Bureau of Statistics (UBOS) has shown.

By Conan Businge
and Sophie Nakikata


UGANDA has more than 457,000 private businesses of which 98% (447,860) are owned by Ugandans, the 2010 business census by the Uganda Bureau of Statistics (UBOS) has shown.

This is a 200% increament in the last 10 years. There are only 2% (9,140) businesses owned by Indians.

Of all the private businesses, 278,700 are dealing in trade, 63,980 in hotels and restaurants, 41,130 in recreation and personal services, 31,990 in manufacturing, 137,10 in health and education and 9,140 in agriculture.

Despite these figures, UBOS admits that data for the education sector was not fully captured.

In terms of location, most of the businesses (58%) are in the central region with 28% in Kampala.

Western Uganda has 18% and it is second to the central region.

In 2001/2002, the eastern region was the second. Today, the eastern region has 15% and the northern 8% of all private businesses.

The same report, using the Global Positioning System, indicates that the eastern region has the highest number of businesses in the agricultural sector.

Kampala leads in construction and manufacturing in the country.

The central region has the lion’s share of trade in hotels and restaurants and the health sector.

However, the north registered the highest growth of nearly 300% in 2010/2011 compared to 2001/2002.

Other official studies show that Uganda registers many small and medium scale businesses every year, but they do not survive beyond 10 years. The latest UBOS report shows that of the 457,000 business, about 29% started in 2010 or this year. Only 1% of the businesses were at least 30 years old.

Meanwhile, employment of people in private businesses in Uganda has grown by 136% in the last 10 years (about 1,0407,000 jobs).

By 2001/2002, there were 443,000 jobs in private stationed businesses.

The highest increase of 300% was registered in the education and health sectors in the 10-year period.

“Businesses in the trade sector continued to employ the majority number of people. Nearly five out of 10 people employed, were in the trade sector,” explained the report.

The World Bank representative at the launch of the census report, Rachel Sebudde, said the data would be vital in the formulation of policies.

The World Bank and the Government funded the sh1.7bn research.

The launch was officiated by the deputy director of UBOS Ben Mungyereza.

On a low note, only 4% of the businesses owned and used computers and only 2% of the businesses used the Internet.


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