‘Kampala not yardstick for private sector‘
Sep 20, 2009
UGANDA National Chamber of Commerce and Industry (UNCCI) recently appointed <b>John Ssempebwa</b>, as the new chief executive officer. <b>James Odomel </b>talked to him.
UGANDA National Chamber of Commerce and Industry (UNCCI) recently appointed John Ssempebwa, as the new chief executive officer. James Odomel talked to him.
What is your assessment of the state of the private sector in Uganda today?
Uganda’s private sector is dominated by small entrepreneurs, most of them unregistered, informal and located out of Kampala.
What you see in Kampala does not represnt the private sector in Uganda.
These informal, rural-based micro enterprises are run by Ugandans that enjoy the privileged position of being the most entrepreneurial nationality in the world.
One out of every three adult Ugandans has tried to set up a business.
All these informal, micro and rural-based enterprises are united under the UNCCI umbrella, which also has most of the larger enterprises as members.
What are the challenges your members face?
Different sectors have different challenges. The worst-hit are those trying to manufacture, add value.
It is not surprising that many of the large manufacturers, especially those that don’t process agricultural commodities, have shifted or are shifting to Mombasa.
The cost of transporting materials from the coast, or finished goods for export is exorbitant.
The cost of the unreliable energy is also discouraging. It’s the highest in the region.
The expected new dams will create millions of Ugandan entrepreneurs.
Also, the agro-based firms lack suitable equipment to produce faster or at lowcosts.
These have had issues with market information on prices and buyers, in addition to the lack of generally agreed principles in production, which reduce quality.
The most profitable is service provision, restaurants, special hire, transport, air-time distribution, retail and wholesale.
Ugandans are willing to part with 10 times what Chinese pay for a shoe in China.
Only persons assured of higher than 20% profit can risk borrowing from the commercial banks whose attitude towards the smaller enterprises remains unfavourable.
We look forward to the day these banks will provide financing to smaller enterprises.
How is UNCCI helping?
UNCCI is enhancing opportunities for the entire private sector in Uganda. Instead of lamenting about threats, we provide the private sector with an avenue to undertake effective advocacy both at district and central Government level.
There are challenges that our members cannot solve individually and these are solved through effective lobbying by other powers.
This way, we exploit the opportunity in decentralisation by enabling all our 80 plus district chambers to ensure that the district budgets are pro private sector.
This includes what the business community think can have the largest trickle-down effect on the income side of their statements.
UNCCI is not only the largest, but also the only country-wide organisation with offices in all districts. It ensures that resources at the district level are used in a private-sector friendly manner. That is, to address the challenges faced by the private sector at the district level.
Secondly, the chamber trains the business community. We have launched a program called ‘Business Edge,’ a training tool developed by the World Bank and used globally. We want to empower our members at the micro-level by training them, because the main problem is not finances but business skills.
In addition to advocacy, UNCCI partnered with the International Finance Corporation to ensure that the small and medium enterprises undergo the Business Edge training to improve their financial, marketing, human resource and operational performance. It is free for all UNCCI members.
Thirdly, our role is to encourage match-making through the global chamber system of 10,000 chambers and 50 million companies, the largest business network in the world.
Our fourth role is to disseminate information. There is some good work that Government agencies like Uganda National Bureau of Standards, Uganda Investment Authority (UMA), Uganda Revenue Authority and Uganda Export Promotions Board are doing.
However, we are lacking when it comes to disseminating information about their activities to our members.
We are here to link these agencies to the business community.
That way, we enable our members exploit the developmental things the Government is doing.
For example, before the Counterfeit Goods Bill becomes a law, all our members will have learnt how to register trade marks and copyrights.
Also, before the Economic Partnership Agreements come into force, all our members will have known the trade opportunities in the EPAs.
We hold a members’ seminar every month on a relevant topic. Last month we introduced the Business Edge program.
This month, our members will learn how to pay the right taxes, using the opportunities in the East African Community customs union, the EPAs and other relevant laws.
What is your relationship with UMA and Private Sector Foundation Uganda?
We are all members of the East African Business Council (EABC) board and the national chapter of the EABC.
We are cooperating with Uganda Manufacturers Association on many fronts such as the GTZ-backed private sector forum on productivity and vocational skills. We cooperate with both organisations on the national chapter of the EABC, in pursuit of a better business environment in Uganda.
I have assurances from the President of UNCCI that it shall not hesitate to participate in anything as long as it enhances business opportunities for its members.
What are UNCCI’s future plans?
UNCCI is going to make giant strides in its advocacy at the district and central levels.
We are growing and hope to have 300,000 members by 2011.
We want to remain the largest and most relevant umbrella business organisation, enhancing opportunities for the Ugandan business community.
What is your assessment of the state of the private sector in Uganda today?
Uganda’s private sector is dominated by small entrepreneurs, most of them unregistered, informal and located out of Kampala.
What you see in Kampala does not represnt the private sector in Uganda.
These informal, rural-based micro enterprises are run by Ugandans that enjoy the privileged position of being the most entrepreneurial nationality in the world.
One out of every three adult Ugandans has tried to set up a business.
All these informal, micro and rural-based enterprises are united under the UNCCI umbrella, which also has most of the larger enterprises as members.
What are the challenges your members face?
Different sectors have different challenges. The worst-hit are those trying to manufacture, add value.
It is not surprising that many of the large manufacturers, especially those that don’t process agricultural commodities, have shifted or are shifting to Mombasa.
The cost of transporting materials from the coast, or finished goods for export is exorbitant.
The cost of the unreliable energy is also discouraging. It’s the highest in the region.
The expected new dams will create millions of Ugandan entrepreneurs.
Also, the agro-based firms lack suitable equipment to produce faster or at lowcosts.
These have had issues with market information on prices and buyers, in addition to the lack of generally agreed principles in production, which reduce quality.
The most profitable is service provision, restaurants, special hire, transport, air-time distribution, retail and wholesale.
Ugandans are willing to part with 10 times what Chinese pay for a shoe in China.
Only persons assured of higher than 20% profit can risk borrowing from the commercial banks whose attitude towards the smaller enterprises remains unfavourable.
We look forward to the day these banks will provide financing to smaller enterprises.
How is UNCCI helping?
UNCCI is enhancing opportunities for the entire private sector in Uganda. Instead of lamenting about threats, we provide the private sector with an avenue to undertake effective advocacy both at district and central Government level.
There are challenges that our members cannot solve individually and these are solved through effective lobbying by other powers.
This way, we exploit the opportunity in decentralisation by enabling all our 80 plus district chambers to ensure that the district budgets are pro private sector.
This includes what the business community think can have the largest trickle-down effect on the income side of their statements.
UNCCI is not only the largest, but also the only country-wide organisation with offices in all districts. It ensures that resources at the district level are used in a private-sector friendly manner. That is, to address the challenges faced by the private sector at the district level.
Secondly, the chamber trains the business community. We have launched a program called ‘Business Edge,’ a training tool developed by the World Bank and used globally. We want to empower our members at the micro-level by training them, because the main problem is not finances but business skills.
In addition to advocacy, UNCCI partnered with the International Finance Corporation to ensure that the small and medium enterprises undergo the Business Edge training to improve their financial, marketing, human resource and operational performance. It is free for all UNCCI members.
Thirdly, our role is to encourage match-making through the global chamber system of 10,000 chambers and 50 million companies, the largest business network in the world.
Our fourth role is to disseminate information. There is some good work that Government agencies like Uganda National Bureau of Standards, Uganda Investment Authority (UMA), Uganda Revenue Authority and Uganda Export Promotions Board are doing.
However, we are lacking when it comes to disseminating information about their activities to our members.
We are here to link these agencies to the business community.
That way, we enable our members exploit the developmental things the Government is doing.
For example, before the Counterfeit Goods Bill becomes a law, all our members will have learnt how to register trade marks and copyrights.
Also, before the Economic Partnership Agreements come into force, all our members will have known the trade opportunities in the EPAs.
We hold a members’ seminar every month on a relevant topic. Last month we introduced the Business Edge program.
This month, our members will learn how to pay the right taxes, using the opportunities in the East African Community customs union, the EPAs and other relevant laws.
What is your relationship with UMA and Private Sector Foundation Uganda?
We are all members of the East African Business Council (EABC) board and the national chapter of the EABC.
We are cooperating with Uganda Manufacturers Association on many fronts such as the GTZ-backed private sector forum on productivity and vocational skills. We cooperate with both organisations on the national chapter of the EABC, in pursuit of a better business environment in Uganda.
I have assurances from the President of UNCCI that it shall not hesitate to participate in anything as long as it enhances business opportunities for its members.
What are UNCCI’s future plans?
UNCCI is going to make giant strides in its advocacy at the district and central levels.
We are growing and hope to have 300,000 members by 2011.
We want to remain the largest and most relevant umbrella business organisation, enhancing opportunities for the Ugandan business community.