Saturday, February 21, 2009

Businesses register low sales

Business in Kampala is experiencing a low return in sales and customers after the festive season. While conducting a survey around the streets and major shops in Kampala, the Daily Monitor found out that the business glee and bliss has turned lacklustre, as traders blame the situation on the increase in fuel prices, cost of transporting the goods and the global financial crisis.
At a Bata retail outlet on Jinja Road, Phyllis Nyago, a cashier blamed the low sales to high taxes on imports, increase in the cost of the raw materials which are imported from Pakistan and the increase in the price of the dollar in the world market. Despite reducing the prices of some footwear from Ush85000 to Ush50000, there was a low purchasing power from customers as most of them seemed sceptical of such price decrease.
Phyllis partly attributed this low return in sales to the fact that many customers bought the goods before the festive season and a majority of them might not need the goods now or are broke.
"After the Christmas season, business is very low. We are doing badly," Phyllis said.
She however acknowledged the fact that there was no shortage of foot wear at the Bata outlet on Jinja Road.
Mike, a trader on Jinja Road, said business was dull before the festive season. The situation changed slightly with the advent of the festive season as customers came in droves, buying gifts like Xmas cards, inspirational books, bibles and jewellery. At his outlet, prices were quite stable. He sells most of his goods at a negotiable price.
However, with the end of the festive season, it's business as usual. There's a low turn up of customers. The New Year might change the situation slightly.
At Uchumi Supermarket in Garden City, though there seemed to be an unpromising presence of customers, Otika Chrispin, the floor manager at the Uchumi outlet claimed business was normal before and after the festive season.
"There has been no big change in sales," he said.
He pointed out that the demand for goods like flour, sugar and mineral water went up but there wasn't acute shortage. At the outlet, there was no increase in prices but there was a discount on some of the goods purchased.
Andrew Kyabande, another trader at Jumaira Enterprises, electronics’ shop on Market Street said business was constant but the high taxes are affecting their business as they cannot increase or lower the prices.
"This is a competitive business and therefore, if you increase the prices, you lose the customers to your competitor," Kyabande said.
However, most electronics’ shops along Market Street and Kampala Road had reduced their prices by approximately 12%. Most of the traders wanted to win back customers since the festive season saw an increase in product prices.
At Nakasero Market, the prices for essential consumer goods like matooke, cabbages, and apples remained high. Traders attributed this to the high cost of transportation.
Abdi Salim, a trader at the market said that the price of matooke ranged from Ush10000 to Ush25000. Before the festive season, prices for the same products cost between Ush6000 to Ush10000.
Ssekitto Issa, a public relations officer of Kampala City Traders Association (KACITA) claimed the sales before and after the festive season were fair. He linked the situation to the evacuation of traders from the city centre, which restored sanity.
This pushed all traders and clients to shopping malls, supermarkets, retail outlets and markets.
"Automatically, demand was high and prices, especially for edibles, had to go up," said Ssekitto.
However, he added that without government intervention, the fuel crisis will determine price controls.
"Prices will automatically go up," he pointed out.

Joshua Masinde and Isaac Khisa

Sunday, December 14, 2008

Who is to blame, EC or government?

The issue about changing the EC (Electoral Commission) officials is not new in African countries. Just like in Uganda, Kenyans are also demanding for a change of EC officials, but the real question is, is it the officials who are to blame or is it the electorate and the government at large. These officials are not strangers to us. They are our brothers, fathers or mothers. They are people we love, trust, respect and even, inevitably love to hate.
The people we want to replace them with are also amidst us and it is not a guarantee that they are not going to be corrupt like their predecessors, if not more. The Bible tells us some evils are inherent, and we all know that one rotten potato spoils the rest in the sack, and better the devil you know than the angel you don’t know.
Also, it is important to note that it is becoming an African phenomenon to complain, refuse and protest against the system if the opposition losses. If you look at countries like Zimbabwe, Uganda, and Kenya they have one thing in common: dissatisfaction of election results. As much as there might be irregularities in the electoral system, the leaders and their supporters should accept that this is a weakness in African countries. Instead of fighting or causing chaos, they should unite and come up with a solution to the problem. After all, even if the opposition was to win in an election, members of the ruling party would also complain about the same irregularities, existent or not. It is for this reason that the notion of a peaceful nation will be nought but a myth in African countries.
Why can’t our African leaders buy the American example? In America, the elections were fair, with no race conflict, corruption or bias. When Barrack Obama won the election, his opponent, John McCain conceded defeat, congratulated him and encouraged his supporters to embrace Obama as their new president.
The government is charged with the responsibility of minimizing or totally ridding the irregularities in the EC. Once there is a weakness in the EC or if the society is dissatisfied with an election outcome, this exposes the weakness of a government, and not exactly the EC. When there is war, disagreement or discrimination in a nation, all the blame is always pointed to the government. For it is the role of the government to protect and unite its people, and a government that does not honour this shows a loophole in its system. Instead of changing the EC, we should change the government.
Susan Wamuyu.

EA MPs becoming a thorn in the flesh

The story about EAC spending 40% on hotels does not come as a surprise to me. Our African leaders use a lot of public funds on their personal issues other than improving the lives of their wretched electorate. Their allowances are very high, if not obscene, but nobody cares to ask why. Before questioning the officials of EAC on their immoral misuse of public funds, it is better to start asking their role models: the Legislators and other government officials, in their respective countries, for their penchant misuse of public funds. After all, they learn from the government and so to get rid of the problem you get rid of the cause.
What about consultants' fee, which can be equivalent to paying the salary of three employees? Isn't it weird that these officials are paid a lot of money and they do little work? Look at the number of ministers in Kenya and the assistant ministers who in some cases are more than two. Doesn't this explain why poverty is a qualification of East African countries? How can we progress in our economy if all the public money goes in the pockets of a few individuals instead of improving our economy? These are the questions which such MPs should meditate upon, daily.

By Susan Wamuyu.