Why small businesses in Eastern Uganda are collapsing

Local businesses in  more than  six business districts in Eastern Uganda are living in fear of hard economic conditions. 

A report sanctioned by Twaweza that featured six Business districts in eastern Uganda comprising Mbale, Butaleja, Tororo, Bugiri, Busia and Namayingo highlighted challenges of access to Capital, high-interest rates, high costs of transportation, Taxes, crime, and lack of business skills.

A high-frequency mobile phone survey by Twazezas Sauti Za Wananchi a national representative of a high mobile phone panel has revealed these findings;

Agriculture was named among businesses still operating in a survey which  reveals that the main reason  businesses are closing was  lack of capital.

In the  survey 1 out of 3 business owners said  doing business in Uganda is easy ,while half said  it is difficult.

The concerns are based on the fact the a modern economy cannot function without businesses or without taxes.

In the survey, most business owners are still pessimistic about the state of their businesses than was the case in 2019 .

On taxation,the vast majority of citizens are at least aware of value added tax and VAT.

These are two forms of taxes that citizens recall paying.

Most citizens confess that the reason they pay taxes is to facilitate government to deliver services ,how ever others say they pay taxes because sometimes its compulsory.

Marie Nanyanzi Senior programme officer at Twaweza explained that Twaweza conducts regular surveys,  asking citizens about their experiences and opinions on a number of topics.

These  attract media and government attention to guide on providing a clear direction towards provision of the necessary services and action to address various concerns.