_Retail through Uganda’s 60 years of independence

It has evolved from the small Dukas (small shops selling a variety of goods) inspired by Indian settler, Allidina Visram, who set up the first duka in Kampala on the then Allidina Visram Street (now Luwum Street) in 1903, to now the modern shopping malls, where consumers darted around suburbia.

One cannot appreciate the changes that Kampala has undergone over the last 60 years since Uganda’s independence without putting in context the economic, social, and political events and the global trends over the years. At the time of independence in 1962, Uganda faced prospects of economic prosperity. The new country had a thriving subsistence agriculture sector that was not only self-supporting but very strong. The export of coffee, cotton, and cocoa was complemented by an incipient mining sector in the South. Production of some other raw materials reflected in a positive balance of trade.

A decade later, these fortunes would be put to test when then-President Idi Amin launched an economic war that saw about 50,000 Asians forced to leave Uganda in 90 days. At the time, Asians (mostly of Indian origin) owned 90 percent of Uganda’s businesses and accounted for 90 percent of Ugandan tax revenues.

This economic war marked the death of the private sector. Amin’s economic regime heavily controlled retail prices and made the government a monopoly purchaser and transporter of coffee. These conditions encouraged smuggling and the emergence of the informal economy. Some analysts credit Amin for opening up the business sector, which had been dominated by Asians, to Ugandans. The jury is still out.

Though on a small scale, Kampala (with a population of 350,000 at Independence) had a functional retail sector that previously relied on the demand created by the colonial administration, an emerging class of civil servants who were paid handsomely, the Asian community itself – three groups who at the time had disposable income, and the indigenes.

Notable retail businesses included Drapers Uganda Ltd, Kampala’s first department store which sold among others apparel, haberdashery, and shoes, for the upscale market. The store (which occupied the ground floor of the current Crane Chambers on Kampala Road) also the first to install an elevator in Kampala, would however later be looted clean in 1979 after the liberation war.

Cashco supermarket, located behind Drapers building suffered the same fate. Cashco was Kampala’s very first supermarket. Among other retailers was former Kampala Mayor Nasser Ntege Ssebagala who in the early 70s acquired a shop on Kampala Road, at the current location of Cairo Bank International. There, he set up New Fabricano, a boutique that sold imported clothes. Ssebagala later opened Ugantico Supermarket in 1979. This is said to be the first supermarket to be owned by an indigenous Ugandan.

As opposed to the duka which provided personalized service and attended to customers’ needs, the new large retailers (supermarkets) were more focused on self-service and providing efficiency.

Owing to the lifestyle of the British (colonial government) and Indians, a cinema had been built by an Indian businessman, Norman Godinho. Norman cinema was housed in the present-day Watoto downtown building and became the first large, lavish, and well-appointed movie house in Kampala. The building also had space for retail shops on Bombo Road and Kyagwe road. Other theatres were Nita (present-day La Bonita), Odeum (now Fido Dido), and Delight. These were frequented for movies and other entertainment activities like theatre plays.

Food has always been essential to retail. And Ugandan consumers have historically preferred to shop at traditional wet markets, obtaining the satisfaction of hand-picked fruits and vegetables at negotiable prices. Nakasero market, adjacent to Kampala Road was the place to go for shoppers of groceries and fresh foods. Farmers from different parts of the country regularly fed the market vendors with fresh produce highly demanded by middle-class Ugandans, expatriates, hotels, and restaurants. To this day, Nakasero still holds its place.

Consumer behavior and lifestyle in the city have evolved over the last 60 years. A rising middle-class with disposable income, growth in the young population demographic, rapid urbanization and increased demand, advent of the internet and social media, and exposure to foreign lifestyles have all driven changes in consumer patterns. New trends have ushered in the urge for fast foods and chains like Café Javas, KFC, Chicken Tonight, Pizza Hut, Cafésserie, and Chillies. But before that, it was restaurants like Wimpy’s burger shop, Sardinia, Nile Grill, Slow Boat, Labella, and later Nando’s and Antonio’s, that were popular restaurants in Kampala.

Motor Mart (now Eagen House) was Uganda’s first indoor car showroom. The market has since seen the entry of Toyota, Nissan, TATA, Honda, Mercedes Benz, and KIA among others. This can be attributed to increased demand due to a growing middle income as well as the liberalization of the economy.

A look at Kampala’s retail journey is incomplete without the Owino market in downtown Kampala - which was the central nervous system of trade in apparel. Uganda has always been a prime market for second hand clothes also known as ‘mivumba’. The mivumba trade chains involve importers, wholesalers, retailers, and vendors.

Wholesale Dukas (shops) lined Nabugabo Road and Namirembe road while Owino was where the ordinary low-class buyer went to buy clothes. It was boutiques on Kampala Road that catered to middle-class customers. Kiyembe and Katwe were the other spots popular for tailoring and low-cost garments. With Kampala’s growth over the years, these retail shops have spread far out to other townships in the outskirts of the central business district.

Toronto-based footwear maker, Bata, had set up shop in Uganda in 1932 and had a retail network of over 17 shops and sale points. With a factory in Jinja, Bata controlled a big portion of the footwear market until the country began to import cheaper shoes from China and Dubai in the 80s.

Under the Yoweri Museveni government, the economy has grown significantly owing to major economic policy reforms and the restoration of peace and stability. The government has also taken deliberate steps to attract foreign investments. This also saw a good number of Ugandan Asians who had been in exile return and build successful retail businesses. Some of the reforms undertaken include liberalization of internal and external trade, building physical infrastructure, and incentivizing private investment.

Since the early 1990s when Pioneer Mall was the only shopping mall, Kampala has seen a rise in privately owned shopping complexes including Oasis Mall, Acacia Mall, Lugogo Mall, Village Mall Bugolobi, Metroplex Mall Naalya, Victoria Mall, Clock Tower, and Arena Mall (all managed by Knight Frank) which have redefined shopping. This is on top of other numerous smaller malls and arcades that continue to rise within the CBD and in suburbs like Ntinda, Bukoto, Naalya, and Entebbe.

Over the years, sectors like food and beverages, beauty and cosmetics, electronics, and home furnishing have seen growth with more local businesses. The growth that Uganda’s economy has undergone since independence has and continues to attract international retailers namely Adidas, Puma, KFC, Woolworths, Carrefour, LC Waikiki, MRP, and Hummel among others. The growth would also see formal property agencies like East African Property Agency established, introducing revolutionary standards and procedures regarding how real estate property transactions and operations would be developed and managed to international best practices. It’s upon this foundation that Knight Frank would be established, opening its doors in 2000, and ultimately becoming the longest-serving international property consultancy firm in the country. Having been mostly involved in Valuation and Advisory, the revolution of the economy and steady growth would see Knight Frank spread its expertise across more service lines which included Residential and Commercial Agency, Research and Consultancy, and Retail Management in 2012.

In the early 1990s, as Uganda was warming to the increasing options in shopping malls and supermarkets, the internet happened. This would be followed by the birth of the mobile telephone in 1995 which would introduce yet another new phenomenon – mobile money transactions in 2009.

There is no doubt that the road ahead for Uganda’s retail sector is promising as we continue to see international Retailers introduce and establish powerful brands in the market. With the initial stages of oil and gas exploration in the western region being expedited, hence attracting more expatriates into the country, high economic growth is projected, as well as significant growth in consumer spending, all of which will boost the retail sector which is predicted to grow exponentially.