Uganda in bold move to regulate supermarkets

Local supermarkets yet to be engaged

William Kakuru, the general manager for Capital Shoppers – Ntinda branch, a local retail chain with four outlets in Kampala told The Independent on Sept. 23 that they have not been consulted by the trade ministry on the planned guidelines.

However, he said as local supermarket captains,   they welcome the government policies that support business growth.

“Suppliers want to be paid on time,” Kakuru said, adding, “If they say that suppliers have to be paid in 60 or 90 days that will be good for them [suppliers]; we are ready to respect the guidelines.”

He said Capital Shoppers works closely with its suppliers and pays them on time, a scenario that has seen them out of troubles similar to those of Uchumi and Nakumatt.

Kakuru said the planned guidelines should look at closing gaps in standardisation of goods, formalisation of businesses and capacity enhancement by suppliers.

Speaking on behalf of affected suppliers, Mubaraka Nkuutu Kirunda, the acting executive director at Uganda Manufacturers Association (UMA) told The Independent on Sept. 23 that the looming supermarket guidelines are welcome and should be put in place soonest.

“We have been demanding for them for years now and we have not seen them; it is good they are talking about them now,” he said.

Nkuutu said they are engaging the trade ministry to ensure that an independent law is put in place instead of guidelines alone.

But Onen said enacting a law would take long because it would involve Parliament.

Nkuutu said that many suppliers including Ugachick Limited and other members of UMA that have previously supplied Uchumi and Nakumatt have had cash flow problems because of the unpaid debts. He said their prayer is that his members get paid.

He said implementation of the guidelines would complement the Buy Uganda Build Uganda (BUBU) policy and ultimately boost growth of locally manufactured goods, create jobs and wealth of the population.

“Guidelines should be designed in a manner that does not hurt anyone; both supermarkets and suppliers need to grow,” he said.

Meanwhile, in separate interviews with The Independent, Augustus Nuwagaba from REEV Consult International Limited and Isaac Nkote, a senior economics lecturer from Makerere University Business School (MUBS) said new legal and regulatory frameworks to guide business operations are welcome but will only achieve results when the economy gets better and people’s disposable incomes are growing to support struggling businesses like supermarkets.

They also said the businesses need to practice good corporate governance principles, hire good managers, minimise costs and negotiate with suppliers on payments in addition to looking for capital to invest, expand, innovate and remain afloat.

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