Ugandan shilling remains unchanged

The Ugandan government has taken a significant step to boost the visibility and consumption of locally made products in supermarkets by urging them to allocate 40% of shelf space to Ugandan goods. Catherine Namujjuzi, Risk & Compliance Manager at Crested Capital, shed light on the rationale behind this move and its potential impact on the market during a recent interview. Namujjuzi highlighted the increasing demand for domestically produced goods despite challenges in competitiveness and pricing. She emphasized the need for local manufacturers to enhance product quality and brand image to match foreign competitors. The government's 'Buy Uganda, Build Uganda' initiative aims to promote local products and improve their accessibility and visibility in retail outlets. By increasing shelf space for Ugandan goods, the government hopes to drive up consumption rates and support local businesses. Namujjuzi acknowledged the disparity in business costs between Uganda and neighboring countries like Kenya, which affects the competitiveness of Ugandan products. However, she expressed optimism that with improved quality and affordability, local goods can better compete in the regional market. Namujjuzi also addressed concerns about the stocking levels of regional supermarkets, noting a shift towards domestic supermarkets and increased loyalty to local brands. While international manufacturers still play a role in the market, she observed a growing preference for Ugandan products. In terms of payment practices, Namujjuzi highlighted efforts by suppliers to implement stricter credit terms, such as upfront payments, to mitigate risks of unpaid supplies. These measures aim to build confidence between supermarkets and suppliers and ensure more efficient payment processes. Overall, Namujjuzi remains optimistic about the future of the Ugandan market and believes that the increased visibility of local goods will benefit both consumers and businesses. The government's push for locally made products in supermarkets reflects a commitment to supporting domestic industries and enhancing economic growth.