Traders threaten to close shop
Frustrated traders in Kampala, dealing in general merchandise have threatened to shut down their businesses over low turn up of customers.
The desperate traders say for the last two months, sales have been extremely low due to inflation to the extent that they cannot afford to pay rent for their business premises.
Uganda is among several countries that have been hit hard by the high costs of essential household commodities, causing a ripple effect on prices of other goods.
According to Uganda Bureau of Statistics (UBOS), annual inflation stood at 3.7% at end of March 2022 from 3.2% in February. UBOS says the increase is the highest since September of 2018.
The increase in the price of soap and cooking oil prices have been linked to external factor like shortage in raw materials mainly imported from Malaysia.
(Patricia Lindrio, GPJ Uganda)
The traders in Kampala now say that prices of other commodities have risen too, limiting sales to most persons in business. Some say they are compelled to close shop because they cannot raise enough money to cater for other costs including rent.
“I pay 1.3 million for rent monthly, but by the time a month elapses, I have failed to reach even 600.000 shillings, am forced to dig into money for capital to top up for rent, some times I sit here for one week without a customer, how do I pay rent, cater for my other needs,” Stella Naava, a jewelry dealer says
“We have been waiting thinking things will stabilize but to date, nothing has happened, We first thought it was because of Covid 19 pandemic that sales were low, but now its worse, we purchase products but no one buys, I go a whole day with no sales or even a week, I walk on foot to and fro, I just think I should close shop,”Caroline Zawedde, a boutique retailer
Traders threaten to close shop
From soap to cooking oil to fuel, prices of most basic items have hit an all-time high affecting low income earners.
Recently, Prime Minister Robinah Nabbanja said that government was aware of the hiked prices of essential commodities in the country and attributed it to post-lock down issues worldwide.
Nabbanja said the government has looked into the issues of the skyrocketing prices for these commodities and they all point to the increased demand for raw materials following the global re-opening of economies after covid-19 lockdowns.
“We have taken the trouble to find out what is happening elsewhere and the prices are going up. All companies opened up at the same time and they are overwhelmed by the demand in all countries across the globe, raw materials are imported on global demand, that is why,” she said.
She however said the issue of prices is a temporal thing that should change in no time.
Courtesy Photo
