Informal sector groups have partnered with the Transport Union Alliance to create a common market for products and services, in a move aimed at expanding business opportunities, strengthening supply chains and increasing the sector’s contribution to Uganda’s economy. The partnership will link businesses providing services with those dealing in goods and other products, allowing members to buy, sell and refer customers across different sectors.
Asuman Mwanje, chairperson of the United Informal Sector Forum, said the organisations involved operate across 18 sectors linked to 84 associations, creating a large business network that could generate significant economic value if properly organised and integrated into formal business systems. Mwanje said the initiative will also encourage businesses to address longstanding challenges associated with informality and limited compliance by promoting formalisation, value addition and increased productivity.
“What we are going to be doing is create a general market for every service and product that are dealt in between both sides,” he said. He said the proposed market will connect businesses involved in service provision with those dealing in physical goods, creating new business opportunities and strengthening economic linkages across different sectors.
The informal sector includes a wide range of enterprises, including tailors and fashion designers, textile businesses, transport operators, agricultural enterprises and businesses involved in value addition. Mwanje said bringing the businesses together would expand access to markets and services while enabling entrepreneurs to make better use of the economic opportunities within the sector.
Christopher Kawamara, a metal fabrication and real estate businessman, said the partnership would give him access to a wider customer base for the metal products he manufactures. Kawamara said businesses within the Transport Union Alliance would, in turn, have access to a ready market for their products, creating opportunities for sustained trade among members.
He said such partnerships are important because entrepreneurs depend on one another for customers, supplies and other services needed to grow and sustain their businesses. Roset Nayiga, a salon operator, said about 50,000 salon operators across the country under her leadership could benefit from the partnership.
Nayiga said members would be able to access a wider range of salon products at lower prices, while some businesses could also obtain stock on credit and pay later. She said the arrangement could help address some of the challenges faced by small businesses by providing them with ready markets while giving them access to products supplied by other members of the alliance.
Fred Ssenoga, Chief Executive Officer of the Transport Union Alliance, said the partnership could bring together between 13 million and 15 million people engaged directly or indirectly in business and supporting one another through their economic activities. Ssenoga said the combined strength of the businesses could make a significant contribution to Uganda’s gross domestic product and stimulate economic growth.
He said the partnership would create a large pool of producers and consumers, enabling people to access products and services while allowing entrepreneurs to start or expand businesses with relatively low capital requirements. Frank Mawejje, chairperson of Boda Boda Riders in Uganda, said greater unity and coordination among informal sector businesses would enable entrepreneurs to support one another in their day-to-day operations.
He cited the example of a business owner referring a customer to another entrepreneur when a required product or service is unavailable at their own business. Mawejje, however, called for the partnership to embrace digitalisation to keep pace with changing consumer behaviour and ensure that the sector’s large membership translates into a stronger customer base.
He said the large number of people involved in the informal sector presents an opportunity to create a ready market for products and services if businesses coordinate and work together. The partnership comes amid wider efforts by informal businesses to improve organisation, formalise their operations, increase productivity and strengthen their contribution to Uganda’s economic development-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
