Uganda hit by the departure of several multinationals
ShopRite has decided to leave Uganda, along with Game and operator Africell.
© BRUCE BENNETT / Getty Images via AFP
Text by: RFI Follow
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In Uganda, for a month, announcements of the departure of several international companies have been linked.
Three companies, in the sector of supermarkets and telephone operators in particular, have confirmed to close their activities in the country by the end of the year.
Cascading departures that worry economists.
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With our correspondent in Kampala,
Lucie Mouillaud
The ShopRite stores then those of Game and the most recent: the operator Africell… In one month, three large international groups announced that they were ending their activities in Uganda.
For economist Africa Kiiza, the global crisis linked to Covid-19 is an accelerator, but not the main cause of these departures.
In recent years, many companies have left the Ugandan market long before the start of the pandemic, such as the airline company British Airways or the Kenyan supermarkets Uchumi Supermarkets and Nakumatt.
Fear of new beginnings
Closures attributed to the low purchasing power of the middle class, too small to support the activities of large groups.
The researcher also claims that the many taxes on companies weigh on the budget of companies.
The slowdown in the economy due to lockdowns then worsened the situation: in 2020, growth tightened to 2.9%, against 6.8% in 2019. Economists now fear new departures from international companies.
Among the sectors at risk: banking and insurance.
► Also listen: Africa economy - Uganda: companies are worried about the consequences of the new internet tax
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