The Resource
Although Uganda’s business environment is very challenging and sometimes intimidating, there are several Ugandans who have succeeded under it as business people, as entrepreneurs or as industrialists. The resource uses lessons from these enterprising indigenous Ugandans to guide you in succeeding in the business venture you choose to undertake.
His business life
Mr. Batuma founded Kigezi African Wholesale Company, shortly after Uganda’s independence. In 1969, at age 42, he resigned from civil service and went into self-employment. By 1970, his company had become competitive in an environment dominated by foreign businesses (predominantly Asian). He was among the first people in Uganda to start livestock farming in wetlands; he established an industrial dairy farming in Kigezi region. Later, Mr. Batuma became the first Ugandan to venture into commercial wine making; made several wine brands from local fruits.
Lessons from his business life
Positive lessons
- The resignation from employment highlighted the need to focus, if one was to succeed in business. This is especially true in 21st century, where business competition is becoming stiffer.
- Making wine was an example of value addition. Batuma’s success in wine making meant that other Ugandans, including you, can go beyond primary production and remain in business.
- Finally, Mr. Batuma’s life dispelled the view that to succeed in Uganda, one needs to be dishonest, manipulative, corrupt, etc. His successful business life was largely testimony of hard work, dedication and honesty.
Negative lessons
- None of Mr. Batuma’s businesses grew into a national enterprise. Yet, he had a chance to achieve this goal.
- Joining business at a relatively old age (42 yrs) could have contributed to this “underachievement”, since after age of 40, people usually become more cautious. More importantly, Mr. Batuma, like most other entrepreneurs in Uganda, perceived and pursued business growth in terms of running multiple businesses; the concept of avoiding to put all one’s eggs in a single basket. It is often difficult for any of the businesses to grow to fullest potential when the owner has ‘divided’ attention.
His business life
Mr. Mulwana started business when relatively young. By age 25, he was already in import-export business. The business opened his eyes to a dire need for local production. Thus, in 1967, Mr. Mulwana went into partnership with Chloride (UK) and started Associated Battery Manufacturers Ltd. The venture took off and prospered; two decades later, it became Uganda Batteries Ltd (UBL) with Mr. Mulwana as sole owner. UBL is one of the leading producers of motor vehicle batteries in Uganda.
Mr. Mulwana’s desire for production did not stop at making batteries. He set up Ship Tooth Brush Factory Ltd to make tooth brushes in Uganda in early 1970s. The enterprise grew into Nice House of Plastics Ltd, manufacturing various household products, writing instruments and packaging products. At the time of his passing away, at least one out of every 10 Ugandans was using a product made by Nice House of Plastics Ltd. From 1980s onward, Mr. Mulwana broadened into dairy farming, horticulture, tree planting and property development.
Lessons from his business life
Positive lessons
- Mr. Mulwana’s life supports the view that entrepreneurship is a talent that flourishes regardless of one’s level of education.
- The need for local production remains high in Uganda, exemplified by the increasing levels of unemployment and high bill for imports. This need is reinforced by the advantageous geographical location that makes Uganda an ideal country for exports to countries in the expanded East Africa region. In this regard, Mr. Mulwana’s life:
i) Proved that indigenous Ugandans too can become industrialists.
ii) Showed that one can start small and ends up a manufacturer; what is needed is curiosity, determination and continuous learning.
iii) Taught that it is not through extravagance that one earns recognition and respect in society.
iv) Challenges import traders in Uganda who appear to lack vision and courage to partner with foreign suppliers and start local production. Instead, it is Chinese, Indians, etc., usually enticed by politicians, coming over to start some local production.
Negative lessons
- While some of Mulwana’s businesses grew and acquired national prominence, hardly any became a regional enterprise. Yet, he had chances to expand his business (es) to regional stature, including through mergers or buyouts. But he chose to grow through starting and running numerous businesses. By spreading out into so many unrelated businesses however, Mr. Mulwana robbed himself of a chance to become smart and competitive in regional markets and beyond.
Her business life”
Mrs. Mbire trained and worked as a teacher long before Uganda gained independence. Later, she obtained a diploma in hotel management and worked at Apollo Hotel (presently Sheraton) up to 1973. She was transferred to Uganda Hotels, but resigned and went into self-employment. She opened a flower shop, Kampala Florist. Later, she set up a garment’s factory, the Pop-In Industry. Unfortunately, the looting that followed 1979 liberation war grounded her garment’s factory. After 1979 liberation war, Kampala was hit by a shortage of bread. Mrs. Mbire responded to this challenge by starting a bakery called Home Pride. This was the first bakery to introduce sliced bread in Uganda. She broadened into interior design business and set up a shop, Habitat Interiors, in Kampala. In 1984, Mrs. Mbire co-founded Uganda Women’s Finance & Credit Trust.
Lessons from her business life
Positive lessons
- When blessing us long before birth, God is ‘blind’ to sex, tribe, religion, etc. Thus, believe in yourself regardless of your gender, tribe, race and religion; and strive to bring out the best in you; you will be shocked by achievements that will litter your life-path.
- Because of poor career guidance in Uganda, many people find themselves in occupations where they under-utilize themselves. Mrs. Mbire life brings out the need to discover your passion, and look out for opportunities to re-start your life, even long after education.
- Behind various challenges facing Uganda are business opportunities waiting for exploitation. The key question here is, can you detect any business opportunity behind (i) the increasing degradation of Uganda’s environment? (ii) the high levels of malnutrition in the country? (iii) the increasing number of’ Boda bodas (motorcycles) on our roads, etc. If you can detect a business opportunity behind any challenge facing Uganda, chances are you are the one nature chose to have it addressed, unless you force nature to eventually look for someone else. But why allow nature to look for another person? For it is by helping in addressing that challenge that your life will stand out!
Negative lessons
- Mrs. Mbire’s businesses are unlikely to be passed on to the next generation, for they can hardly survive in this increasingly competitive business environment. Yet, she had the chance to leave behind a legacy, in form of a vibrant business entity, if only she had established a particular business and directed all her time, energies and resources (mental, social and financial) into developing it to its fullest potential.
His business life
Mr. Otwani was inducted into business by his father, when he was still a boy. In 1950, he started a restaurant at Uganda Cement Industries (later named Tororo Cement Industries). He broadened into other businesses. First, he ventured into buying fish from Busia and transporting it to Tororo for sale. By 1958, Otwani had made enough money to buy a Bedford lorry. In 1960, he expanded his food business by opening up a butcher in Tororo. With his truck, Otwani bought cattle from as far as Western Kenya, which he slaughtered at his butchery and supplied meat westwards as far as Jinja, and sometimes Kampala. In the 1960s and 1970s, Otwani setup and ran shops in Kampala and Tororo, and also acquired several properties.
In 1982, when government encouraged banks to give loans to businesses, Otwani used the opportunity and signed for 40 buses. He stated Akukuranut Bus service that traversed the whole of eastern Uganda. By 1985, money from the buses had paid off the loan. Unfortunately, Akukuranut Bus Service lost all its fleet through the political turmoil that subsequently befell Uganda. In 1990s, Mr. Otwani went into Construction.
Lessons from his business life
Positive lessons
- You can start small in business and accumulate capital slowly for expansion, provided you stay patient and focused.
- One of the characteristics of an immature economy like Uganda is availability of numerous business opportunities. The opportunities are available as virgin (not yet exploited) or seized but underutilized. Mr. Otwani’s entry into public transport shows how an under-utilized business opportunity can be exploited. This brings out the danger of being thin on the ground, as a result of spreading into so many unrelated businesses; one is always at risk of being edged out by a focused local entrepreneur or by a foreign and more sophisticated entrepreneur.
- Mr. Otwani’s switching to construction teaches the lesson of not to despair when bad lack strikes a business.
Negative lessons
- In developing countries such as Uganda, a business person should avoid the government of the day misunderstanding him/her. But at the same time, the person should ensure that his/her business(es) does not get entangled into politics.
- Failure to achieve this delicate balance undermines one’s business(es); they prosper, often abnormally, when a pro-government is in power. But sustainability becomes difficult, especially when the pro-government is out of power. The late J. S. Batuma and the late J. S. Mulwana exemplify local entrepreneurs who tried to get that delicate balance right.
His business life
Mr. Wavamunno started business while in his early 20s, by buying and selling agricultural produce in Mbarara. He broadened his businesses by setting up Whitner Dry Cleaner, Western Driving School in Mbarara and special hiring transport services. The latter gave rise to a bus transport company, the Rugaaga Bus Service Co. Ltd. Wavamunno’s success in business created local resentment. The resentment brought him problems during upheavals that followed the overthrow of the first government of Obote in 1971. He relocated to Kampala where he started Spear Touring Services.
In 1974, Mr. Wavamunno obtained Mercedes Benz Franchise in Uganda and incorporated Spear Motors Ltd. In 1978, he acquired 45 percent shares in United Assurance Company Ltd. In early 1980s, he setup GM Company Ltd to build frames of trucks and buses. In 1994, he bought a reputable government company, Uganda Metal Products and Enameling Company Ltd (TUMPECO) which he merged with GM Company Ltd to form GM TUMPECO Ltd. In 1988, Mr Wavaunno co-founded Nile Bank, one of the first indigenous banks in Uganda. From 1990s on wards, Mr. Wavamunno broadened into Radio and Television Broadcasting, drinking water, publishing, farming, etc.
Lessons from his business life
Positive lessons
- Humble beginnings often make good ending; it is utter ignorance to despise young people conducting simple businesses. This is especially true of young people who have not gone far in school. The educated young people are often in business sometimes to pass time, i.e. they are on the look out for opportunity into employment, politics or to leave Uganda in search of greener pastures. But those who have not gone far in education tend to focus on making it in business – and they usually succeed, as Mr. Wavamunno illustrates.
- In business, it is what you do, not what you know, that counts.
- Once you attain outstanding achievements in society, you will be noticed regardless of your level education. Unfortunately, these achievements can lead to local resentment, especially if you are in a rural or a semi-urban setting.
- In business, social capital (network of friends and colleagues) is more important than financial capital. Fortunately, it is easier to get it; all you need is a pleasing and trust-worth personality.
- Mr. Wavamunno documented his life by writing the book, “Gordon B. K. Wavamunno, The Story of an African Entrepreneur”. Subsequent generations will learn about Mr. Wavamunno not through hearsay, speculations or rumors, but by reading his business life as he himself saw it/wanted it to be seen and told.
Negative lessons
- Mr. Wavamunno succeeded in building a business complex under his name. Unfortunately, you can hardly see his “foot print” beyond Uganda (often beyond Kampala). This is a serious short coming for a man who has been in business for a very long time and at such a highly connected level.
- The primary cause was, once again, the spreading of oneself into so many unrelated businesses. “Only God can be all knowing, all efficient, all effective, etc. For us human beings, you can become so in only a specific area.” It is by paying heed to this natural law that businesses grow to their fullest potential, i.e. becoming competitive at national, regional, continental level and beyond.