Former Forum for Democratic Change (FDC) party presidential candidate Kizza Besigye has voiced his concerns about the challenges faced by small and medium-sized enterprises (SMEs) in Uganda, attributing their struggles to unfair competition from multinational corporations and inadequate government support.
Besigye, a staunch advocate for local entrepreneurship and economic empowerment, argued that multinational corporations and large-scale manufacturers have created an uneven playing field, making it difficult for smaller businesses to thrive.
Speaking at a press conference held on Monday, April 15, 2023, at Katonga Road Offices in Kampala, Besigye highlighted the advantages enjoyed by big corporations, including economies of scale, access to cheap financing, and government support such as tax exemptions and free land arrangements facilitated by State House connivance.
He emphasized that these advantages allow multinational corporations to produce goods more affordably, often through assembly processes that circumvent taxes and import duties, thereby undercutting local businesses and hindering their ability to compete effectively.
Besigye pointed to the textile industry as a prime example, where local manufacturers struggle to compete with cheap imports from countries like China, Malaysia, Italy, the US, and the UK. He called for increased government support for local entrepreneurs, including access to affordable financing, training programs, and marketing assistance.
Expressing concern over the dominance of foreign businesses in various sectors of the economy, Besigye underscored the need for policies that promote local entrepreneurship and protect domestic industries from unfair competition. He criticized the current taxation system, which imposes hefty taxes on imported goods, making it challenging for local traders to remain competitive.
Besigye singled out the Uganda National Bureau of Standards (UNBS) for failing to crack down on factories producing counterfeit products, thereby exposing local businesses to unfair competition and economic hardship.
Besigye’s remarks reflect broader criticisms of the government’s economic policies, which have been accused of failing to address unemployment, poverty, and inequality. He has consistently advocated for greater investment in education, healthcare, and infrastructure, as well as increased support for local entrepreneurs and small businesses.
While some view Besigye’s views as populist and unrealistic, many Ugandans resonate with his message, feeling marginalized by the country’s economic disparities. His criticism of multinational corporations and calls for fair competition and government accountability have sparked debate and raised awareness about the challenges facing SMEs in Uganda.
Besigye also addressed the issue of corruption, highlighting its detrimental impact on the economy. He criticized the government for failing to pay public debt and local contractors, exacerbating the challenges faced by struggling Ugandan businesses. Besigye emphasized the need for transparency and accountability in tackling corruption, urging the government to prioritize the interests of its citizens and ensure a level playing field for all businesses.
