Kenyan

Out to Lunch

#OutToLunch: Corporate farmers, side hustlers must pay “school fees” to succeed

By Denis Jjuuko Over the weekend, a video surfaced online of a Kenyan who grew watermelons, looked for buyers, loaded them to the city, failed to sell them, stored them and they fermented overnight. The video went viral largely because many Ugandans especially those who hold day jobs in corporate bodies could relate. Known as ‘corporate farmers’ and under pressure to have a side hustle, many start businesses such as farming. These ventures — small gardens or even large farms, salons, clothing shops (known as boutiques), bufundas (small bars), grocery shops (labeled supermarkets), and restaurants among others are everywhere. One in Uganda must be seen to be doing a side hustle business or they are considered failures. There is a historical perspective to it. In the 1990s, many civil servants were retrenched and had no jobs. Kids saw how their parents or guardians without any other income suffered and swore not to suffer the same fate. In order to avoid those missteps, many decide to be different. Those who survived retrenchment saw their mothers open grocery shops at universities or doctors’ villages to supplement the family income. Today, many people are driven to start farming. Favourable weather patterns, abundant arable land, a growing population, affordable labour etc. On paper and indeed like for most businesses, it is all rosy. It doesn’t, however, take long before stories start springing up on social media platforms. Grown something and got nothing out, the platform is available to broadcast. But for many, the desire for a side hustle is hard to contain. In order to be different from their parents and grandparents, today’s side hustlers tend to think differently. Like the Kenyan watermelon man, if you harvest a sizeable number of them, hire a truck and take them to the market yourself, you would cut out the middlemen and make significant returns than if you sold them at the farm. Without much research or due diligence, the corporate farmer arrives at the market and everyone laughs at them. Nobody is willing to buy. There is a story of man in a suburb just outside Kampala known as Muvunza. The story goes that he one day arrived in Kampala with a truckful of matooke from his garden. He moved around several markets in Kampala and they were giving him peanuts per a bunch. He decided to offload the matooke at his home and watch them rot. The locals nicknamed him Muvunza (the one who lets stuff rot). Many corporate farmers or side hustlers are Muvunzas. If they are not letting matooke rot in their compound, they throwing money after money in ventures that are not sustainable or profitable. High rents, taxes, a small customer base and many other hinderances don’t enable them to make profit. Sometimes they don’t know because the salaries at their formal jobs cushion them from these losses. It is when they start running these businesses fulltime that they realize that the ventures were sinkholes. The main challenge for most hustlers is lack of experience or giving up before they have paid what Ugandans call “school fees.” For every venture, it will take time for the entrepreneur to crack it. To establish a network of clients or to be known for doing something requires time. If watermelons are your thing, the traders in Nakasero, Nakawa or Kalerwe markets won’t know you if you deliver once and even on the wrong day. They already have their suppliers. So, you will need to court them over time. They aren’t going to abandon guys they have been dealing with for the last 10 years just because you have shown up with a truck of watermelons or tomatoes. Maybe you even arrived when they stocked up a day before. You convince them one by one over a period of time. If you are to do farming and you do it for one season, there is no way you are going to succeed. Those who succeed do it for over time. Some seasons they make profits. Other seasons they make losses. Once they gain experience, they can then stabilize and be able to predict their incomes. By this time, the “school fees” paid have started to provide a return on investment. Networks have been established That is how traders in the Kampala markets start to call and place orders before even the seller arrives. That is how credit lines are established. That basically means that there is no excuse for experience. The writer is a communication and visibility consultant. djjuuko@gmail.com

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Out to Lunch

#OutToLunch: Ugandan businesses embracing the region signals good things to come

By Denis Jjuuko For many years, Ugandan businesses relied on many things Kenyan. Employees in the hospitality industry, advertising, creative, transport, logistics and even banking among others. Of course, Kenya is a bigger economy which has also not been largely disrupted by war. They had expertise that we lacked. So, it must have been easier for them to set up here or sending their goods to Kampala. Of course, there were Ugandans doing lots of stuff in Nairobi. In the 1970s and 1980s, many Ugandan experts were exiled in Kenya working as medical doctors, lawyers, teachers, businessmen, and political ‘external wingers’ among other jobs. Singers Jose Chameleon and Bebe Cool got their breakthroughs after recording in Nairobi studios. Later, Ugandan radio presenters made Nairobi home. Private radio had developed faster in Uganda after the liberalization of the airwaves in 1993 than in Kenya. However, if you needed technical expertise on many things, Kenya seemed to be the ideal destination. Ugandan entrepreneurs like James Mugoya and Bulaimu Muwanga Kibirige (BMK) had set up businesses there in the construction and automotive sectors among others. But still, there was an imbalance. Kenyan businesses set up more in Uganda than Ugandan businesses did in Kenya or elsewhere. That trend seems to be changing. First, many Ugandan big businesses like banks were run by Kenyans and other foreigners. There was a time a few years ago when almost all the banks in Ugandan had foreign CEOs. Today, the majority of banks are run by Ugandans. And some Ugandan executives are now running big businesses in Kenya, like Bamburi Cement. Second, in recent years, we saw Omar Mandela set up his popular Café Javas in Nairobi. It became an instant hit with the hippy Nairobians looking for a place that is well known for its customer care and great food. Kenyan managers had been running the hospitality industry in Uganda and now, a Ugandan businessman was taking the game to their capital. Café Javas today has more outlets in Nairobi than Kampala and Entebbe combined. Perhaps, other Ugandans are learning from Mandela. Since last year, we have had at least three Ugandan businesses in the entertainment and marketing world set up in Nairobi. Fenon, Swangz Avenue and Talent Africa Group all now have offices in Kenya. Previously, the entertainment and marketing businesses relied somewhat on Kenyan experts and even equipment to pull off events and marketing campaigns. Ugandan businesses are now playing on their grass. In tourism, we are also seeing Amos Wekesa’s Great Lakes Safaris operating a hotel in Tanzania. A few years ago, we saw Centenary Bank starting operations in Malawi. Many other Ugandans are also doing business in southern Africa. The BMK Group has operations in Zambia and many others have taken the same route. Rwanda, South Sudan, Burundi and the Democratic Republic of Congo are some of the other markets where Ugandan businesses are operating. It is remarkable that Ugandan businesses are growing and expanding in the region. Previously, we looked on haplessly as largely Kenyan businesses took over markets even after the Ugandan army had pacified some of those countries. South Sudan comes to mind. Ugandans for example in South Sudan operated the smallest of businesses — curio shops, barber kiosks and roadside restaurants. Kenyans operated banks and other big stuff thereby gaining more from regional trade. Uganda’s economy is largely concentrated within a radius of 80km of Kampala. That limits growth for some of the businesses yet economies like Kenya are way bigger than ours. The East African Community has a population of nearly 350 million people with a nominal GDP of about US$350 billion making it a market that we can’t simply ignore. Uganda has been pushing for exports into these regions while facing many barriers including infrastructural ones in countries like the DRC. And if we only export there after even constructing their roads, we miss out on some opportunities that are extended to registered businesses in those markets. However, we shouldn’t be limited to only the region. With geopolitical pressures across the globe, there is even more need to expand to take on sectors that may not be well catered of as global players concentrate on their main markets or scale down in others. Businesses which may not be ready to go it alone should look for companies they could merge with or acquire to get a footprint in those particular markets easily. The writer is a communication and visibility consultant.

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