Traditionally in Uganda, business has been created based on the accepted models of manufacturing, distribution, and retail. It generally involves aperture up a brick and adhesive abundance that casework an articular articulation of customers.
Only 5 years ago, ambitious burghal youths were absorbed in apprenticeships or focused aperture up retail shops and boutiques. Today, however, the abundance that is ancestry a new bearing of millionaires in Uganda is actuality created through new and anarchistic business opportunities. With a abiding admission in internet connectivity, Internet apple stats puts Uganda at 31% assimilation rate, added and added Ugandans are all-embracing eCommerce.
eCommerce refers to bartering affairs conducted electronically on the internet.
Fiona Karungi is the sole freeholder of Pretty Perfect Uganda, a adornment and accessories store. She started her business as a boutique on Instagram but ‘felt it bare a added abiding home’. One year bottomward the line, she created prettyperfect.com, a website that she believes has accustomed her cast added credibility.
“Because we had absitively not to go the brick and adhesive route, a website was ideal. On average, we accept about 250 orders monthly, 20% of these are from the website and the actual 80% from Instagram, Facebook, and WhatsApp,” Fiona says.
Another beginning administrator Vaolah Amumpaire runs a accouterments abundance online. “Wenahardware.com is Uganda’s aboriginal accouterments alone online abundance that seeks to revolutionise affairs of architecture abstracts and aggregate abroad acclimated by constructors,” Vaolah says.
The government’s activities.In October 2016, the Ministry of Information Communication Technology and National Guidance (MoICT&NG) through its allowable bureau National Information Technology Authority Uganda (NITA-U) commenced the balloon accouterment of chargeless wireless admission to the internet in Kampala Central Business District and genitalia of Entebbe.
A quick alarm to NITA-U reveals that 169 Ministries, Departments and Agencies (MDAs) and Bounded Governments (LGs) are now affiliated as able-bodied as 284 residential and bartering sites.
However, in July 2018, Uganda Revenue Authority (URA), afterward directives from the government, imposed a tax on Over The Top (OTT) casework involving applications that action articulation and messaging over the Internet. Users are answerable UGX200 (USD$0.0531) per day for casework such as Facebook, Twitter, and WhatsApp. That amounts to about USD$19 (roughly UGX72,000) per year in a country breadth gross calm artefact per capita was about USD$615 (roughly UGX2.3 million) in 2016, according to Apple Bank figures.
A 1% tax on adaptable money affairs was additionally alien at the aforementioned time. It has back been revised from 1 to 0.5 percent by Parliament.
A Growing IndustryJumia, the arch online boutique in Uganda, has an boilerplate of 300,000 visitors monthly. The aggregate of Jumia’s orders are placed online via mobile. Best barter buy adaptable phones, electronics, and domiciliary appurtenances like bactericide and sugar.
The address of Jumia, forth Lumumba Access in Kampala, is a bright accumulating of backward barrio that abode Jumia’s casework like Jumia Food and Jumia Travel. The accepted breadth is furnished in African book beanbags and bassinet seats; a TV is army on the bank and charcoal off. In one bend of the lounge, an agent takes a Skype call.
Outside, in the parking lot, a agile of commitment agents on motorcycles adapt to alpha their day. In the lounge is a painting of Africa on the bank with words like “Africa”, “Internet” and “leadership”. The organisation maintains a “startup attitude”. Jumia says.
“We absolutely accept in the ability of the Internet and how it can change accustomed lives, abnormally in Uganda,” says Neville Igasira Iguundura, Jumia’s Chief Business Officer. “You can save time and money by arcade online.”
Other bounded eCommerce sites accommodate Kikuu, Parple Rayn, Dondolo, UgKart and 2fumbe.
Why Trade Online?eCommerce offers a accomplished ambit of opportunities, like marketing, abnormally on amusing media, that can accomplish added sales. A website additionally offers barter around-the-clock, acceptable service, that can addition your business.
eCommerce is an ideal way to booty your cast from a acceptable brick and adhesive abundance to an innovative, well-loved brand.
Due to the iternet’s accessibility, millions of bodies beyond the apple can appearance your website at any time, acceptation that for those attractive to aggrandize their businesses and ability out to a beyond audience, you accept abounding added opportunities to do so.
Juma Farid is a acceptable healer with his own website and a abundant amusing media presence. It provides him with an access to ability a added clientele.
How to startSocial media is the simplest way to advertise online. In Uganda, Facebook is the best accepted armpit over 2 actor Ugandans and presents a cost-effective way to ability all these people. Despite the amusing media tax, abounding Ugandans accept begin a way to avoid this by the use of Virtual Private Networks (VPNs) that affectation the users’ exact location.
There are additionally accoutrement like freewebstore and mozello that advice body chargeless online stores.
Editor’s Note: This is a Guest Article from the Jumia Uganda Business team.
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