The Executive Director of the Uganda Manufacturers Association (UMA), Ezra Muhumuza Rubanda, has urged Ugandan entrepreneurs and manufacturers to rethink the foundations of their business strategies by prioritising cost competitiveness over the constant race to cut prices.
Speaking during NBS Morning Breeze on Thursday, Muhumuza emphasised that many businesses in Uganda have become overly fixated on price competition, often at the expense of long-term sustainability.
“In our setting, we are so much overtaken by price competitiveness. We forget about cost competitiveness. Make sure your costs are very minimal,” he said.
Muhumuza stressed that business owners must be intentional and disciplined in identifying which expenses are necessary for production and which are not. He warned against incorporating costs that do not directly influence output or add value to the production process.
“Don’t bring into your business costs that do not directly affect the process that will bring about the output,” he advised, noting that unnecessary expenditures are one of the leading causes of financial strain among small and medium enterprises.
A key concern highlighted in the discussion was the failure of many entrepreneurs to factor tax obligations into their business models. Muhumuza pointed out that this oversight leaves many business owners unprepared for statutory remittances, often resulting in operational disruptions.
“Most of the people don't calculate tax in their business equations. You must predict how tax will affect your business from the beginning,” he said.
Muhumuza also underscored the importance of understanding the unique challenges faced by small businesses across the country. He explained that issues affecting entrepreneurs vary widely and require context-specific analysis.
“There are people whose problem is the fuel price. Other people's problem is that the taxi doesn't reach their area. We have now moved to that kind of interrogation level—what is it that is affecting the small businesses to begin with?,” he said.
The UMA Executive Director called on policymakers, financial institutions, and support agencies to adopt more tailored approaches when addressing challenges faced by SMEs, rather than assuming that all businesses are hindered by the same factors.