By Julius Businge
In Uganda's dynamic retail scene, supermarkets such as Carrefour, Quality Supermarket, Capital Shoppers, Fraine, and Mega Standard are increasingly championing local businesses. This shift comes in the wake of the exit of several Kenyan and South African chains like Nakumatt, Uchumi, Tuskys, Game Stores, and Shoprite, which left the Ugandan market due to unprofitability and other challenges.
Through the Buy Uganda, Build Uganda (BUBU) initiative, these new retail players are stocking their shelves with a variety of Ugandan-made products, from fresh produce to non-food items. This focus not only generates jobs but also enhances the livelihoods of farmers and suppliers throughout the value chain.
A stroll through Ugandan supermarkets today highlights a significant shift towards local goods, reflecting the country's growing reliance on homegrown products. Thanks to BUBU, locally produced items are increasingly taking the place of imports, transforming shopping experiences and contributing to the economy in meaningful ways.
Carrefour, one of Uganda's leading supermarket chains, has fully embraced this movement, dedicating over 80% of its shelf space to Ugandan-made products. This commitment aligns with the government’s BUBU policy, empowering local manufacturers to scale up, innovate, and meet the rising demand for domestic goods. Officially launched in 2017, the BUBU initiative aims to promote local consumption and procurement, fostering economic growth and self-sufficiency.
The policy encourages both foreign and local investors to prioritize local production, enhancing Ugandan producers' capacity to meet government procurement needs. Additionally, BUBU seeks to improve the quality and competitiveness of Ugandan products in both local and international markets, aiming to create jobs and support the nation's goal of achieving middle-income status.
Many other supermarkets are following suit. Data indicates that the percentage of locally sourced goods varies by supermarket chain and product category. On average, Ugandan supermarkets source a significant amount of their fresh produce locally, though processed items often still rely on imports.
Typically, supermarkets source 70-90% of their fresh produce locally, including fruits, vegetables, meat, dairy, and poultry. This high level of local sourcing is a testament to Uganda’s robust agricultural sector, which provides a diverse range of fresh goods. For staple foods like grains and beans, around 60-80% are sourced domestically. Many supermarkets feature Ugandan brands of maize flour, rice, and beans.
However, the reliance on imports is more pronounced for processed and packaged goods, such as snacks and toiletries, where local sourcing drops to 20-40%. These items often come from neighboring countries like Kenya and South Africa. In the beverage sector, local sourcing is comparatively strong, with companies like Coca-Cola Beverages Africa and Uganda Breweries supplying a substantial portion of soft drinks and juices.
While local sourcing remains low for categories like electronics and cosmetics—often below 10%—efforts are ongoing to increase local sourcing as part of broader initiatives to support domestic industries and reduce dependency on imports.
Supporting BUBU products benefits local farmers, manufacturers, and artisans, fostering job creation and community development. Many of these local goods also meet international quality standards, making it easier for them to compete both locally and globally.
Moreover, the rise of BUBU products contributes to environmental sustainability. Locally produced goods have a smaller carbon footprint due to shorter transportation distances. As retailers like Carrefour prioritize these products, they not only bolster Ugandan businesses but also move towards a greener, more sustainable future.
In conclusion, the BUBU initiative is reshaping the landscape of Ugandan retail. Supermarkets are evolving from mere shopping venues into platforms for economic growth, sustainability, and community development.
