Micro and small businesses in Uganda face a bleak future with a new report warning that should the current lockdown measures persist for six months, majority would close shop.
The report results indicate that small and medium businesses in the country have experienced the largest effects of the risks associated with Covid-19 compared to larger businesses.
"Specifically, nine out of ten businesses report experiencing an increase in operating expenses due to preventive measures instituted by government to curb the spread of the virus," the report notes.
Access to inputs used by micro and small businesses particularly in the manufacturing and service sectors has also been greatly affected, reducing production while measures such as availing sanitiser, soap, hand washing facilities, and social distancing at work premises have resulted in a slight increase in operating expenses for businesses.
The report notes that the prevailing situation provides Uganda with an opportunity to develop a critical domestic value and supply chains so that businesses, particularly MSMEs, can have a stable source for their inputs, while saving on the scarce foreign exchange.
