Are South African businesses a pillar of Uganda’s economy?

Are South African businesses a pillar of Uganda’s economy?

Civil Aviation Authority and South African officials at the launch of Airlink Airlines PHOTO BY EMMANUEL KAVUMA What you need to know:

Footprint. The influence of South African businesses in Uganda can be felt anywhere, not just in a shopping mall. From banking to retail trade, telecommunications and aviation, South African businesses have had mixed fortunes here.

When you take a stroll around any big shopping mall in Kampala city, you will notice multiple South African investments standing out.

These investments cut across sectors such as; telecommunications, breweries, banking and finance, retail, insurance and energy.

Most of these businesses have gone a long way in demonstrating good business bi-lateral relations between Uganda and South Africa.

Movement of capital from South Africa has had a huge impact on the Ugandan economy.

This perhaps can be explained by a wave of economic liberalisation programmes that swept across the African economies in the early 1990s.

It gave encouragement for these businesses to take advantage of market gaps and opportunities in an economy that was struggling to return to its feet.

The influence of a South African business in Uganda can still be felt anywhere, not just in a shopping mall.

On a hot midday afternoon of September 19th last year at Entebbe Airport, Airlink, a South African regional airline, had made its maiden flight for its Johannesburg- Entebbe service route.

In a small but heavily guarded event attended by journalists and top Ugandan and South African officials; another business partnership had been sealed between the two countries.Airlink, though viewed as a competition to Uganda Airlines operating commercial flights on the same route, is a beneficiary of the Yamoussoukro multiple designation policy that allows more than one airline on a route and removal of frequency and capacity limitations.The airline had entered into the footsteps of South African Airways (SAA) which exited Uganda’s aviation market in early 2020, in what it described as, “the need to restore the SAA’s commercial health and create an airline that South Africans are proud of!”“Entebbe is not just Uganda’s primary tourism and trade route, it is also strategically positioned for access to the wider East African Community nations and the Great Lakes, which represent significant markets,” Duke Morosi, Airlink’s executive representative said in a short speech at the event.At the same event, State Minister for Transport Fred Byamukama, who presided over the launch at Entebbe Airport, hailed Uganda’s trade ties with South Africa, which he said had, […]

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.

Leave a Reply