1. Executive Summary
Potable Aqua tablets are the world’s leading water purification tablets. We would like to
market these tablets in Uganda, a country that is showing overall stability but is in dire
need of a method of water purification. Uganda has recovered from a violent and unstable
political past to become a constitutional democracy with peaceful elections. This
combined with the independent judicial system make Uganda one of the least risky
African nations in which to do business. Uganda is home to many waterways and ports
which can be used to efficiently transport the tablets into the country. While the water in
Uganda is plentiful, weak infrastructure causes the water to be unsafe to drink. Even if
the water is purified, it is difficult to transport clean water to areas that need it most, such
as the arid northwestern corner of the country.
While many Ugandans live below the poverty line, the communal family structure allows
Ugandans to purchase more expensive products by pooling their resources. Also, more
and more Ugandans are leaving rural areas to find higher-paying work in urban areas.
The income generated in the cities is sent back through rural areas, the residents of which
are most in need of water purification.
The Ugandan government is heavily focused on improving its educational infrastructure.
While far from perfect, more Ugandans are attending school than ever before and the
illiteracy rate is on the decline. This is a positive sign for the viability of Potable Aqua
because as the population becomes more educated, they will also continue to raise their
standards of living. More money in the pockets of Ugandans means more spending
money on helpful commodities such as water purification tablets.
President Museveni has succeeded in installing a stable government with extensive
branches reaching to individual rural communities. Not only is it safer to operate within
relatively stable countries, but Potable Aqua could benefit from the Ugandan
government’s well-organized local network. By convincing the Ugandan government to
help distribute health-related products, Potable Aqua could open up more precise
channels of distribution within the country.
The judicial system in Uganda is independent of the executive and parliamentary
branches, so resolving legal conflicts would be less risky and similarly structured like
court systems in the United States. Another positive sign for Potable Aqua in Uganda is
that Uganda is a member of the African Regional Industrial Property Organization
(ARIPO). ARIPO is a parent, trademark and design protection group of 18 African
nations who work together in agreement that these kinds of protections promote trade and
economic growth.
Business customs and practices are very similar to those in the United States, and are
conducted in English. In terms of communication, time perception, and clothing,
Ugandan business people are not too far off from American business people. One issue
that Potable Aqua might face is in sending female executives to Uganda. It is not
common for women to be employed in Uganda, let alone in a position of power.
2. Most Ugandans are Christians, and the church is playing an increasing role in Ugandan
customs. Islam is the second most prolific religion, A dangerous Christian-based cult
called the Lord’s Resistance Army causes continuous economic, political, and social
unrest as they massacre and enslave fellow Ugandans. Over 200,000 Ugandans have been
displaced by this cult.
Another important highlight for Potable Aqua’s business in Uganda is the popularity of
soccer. Uganda’s capital, Kampala, holds one of the largest soccer stadiums in the worlds
and Ugandans follow their favorite teams and players avidly. This opens up the
opportunity for Potable Aqua tablets to market to consumers through soccer stars. This
could help advertisements overcome the mass illiteracy in Uganda.
3. Cultural Analysis
I. Introduction
Company profile: Potable Aqua is the world's leading water purification tablet
company. The tablets were created at Harvard University by scholars and the U.S. Army
in the 1940s. The iodine compound in the tablets makes water bacteriologically safe to
drink after a 30-minute waiting period. Main consumers of these tablets so far have been
campers, backpackers, and military personnel.
Profile of Uganda: According to the CIA World Factbook, the boundaries of
Uganda were formed by Britain and encompassed a wide range of political systems and
cultures. The diversity of cultures in Uganda have severely hindered the nation from
establishing a functional political system after the country achieved independence in
1962. The political history of Uganda is plagued by violent dictators, massacres, and
human rights abuses. The new president of Uganda, Yoweri Museveni, has promoted
more stability and economic growth in recent years. In January 2009, Uganda took a
nonpermanent seat on the UN Security Council. The population of Uganda is estimated at
32,369,558 people. 50% of the population of Uganda is under the age of 14, while only
2.1% of the population is over 65 years old. The most common waterborne illness in
Uganda is Shistosomiasis, otherwise known as Snail Fever. Potable Aqua water
purification tablets are effective in preventing this parasitic disease.
II. Brief history
The history of Uganda: In 1894, Uganda became a British protectorate. The
country was ruled indirectly by the British until Uganda began its thrust towards
independence following World War II. Kabaka Mutesa II was deposed in 1953 when he
ceased to force his chiefs to comply with the British, only to be restored to power after a
compromise in 1955. Uganda won independence officially at the constitutional
conference in London on October 9th, 1962. In April 1966, Uganda adopted a new
constitution that created the post of president and commander-in-chief, which was filled
by Milton Obote. Obote forced the kabaka from office and took over the palace. In 1967,
revisions to the constitution served to unify various Ugandan kingdoms. In 1971, Maj.
Gen. Idi Amin led a military coup while Obote was out of the country. Some Ugandans
followed Obote to Tanzania, and Ugandan relations with Tanzania have been tense ever
since.
Amin led a noncitizen expulsion in 1972, pushing out many British nationals and
nationalizing UK-owned businesses. Under the reign of terror imposed by Amin, up to
300,000 lives were lost by 1977 according to Amnesty International. The expulsion of
noncitizens had a heavy toll on the Ugandan economy by hindering trade and agricultural
and industrial production. (www.HistoryWorld.net)
In July 1985, Obote was overthrown by Yoweri Museveni and his National Resistance
4. Army (NRA). Museveni established the National Resistance Council to govern the
country. Since taking control of Uganda, Museveni has been able to establish some peace
and prosperity within the country. In 1993, Museveni lifted the ban on political parties
and the country has held elections regularly. Museveni has won these elections with
substantial majority votes.
Currently plaguing Uganda with violence are the activities of the Lord’s Resistance Army
(LRA), a violent sect with religious motivations that deliberately attacks civilians. In the
17-year battle between Museveni’s forces and the LRA, extreme economic dislocation
has created an estimated 200,000 refugees in Uganda.
Clean water availability in Uganda is also a major concern for the country’s government.
In 2004, Uganda hosted a massive conference to discuss the distribution of water from
the Nile river system to surrounding African nations. 10 countries rely on the water from
the Nile system for consumption and crop production. Economically, the relative scarcity
of water when shared amongst these nations has aided in the slow development of
Uganda. (http://www.iexplore.com/dmap/Uganda/History)
According to Unesco.org’s analysis of Uganda’s water sector, the country is struggling to
turn it’s somewhat abundant fresh water supply into a potable source of drinking water.
Only 59% of Uganda’s rural population and 65% of Uganda’s urban population has
access to safe drinking water. The goal of the water sector in Uganda is:
“To manage and develop the water resources of Uganda in an integrated and
sustainable manner so as to secure and provide water of adequate quantity
and quality for all social and economic needs for the present and future
generations with the full participation of all stakeholders.”
Implications: The economic, political and social unrest in Uganda has hindered the
country’s ability to fix its infrastructure. Unfortunately, the country is a long way from
stability. For these reasons, we feel that Potable Aqua tablets have their place in the
Ugandan market. The tablets are relatively inexpensive, long lasting, and can be
transported and stored without special accommodations. The tablets retail for about $11
for a package that will treat 20 quarts of water.
III. Geographical Setting
A. Location
Uganda is a landlocked nation next to the equator. It is bordered by Tanzania, Kenya,
Sudan, Rwanda and Zaire. It is about twice the size of Pennsylvania. The lake along the
Southeast border of Uganda is Lake Victoria. It contains several small islands which lie
within Uganda's borders.
Implications: While water is plentiful in Uganda, it is not safe to drink. The
5. infrastructure of Uganda is not developed enough to turn these water resources into safe,
potable water and to distribute it to the dry areas of the country. Potable Aqua tablets
would make it easier for Ugandans to turn this abundant water supply into drinking
water. It will also help to make distribution of water to the dry areas of Uganda more
viable as the water can be transported in its unsafe form, then turned into safe drinking
water upon arrival by individuals.
B. Climate
Because Uganda lies along the equator, the climate is generally sunny and warm, with
about 254 days of sunshine per year, and a high temperature of 83 degrees. There is little
variation in temperature, and the seasons are defined by wet or dry periods. The dry
season is from December to February and mid-June to mid-August. Rainy seasons are
from March to May and from September to November. Average annual rainfall is about
40 inches. The tops of the mountains of Uganda are often covered with snow.
Implications: This climate is moderate and should not cause any problems in terms of
distribution of Potable Aqua tablets. The tablets are in a waterproof canister, and can
withstand extreme temperatures without losing effectiveness. They are also effective in
treating water collected from rainfall.
C. Topography
Most of Uganda lies on a plateau above sea level. The western border is mountainous,
with the tallest peak (Margherita Peak) rising to 16,762 feet. Uganda's borders include
Lake Victoria, which is the source of the White Nile river. Numerous rivers flow through
Uganda, feeding a multitude of lakes such as Albert, Edward, and Kwania. The
northwestern corner of Uganda is the only are without these water resources nearby.
Implications: The water system in Uganda could provide a good way to transport the
tablets into the country. The overall poor infrastructure in Africa would make it difficult
to transport products by land.
IV. Social Institutions
A. Family
1. The nuclear family: Ugandan families are predominately patriarchal. Most families
have a large number of children, who often contribute to the family's income when they
are old enough. (Ingoldsby)
2. The extended family: The extended family in Uganda is very important. Families are
large and polygamous, and it is expected that the entire extended family (called a clan)
will contribute to raising the children. Children are expected to memorize their heritage,
as ancestry is very important to Ugandan families. The extended family pools resources
to survive. (Ingoldsby)
6. 3. Dynamics of the family:
a. Parental roles: It is expected that the women of the clan raise the children and
perform chores such as cooking and fetching firewood and water. Once extremely
rare, single-parent households headed by women are becoming increasingly
common as more and more men leave their rural homes to find better-paying jobs
in urban areas. (Otiso)
b. Marriage and Courtship: When couples marry, it is not uncommon for the
family of the groom to pay a dowry called ―bride wealth‖ to the family of the
bride. Traditionally, marriages have been parent-arranged, although there is an
emerging trend of Ugandans choosing their spouses. When a woman is married
off, she leaves her own clan and joins her husband’s. It is unlikely she will see her
own family much, if at all, after marriage. Generally, inter-clan marriages are
taboo, although some tribal traditions to permit it. (Ingoldsby) Polygamy is a
common practice, and fits well with the communal structure of family life in
Ugandan clans. Another way a man might acquire a wife is called ―wife
inheritance‖ in which a man will inherit the spouse of a deceased friend or
relative. (Otiso)
4. Female/Male Roles: Changes
Uganda was introduced to major social change during the period of colonialism in which
they were subjected to a variety of languages, customs, religions, and more. Indigenous
traditions are still prominent, but are increasingly fading. Economic change has also had
an effect on traditional gender roles. Subsistence farming is becoming a less viable means
of living, so Ugandan men are migrating to the cities to find work. This affects gender
roles for both parties. While at home, for example, females are often in charge of making
major financial decisions. While in urban areas, men cook their own meals and clean
their dwellings. (Otiso)
Implications: The communal aspect of social institutions in Uganda is a benefit to
Potable Aqua tablets. When communities pool resources, they will be able to afford
commodities out of the price range of a single household. We feel that clean water is
important enough to Ugandans that they will make the purchase of these tablets a priority
within their clans
B. Education
1. The role of education in society
a. Primary education: Children in Uganda start school at the age of 7, if they are
able to attend. Many children are not able to attend school due to illness, lack of
schools in their area, or because they are needed to work in the fields with their
family. Children are in primary school for 7 years. The Ugandan government pays
for four children to attend school per household. However, the average number of
children in a Ugandan household is eight. This means that the larger the family, the
less likely it becomes that a child will be able to attend school. Anushka Asthana
wrote in The Guardian that ―Museveni may have abolished fees, but he could not
pay to feed every child in the country at school, nor provide pens, science
equipment, transport or even clothing.‖ Asthana says that this is the reason why
there are over 750,000 children who cannot attend school. Many children have also
7. been displaced by the violent activities of the Lord’s Resistance Army, as
mentioned in the ―Brief History‖ section. Despite these setbacks, Asthana says that
Museveni and Uganda are leading the way in Africa for education.
Primary schools in Uganda are very formal. Most children want to go to school and
understand the importance of education. Educators are widely revered in Ugandan
society. Some schools in urban areas provide transportation for students to and
from school, but children in rural areas must walk an average of 6 miles to reach
the nearest primary school. The school structures are open bungalows with concrete
floors and metal roofs. (www.ExperienceAfrica.co.uk)
b. Secondary Education: Ugandan children attend secondary school for 4 years if
they are able to. In 2007, the Ugandan government made the first 2 years of
secondary education free for students. This has caused classes to balloon to class
sizes way over capacity. Due to excessively large class sizes and shared materials,
the quality of Uganda’s secondary schools is often called into question. Middle
class Ugandans send their students to private secondary schools, so the students in
the government-funded schools tend to be highly impoverished. As a result of this
disparity, the students in the private schools perform much better on tests and are
able to take up most scholarships and governmental aid, leaving the poorer students
without a fighting chance. (Bunting)
c. Higher Education: Uganda has 2 major public universities, Makerere University
(the oldest university in East Africa) and Mbarara University of Science and
Technology. Between the two universities, about 25,000 students are enrolled. A
2000 UNESCO study found that about 35,000 Ugandans were enrolled in
postsecondary education. It takes about 3 years to earn a bachelors degree. The
larger universities have amenities such as extensive libraries, housing, and other
convenient features.
2. Literacy Rates
The literacy rate for male Ugandans between the ages of 15 and 24 is 88%. For
females in that age group, the literacy rate is 84% according to 2007 UNICEF data.
Xinghua News Agency reported in March 2005 that Uganda’s total literacy rate had
nearly doubled since 2000 data to 68%.
Implications: It is clear the Museveni and the Ugandan government are working towards
improving education availability and standards for their youth. In the Guardian, it was
written the Uganda is leading the way in education for Africa. This, along with an
increasing literacy rate, is promising because the more educated citizens in Uganda, the
more likely it is that average incomes will raise. More money in the hands of Ugandans
means more purchasing power for the necessity of clean water, provided by Potable Aqua
tablets.
C. Political System
8. 1. Political Structure
Uganda has a constitutional government with a president (Museveni, currently) and
parliament of 309 members. Both branches are elected by Ugandan citizens. A
presidential term is 5 years. The country held elections in 2006 and will hold their
next elections in 2011. The President is assisted by the Vice President, the Prime
Minister, and Cabinet Ministers.
2. Political Parties
According to the Columbia International Affairs Online site, the National Resistance
Movement (NRM), headed by Museveni, is the dominant political party and holds a
substantial majority of the parliament. The largest opposition party, though by no
means dominant, is the Forum for Democratic Change (FDC) which branched off
from the NRM. Relatively obscure are the Democratic Party and the Uganda People’s
Congress.
3. Stability of Government
UgandaInvest.com says that Museveni’s firm leadership has created high government
stability in Uganda. ―Uganda has transformed into a politically stable country with a
dynamic economy based on free market principles,‖ says the website. For 12 years,
Uganda has adhered to a constitutional government committed to growth under
Museveni, who has been re-elected twice by Ugandans.
4. Special Taxes
Taxes on imports in Uganda are regulated by the East African Community Customs
Management (EACCM) Act. The act does provide certain exemptions from customs
duties for imported health-related products that are approved by EACCM standards.
No tax treaties have been entered into between the US and Uganda. (USIG.org)
5. Role of Local Government
Uganda’s Ministry of Local Government website states that Uganda is divided into
many districts which are headed by lower Local Governments and Administrative
Unit Councils. Representing communities, minorities and special interest groups are
the Elected Local Government Councils. One-third of each of these councils is made
up of youth and female councils. These councils are powerful because they have both
legislative and executive powers to make local laws and enforce them. Administrative
Unit Councils are more involved in planning and organization of services, resolution
of disputes, and maintenance of law and order.
Implications: The implications are positive for the exportation of Potable Aqua tablets
into Uganda. It seems that the government has been focusing its efforts on organization,
stability, and growth. All of these factors will be beneficial to Potable Aqua. The
Ugandan government is eager to participate internationally in trade, and will probably do
its best to protect and defend American companies seeking to do business within Uganda.
Also, there is an opportunity to apply for special tax exemptions due to the beneficial
health qualities of Potable Aqua tablets.
Another implication is that Potable Aqua may be able to utilize the localized
infrastructure of the government to distribute purification tablets to rural areas. By
teaming up with the government to promote the health factors of Potable Aqua, new
distribution channels could open up.
9. D. Legal System
1. Organization of the judiciary system
The Ugandan judicial system is based on English common law, according to the
Encyclopedia of the Nations. The judiciary branch is independent of other
government branches. The lowest level is presided over by magistrates. Directly
above these magistrates is the chief magistrate’s court, which hears appeals from the
magistrate. At the top of the judicial system is the High Court, which hears appeals
and has complete criminal and civil jurisdiction. Heading the High Court is a chief
justice and a number of justices below him. There is a separate court to handle
military issues. (GlobalLex)
2. Common Law
As mentioned above, the English legal system and law are prominent in Uganda.
Their judiciary system is based on English Common Law, with a small amount of
African customary law that is in effect when it does not conflict with statutory law.
3. Participation in Patents, Trademarks, and Other Conventions
Uganda’s patent, design, and trademark registrations are through the African
Regional Industrial Property Organization for English-Speaking Africa (ARIPO).
ARIPO includes 18 African nations and is based on the Lukasa Agreement, which
established a common ground for adherence to regulations on the grounds of
increasing economic growth. Independent agents in Uganda commonly assist
companies in filing and maintaining the patents and trademarks under ARIPO. One of
the objectives of ARIPO is ―to establish such common services or organs as may be
necessary or desirable for the co-ordination, harmonization and development of the
industrial property activities affecting its members.‖ (ARIPO.org)
Implications: An independent judicial branch is a good sign that it would be less risky to
do business in a particular country. The fact that Uganda’s legal and judicial system is
based on English common law means that the environment will be organized in a similar
way to that of the US. Uganda also shows commitment to protecting patents, trademarks
and designs, which will make the country a safer place to promote a product as unique as
Potable Aqua.
E. Social Organizations
1. Group Behavior
Ugandans are communally minded, and groups are structured hierarchically. Women
and children are subordinate to men, and in very traditional groups the women will
often not make eye contact with males. Groups are usually structured around the
family clans. Clan loyalty is important. Ugandans bond by telling jokes – humor is a
huge part of Ugandan daily life and social interactions (Otiso)
2. Social Classes
There are no castes in Uganda, but social stratification is prominent. The majority of
the population lives below the poverty line. The top 10% of the population owns 1/3
of the available wealth, and the bottom 10% own just 3% of the wealth. The
wealthiest citizens mostly live in Kampala, the capital. Social stratification is based
largely on level of education and type of employment. While people is the lower
10. classes wear traditional garb, wealthier Ugandans like to dress in modern western
fashions. (www.EveryCulture.com)
3. Clubs and other organizations
Uganda’s clubs and societies are generally limited to urban areas, according to
AlloExpat.com. Many of the societies are cause-related, such as the club Nature
Uganda and the Historic Buildings Conservation Group of Uganda.
4. Race, Ethnicity and Subcultures
Ugandans are generally classified according to linguistic similarities. Most Ugandans
speak either Bantu or Nilotic dialects. Lake Kyoga is somewhat of a boundary
between these two groups. Bantu-speaking ethnicities include Eastern Lacustrine and
Western Lacustrine. Nilotic-speaking ethnicities include Iteso, Lango, Alcholi and
Karamojong. The Lugbara and the Madi are defined by their central Sudanic
languages. A handful of Pygmies live scattered in the Ugandan rainforests. Smaller
subcultures include the Asian and Indian populations of Uganda, and Muslim
Ugandans. (CountryStudies.us)
Implications: While featuring a variety of languages and tribes, Uganda is a relatively
unified country because the citizens speak English and adhere to a constitutional
government rather than individual tribal laws. This is important for the marketing of
Potable Aqua. It will be easier to promote a product universally to this relatively
homogeneous country.
F. Business Customs and Practices
Dressing well is highly valued in the business world of Uganda. Men wear suits in
urban areas, and in rural areas it is acceptable to wear slacks and a nice shirt with a
collar. For women, dress is conservative. In urban areas, women should wear a suit
that is not too close-fitting. In rural areas, it’s more appropriate for women to wear a
long skirt. Interestingly, well-kept shoes are a sign of status. Businesspeople look
down upon people with worn-looking shoes.
Titles are very important. It is best to always address adults using Mr., Mrs., or Miss.
Also, it is common to refer to people using their title, such as Mr. Vice President.
First names are reserved for close friends and family and should not be used during
business.
Business cards so not a have specific protocol, but it is best to treat them with respect.
Punctuality is valued more highly in business settings than in daily Ugandan life.
Higher-status Ugandans are generally more punctual. Shaking hands is an appropriate
business greeting, but one should always use his or her right hand. Personal space is
minimal, and holding hands with someone of the same gender is common.
(www.businessculture.com/uganda.html)
11. V. Religion and Aesthetics
A. Religion and other belief systems
1. Orthodox doctrines and structures
An estimated 66% of the Ugandan population is Christian, divided between
Protestants and Roman Catholics. About 15% of Ugandans are Muslim, and the
remaining 19% believe in local religions or have no religious affiliation. Christianity
is viewed somewhat differently in Uganda, as the importance of the afterlife is
deemphasized. (CountryStudies.us)
2. Relationship with the people
Church proliferation and membership has been beneficial to the Ugandan economy
because they sometimes provide more opportunities for education for adults and
children, employment, and social advancement. (CountryStudies.us)
3. Which religions are prominent?
As mentioned above, Christianity is the most prominent religion. The Muslim
religion is the second largest, which gained prominence as East Africans assimilated
to trade goods in Uganda. (CountryStudies.us)
4. Membership of each religion
Christianity: 4 million Ugandans
Islam: 2.6 million Ugandans
Remainder: Local religions or no religious affiliation
5. Influential cults
In March 2000, members of the Movement for the Restoration of the Ten
Commandments murdered 5 people and conducted a mass suicide which killed 330
people, including 78 children. (BBC News)
The Lord’s Resistance Army is the most powerful cult in Uganda, and has
connections to the Movement for the Restoration of the Ten Commandments. The
cult kidnaps young boys and girls to use as soldiers and sex slaves. Adults are
maimed and massacred. The LRA says that they are fighting for a government based
on the Ten Commandments. (GlobalSecurity.org)
B. Aesthetics
1. Visual Arts
Ugandan women spend painstaking hours crafting beautiful mats, table spreads, and
baskets. Beading elaborate designs on clothing is also a popular art form in Uganda.
Some tribes traditionally create elaborate wall paintings, while others prefer to make
complex headdresses or paint their bodies in vibrant colors. Some Ugandan
universities even offer a fine arts degree, which is uncommon in East African nations.
(PanafricanArtists.org)
2. Music
Ugandans listen to a broad variety of music. Guitar and drum ensembles are very
popular because it is easy to incorporate ancient tribal rhythms into this kind of
modern music. Gosper music is also gaining popularity in Uganda. Dancing and
12. music are so closely intertwined that the word ―ngoma‖ means both activities.
(Uganda National Culture Policy)
3. Performing Arts
Performing arts are very important to Ugandans for self-expression, education, and
entertainment. Communities use performed stories to educate audiences about their
heritage. These performances also help to bind communities together more tightly.
Though limited, the increasing popularity of performing arts has helped create jobs
for Ugandans. (Uganda National Culture Policy)
4. Folklore and relevant symbols
Folklore is usually specific to ethnicities because they are communicated through
lines of common languages. Many folklore stories consist of creation legends and
address the questions of how humans came to exist and what happens when they exist
no more. A common symbol in Ugandan folklore is the Trickster. The trickster, often
a fox or other doglike animal, serves to unwind carefully laid plans and wreak havoc.
The Trickster stories usually highlight human perseverance against unlucky odds.
(www.Sacred-Texts.com)
Implications: There are no obvious implications
VI. Living Conditions
A. Diet and Nutrition
1. Meat and vegetable consumption rates
While this data is unavailable for Uganda, a report from the Food and Agriculture
Organization of the United Nations stated that 55% of Ugandan food consumption is
non-starchy foods.
2. Typical meals
Ugandans typically eat two meals a day, lunch and dinner. Breakfast is usually a cup
of tea, or porridge. Common meals include millet bread, sweet potatoes, and chicken
or beef stews. (www.EveryCulture.com)
3. Malnutrition rates
The Food and Agriculture Organization of the United Nations report said that as of
2003, 19% or 4.6 million Ugandans were malnourished. Thankfully, this figure has
declined from 26% in 1997 data.
4. Foods available
Ugandans typically raise their own animals for meat and grow their own vegetables.
Foods available include chicken, beef, eggs, goat meat, goat and cow milk, bananas,
sweet potatoes, yams, corn, cabbage, pumpkins, beans, and peanuts.
(www.EveryCulture.com)
Implications: While the malnutrition rate in Uganda is still almost 20%, it does
appear to be declining. This means that the population is getting better at proving
their own basic needs. One of these needs is pure water. Ugandans are increasingly in
a better position to purchase Potable Aqua tablets.
B. Housing
1. Types of housing available
13. Most Ugandans live in thatched huts with mud walls. The government-supported
National Construction and Housing Corp. has developed a ―growing house,‖ which is
a one-room home that is ready to move into, but easily expandable.
2. Do most people own or rent?
Most rural Ugandans build huts upon communally owned clan property. In urban
populations where seasonal workers are common, renting apartments is more
prevalent. Uganda’s very small upper and middle classes mean that home ownership
is not more common than renting. (www.EveryCulture.com)
3. One-family dwellings or with other families?
Ugandans typically live in one-family huts. However, these families are extremely
large because they consist of several children and often multiple wives. The shacks
often have a room connected in which the family’s livestock stays at night.
Implications: There are no obvious implications
C. Clothing
1. National dress
Busuti or Gomasi (colorful saris). Kanzu is the national clothing of men in Uganda.
Safari suits are also common Ugandan attire. School uniforms are the norm for
children who attend school.
2. Types of clothes worn at work
As mentioned above, dressing well is highly valued in the business world of Uganda.
Men wear suits in urban areas, and in rural areas it is acceptable to wear slacks and a
nice shirt with a collar. For women, dress is conservative. In urban areas, women
should wear a suit that is not too close-fitting. In rural areas, it’s more appropriate for
women to wear a long skirt. (www.businessculture.com/uganda.html)
Implications: There are no obvious implications
D. Recreation, Sports and Leisure Activities
1. Types available and in demand
Soccer is an extremely popular sport in Uganda. Kampala holds one of the largest
soccer stadiums in the world, and millions of Ugandans support their favorite soccer
teams (Brittanica.com). Recreation is usually what Ugandans can do with little
resources, such as ball games. Rugby is also very popular. (AfricaProfile)
2. Percentage of income spent on such activities
No information was available for this category
Implications: Due to the universal popularity of soccer in Uganda, there is a good
opportunity for marketing based on the sport. Using popular sports figures in graphic
advertisements would also overcome the obstacle of illiteracy.
E. Social Security
Uganda’s social security is provided by National Social Security Fund (NSSF) since
1985. It is a compulsory savings program for Uganda’s qualifying employees. The
14. NSSF invests heavily in a portfolio designed to help stimulate the Ugandan economy
while providing good returns to pay for benefits.
Implications: Once more, the existence of a stable social security system enforced by
the government shows that Uganda is moving in the right direction towards becoming
a more prosperous nation. This of course implies that Potable Aqua tablets will
become increasingly affordable to more Ugandans.
F. Health Care
Only 49% of Ugandan households have access to health care. This is largely due to
poor infrastructure in rural areas of the country. Uganda has developed a Health
Sector Strategic Plan to try to improve this statistic. The basis of the plan is to use the
political structure to be able to provide at least some healthcare facilities to rural areas
through local government branches. (WHO/AFRO)
Implications: There are no obvious implications for our product
VII. Language
A. Official Language
English is the official language of Uganda. This principle has its roots in
Uganda’s history as a British colony.
B. Spoken versus written languages
Most Ugandans speak and write in English. Within clans, Ugandans sometimes
speak in the languages with which they are familiar (there are 45 languages listed
for Uganda). (Ethnologue.com)
15. VIII. Sources of Information
www.PotableAqua.com
www.ExperienceAfrica.co.uk
www.HistoryWorld.net
https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html
www.historyworld.net/wrldhis/plaintexthistories.asp?historyid=ad22
http://www.southtravels.com/africa/uganda/weather.html
Ingoldsby, Bron. "Families in Global and Multicultural Perspective," 2005
Otiso, Kefa. ―Culture and Customs of Uganda,‖ 2006
Asthana, Anushka. ―Background: Education in Uganda.‖ The Guardian, March 6 2008
Bunting, Madeline. ―Debate: The State of Education in Uganda.‖ The Guardian, May 23
2008
http://www.unicef.org/infobycountry/uganda
http://www.highbeam.com/doc/1P2-15904978.html (Xinghua New Agency, March 2005)
USIG.org (United States International Grantmaking)
http://www.molg.go.ug/local_govts/local_gov_system.htm (Ugandan Ministry of Local
Government)
http://www.nationsencyclopedia.com/Africa/Uganda-JUDICIAL-SYSTEM.html
(Encyclopedia of the Nations)
http://www.law.nyu.edu/global/researchtools/globalex/index.htm (GlobaLex)
http://www.aripo.org/index.php?option=com_content&view=article&id=19&Itemid=53
(ARIPO)
http://www.everyculture.com/To-Z/Uganda.html
http://www.alloexpat.com/uganda_expat_forum/clubs-societies-in-uganda-uganda-
association-guide-t632.html
17. Executive summary
Population
After being able to study the population of Uganda and its distribution across the country,
we do see that there are several areas in which we would be able to take advantage of.
We do understand that if Uganda is going to continue to grow as they have been that safe
drinking water is vital. They are already fighting the battle against AIDS, harmful water
is a battle we believe we can help overcome. Upon looking at the population as a whole,
we also believe that we want to primarily focus on getting our product into the age group
0-14.
The 0-14 year old group is our base but the 15-64 year old group is our source. We
understand that 0-14 year olds would not be able to purchase our product given the fact
that ―legal‖ labor doesn’t start until 18. We will gear our ads to the groups who are more
financially stable and able to purchase our product. Our product throughout the ads will
show the positive effect of the product, whether is the fact that these tablets remove
diseases or provides overall health. We will also keep in on consumer affective feelings.
We want them to feel and see our product not as a want but as a need. Another thing we
will need to do when marketing to this group is allow the 15-64 year old group to
understand that the younger group needs them, and if they are dying from water bone
disease that they are taking a vital part of their kids life out of them. The marketing
strategy may seem simple but it is far from it.
Economic Statistics and activities
Uganda has been able to show that their total market value can increase even in scarce
areas and when fighting against many different diseases. Uganda is also ranked relatively
high on the list where countries rank in the world. They rank 58th out of 228 where the
US a far more developed country ranks 22nd. Their per capita income has held steady for
the past three years at $1,100. We do believe that most consumer will be able afford our
product, but we still see fit that for starters that we make it cost friendly for all
consumers.
Extent of economic activity not included in cash income activities
Uganda is still very dependent on foreign aid. As their relationship with the US is a good
one, this will positively influence our business with them. Their need for foreign aid can
perhaps call for discounts and generally make it easier for our business to thrive there.
Trade Restrictions
The main restriction or taxation that we will encounter in doing business in Uganda is the
18% value added tax. Depending on how they see our product, as a regular dry good or a
medical good, will determine if this tax applies to us. It will be very important in
verifying what they view our product as. Our connections through the WTO will greatly
benefit our business and make it exponentially easier to export to Uganda. Because of
this, there appears to be no major obstructions in getting successfully and efficiently
getting our product to market.
18. Transportation and Communication
Transportation is key, after all we need to be able to get our product into Uganda safely.
2008 Dun & Bradstreet explains that the majority of trade and shipment into Uganda is
done through the port of Mombasa, Kenya and Dar es Salaam, Tanzania via railways to
Lake Victoria and then finally ferried to Uganda. We have also looked into cheaper ways
in enter Uganda via ports and trade centers, where transportation are lower.
With keeping cost at a minimum we will prefer to distribute our product using waterways
and attempt to have retailers close to waterways. For those consumers who cannot be
reached by waterways, we will have to take our product to them in their area. There some
roads that are paved but the majority of them are not. We must also be sure to move our
product in mass amounts before the rainier seasons, given that unpaved roads in rain will
be harder to overcome. One of our biggest concerns we will face with moving the
product via truck on land directly is bandit activity. It has been proven that with Uganda
being a corrupt society that driver and product safety is a must. We will need to be
prepared to have some form of collateral available it a violent takeover would to happen.
The majority of these attack ended violently only when the victims resist.
We will be advertising and communicating our product to consumers through news
papers, radios and televisions ads and the sides of busses. We believe that this will be a
good base given most have access to these different types of communication devices. It
would also be beneficial that we connect with the Uganda government to partnership in
using the TV and radio given that the government controls the major TV and radio
networks. The final communication area we would take advantage of is online. Although
they are working on securing the cyber connection for Ugandans we feel that to start off
the internet would not be cost efficient. If and when we do go online we would you that
as a testimonials website and a way for consumer to learn more about the product itself.
Working Conditions
Being that the Ugandan work week is set at 48 hours, there is room for ample business to
be conducted on a week to week basis. The main problem will arise in making sure there
is agreement and unity within employees so that our product moves as efficient as
possible across the market. We can address this issue by insuring job security and
monetary stability to the best of our abilities.
Uganda's main problem for further development is a poorly established economy which,
can be built by essential steps. Science and technology is an important aspect in building
a strong economy. With new advances in science and technology a better standard of
living will occur which will in turn, result in a higher development of education.
Although, there is one main source where it all begins and this is water. Water is a
crucial element and therefore, the need for clean drinking water in Uganda must be
implemented. With Potable Aqua consumers with questionable water can use these
tablets to ensure clean drinking water. If wholesalers in Uganda sold Potable Aqua to
retailers and other businesses consumers would be able to have temporary clean drinking
water. Through the media we can educate Ugandans about Potable Aqua and eventually
ensure that enough consumers have access to these tablets.
19.
20. Economic Analysis
I. Introduction
Uganda is one of the world’s poorest countries and depends heavily on
foreign aid. Over the past years Uganda has shown strength in reducing
AIDS cases and poverty, while at the same time they have held steady
growth. Agriculture is the biggest sector in Uganda it employees between
70 and 80 percent of the workforce. Uganda has also been able to benefit
with many of its exports. It is also important to understand that, ―Uganda
spends close to $10 million each year treating waterborne diseases.‖ The
Uganda governments has already made attempts in providing safe water,
but are finding that the amount spent each year is having a greater
financial impact. There is roughly 52 percent who do not have safe
drinking water.
II. Population
A. Total
1. Even though Uganda fights the battle against AIDS they still
have had a steady growth in population from 2003 through 2008.
There most recent numbers show that Uganda as grown from
31,392,654 in 2007 to 32,369,558 in 2008. With their high
numbers Uganda is ranked 58th out of 228 in world ranking for
population where the US is ranked 22nd.
2. Number of live births = 1,484.7
3. Birthrates
i. In order for Uganda to keep their steady population growth
they average 48.15 births per 1000 population. This carries
a death rate if 12.32 deaths per 1000 population. The 2009
estimate from
https://www.cia.gov/library/publications/the-world-
factbook/print/ug.html
Implications: With us able to take our product to Uganda we will be able to provide the
Uganda government one less thing to worry about. We can sure up the concern with
unhealthy drinking water and allow the Uganda government to focus on their AIDS
prevention.
B. Distribution of population
1. Age – https://www.cia.gov/library/publications/the-world-
factbook/print/ug.html breaks down the 2009 estimate of age
distribution across Uganda as follows
i. 0-14 years: 50% (male 8,152,830/female 8,034,366)
ii. 15-64 years: 47.9% (male 7,789,209/female 7,703,143)
iii. 65 years and over: 2.1% (male 286,693/female 403,317)
iv. The average age in the population in Uganda is 19.5 years
and has been held steady at that age since 2003. A further
breakdown of male vs. female average age is below.
21. a. Male average age 19.2 years
b. Female average age is 19.8 years
v. Life expectancy is also key, the average life span for males
is 51.66 years and women 53.81. Thus showing that
females still tend to live longer than men on average.
Implications: Based off the age distribution I also believe that our product would be best
served in the 0-14 year old group. Our belief is start them young allow them to be use to
using the product and that will then trickle down and follow them as the age themselves.
2. Sex
i. Male as of 2008 take up 50.1% while females take up
49.9%.
3. Geographic
i. https://www.cia.gov/library/publications/the-world-
factbook/print/ug.html states that the majority of Uganda is
landlocked meaning primarily surrounded by all land.
Uganda is also fertile, and a well-watered country with
many lakes and rivers
ii. Predominately rural
4. Migration rates and patterns
i. Uganda’s migration rate is -8.83 per 1000 population.
5. Ethnic groups
i. The 2002 census shows the breakdown of ethnic groups as:
Ethnic Groups
Baganda
Other 17%
30%
Banyakole
9%
Basoga
8%
Bunyoro
3%
Lugbara Bagisu Bakiga
4% 5% Acholi 7%
Langi Iteso
5% 6% 6%
22. III. Economic Statistics and activities
A. Gross National Product
i. Given that Uganda has had a steady increase in population,
they have also had a steady Gross Domestic Product
(GDP). In 2007 their GDP was 20,953,000 million in
Uganda shilling (12,177 million US dollars), that grew to
24,697,082 million in Uganda shilling (14,353 million ins
US dollars) in 2008.
ii. The breakdown of Uganda’s GDP is as follows;
a. Agriculture 29%
b. Industry 24.8 %
c. Services 46.2 %
2. Rate of growth (real GNP or GDP)
Rate of Growth
12
10.8
10 9.8
8 7.9
6.8
6 6.3
Rate of Growth
4
2
0
2004 2005 2006 2007 2008
Implications: Uganda has been able to continue to grow as the GDP figures show while
at the same time fighting the battle of AIDS. This shows that this is an economy that can
grow at scare times. Our company will be able to see that if we have help one sector that
this economy can flourish even more providing us with a larger return.
B. Personal income per capita
1. For the last three years the per capita in Uganda has remained
steady at $1,100 or 2,348,700 Uganda shilling.
Implications: We believe that Ugandans will be able to afford our product, and once
attached began repeat purchases.
C. Average family income
1. The average family income in Uganda is $320
23. Implications: There are no obvious implications for exporting and marketing our product
related to the research findings in this section.
D. Distribution of wealth
1. Income classes
i. After research and communication with Sarah Naper we
were unable to find any data about the average family
income. Although I do believe that there is some class
system given the amount of those above the poverty line.
2. Proportion of the population in each class
i. 2001 about 35% of the population is below poverty line
3. Is the distribution distorted?
i. There was no data supporting either way. Although articles
do show that only 35% are below poverty line, I do believe
that the rest are either middle or lower class.
Implications: There are no obvious implications for exporting and marketing our product
related to the research findings in this section.
E. Minerals and resources
1. Copper, cobalt, hydropower, limestone, salt, arable land
(http://www.infoplease.com/ipa/A0108066.html)
Implications: There are no obvious implications for exporting and marketing our product
related to the research findings in this section.
F. Surface transportation according to
https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html
1. Modes
i. Airports
a. New solar power Ssesamairembe International
Solar Airport (SISA)
i. 5 total pave runways
ii. 27 total unpaved runways
b. Entebbe (airport)
i. International airport
ii. Railways
a. All railroads total to 1,244km long or 772.99 miles
b. Less the 10 percent of domestic freight and 30
percent of external freights
iii. Roadways
a. The roadways total to 70,746km or 43,959.53 miles
i. Paved 16,272km or 10,110.95 miles
ii. Unpaved 54,474km or 33,848.57 miles
b. Roadways are not easily accessible during rainy
conditions.
iv. Waterways
a. Cheapest mode in transporting passengers and
cargo.
i. Lake Victoria,
24. ii. Lake Albert
iii. Lake Kuoga
iv. Albert Nile
2. Availability
i. Easily available to most Ugandans
3. Usage Rates (unable to find information)
4. Ports
i. Locations
a. Lake Victoria
b. Entebbe
c. Jinja
d. Port Bell
e. Malaba
i. Dry port
Implications: There are major implications in this section. We must be aware of all
option in getting our product to Uganda as well as what transportation methods needed
once in Uganda. We will need to make sure we have the right type of vehicles and
security. Understanding all options will allow us to be able to make sure that all areas can
be reached when getting consumers our product.
G. Communications systems according to
https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html
1. Types
i. Telephone systems
a. Domestic
i. Intercity traffic by wire
ii. Microwave radio relay
iii. Radio telephone communication stations
iv. Mobile cellular systems
b. International
i. Satellites earth stations
ii. Intelsat in the Atlantic ocean
iii. Inmarsat (analog links to Kenya and
Tanzania)
ii. Radio broadcast systems
a. 7 AM and 33 FM channels and 1 shortwave channel
b. The government controls dominates the media with
―Radio Uganda‖
iii. Television broadcast stations
a. 8 television stations and an additional repeater
station
b. Government controlled.
i. Exporters’ Encyclopedia 2008/2009 By
D&B explains that with the increase in
demand with televisions and radios that
Uganda government decided to merge the
25. two forming the Uganda Broadcasting
Corporation.
iv. News papers
a. New Vision
i. 35,00 in circulation
ii. Up to 10 readers per news paper.
v. Mail
a. Restrictions consist of coins, banknotes, currency
notes (paper money), gold, silver
vi. Computers
a. Even with Uganda being a rural area they still have
computers available to them.
b. Few companies sell their products online.
c. Government is setting up E-Commerce laws to
protect users from cyber crime.
2. Availability
i. Personal computers in use is 294,400
ii. 100,000 available telephone main lines
iii. Mobile telephone subscriptions are 380,000
iv. Only 4.195 million people in Uganda have access to the
above communication devices. Out of 32,369,588 million it
shows that roughly 12.95% of the population has access to
these types of communication. Given that information I
believe that the percentages of people that have access are
in the higher income brackets and in the more developed
areas.
3. Usage rates
i. Internet usage is roughly 1.8 million
ii. Telephone usage is around 200,000
iii. 5 million radios
Implications: The major implications here are making sure that we understand that not
everyone has access to all device of communication. We also want to use the device that
the majority of the consumer have. One thing we did gather is that in some areas word of
mouth is going to be very important as we may not be able to communicate directly to
some consumers.
H. Working conditions:
1. Employer-employee relations: (http://www.ia-
uganda.com/doing_business_in_uganda.html#investment2)
a. The work week is set at 48 hours, anything exceeding
that is considered overtime.
b. Typically, employment of women is prohibited.
c. Statutory benefits and protection applicable to workers
are currently provided principally by nine legislative
acts.
26. 2. Employee participation: Although they have the resources and
ability to form trade unions, they are very rarely used as there
is a lack of unity amongst workers.
(http://www.nationsencyclopedia.com/economies/Africa/Ugan
da-WORKING-CONDITIONS.html)
3. Salaries and benefits:
i. A social security fund exists; Employers contribute 10% of
the wages/salaries and employees pay 5% into it.
Implications: Taking into consideration how Ugandans are used to working is key. We
must conform our business tactics to provide them an experience that does not seem
foreign at all.
I. Principal industries:
1. What proportion of the GNP does each industry contribute?
% of GNP
13%
5%
Agriculture
82% Industry
Services
2. Ratio of private to publicly owned industries
% of GDP
1998/99 2005/06
Gross capital formation 19.4 23.3
Public 6.2 4.9
Private 13.2 18.5
Consumption 92.3 91.9
Public 13.3 14.7
Private 79.0 77.3
(Source: African Economic Outlook)
Implications: There are no obvious implications for exporting and marketing our product
related to the research findings in this section.
J. Foreign investment:
1. Opportunities:
i. The Uganda Investment Authority (UIA) provides
assistance and advice in registering for foreign investment.
27. 2. Which industries:
i. Major companies with foreign investment in Uganda in
2005 included Coca-Cola, Caltex, Sheraton, Starcom,
Citibank, Xerox, Cargill, AES, Colgate Palmolive, Swift
Global, IBM, HP, GM, and Ford.
(http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gal
e=prefix=wen_0012_0002_0_=startPage=01175=suffix=-
p=npages=15.pdf)
Implications: A bulk percentage of foreign investment comes from the United Kingdom.
While this may not affect us directly, it still shows a favorable view of the west and
means with all things constant, we should have no issues investing in Uganda.
K. International trade statistics:
1. Major exports: Major exports consist of coffee, fish and fish
products, tea, cotton, flowers, horticultural products; gold
i. Dollar value: $2.03 billion f.o.b. (2008 est.)
ii. Trends: Major exports have appeared to grow substantially
from $768 million f.o.b. in 2005
(http://www.infoplease.com/ipa/A0108066.html)
2. Major imports:
i. Major imports for 2005 consisted of mostly machinery
equipment, iron, steel, vehicles and accessories, chemicals,
medical supplies, petroleum, and animal fats.
(http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gal
e=prefix=wen_0012_0002_0_=startPage=01175=suffix=-
p=npages=15.pdf)
ii. Dollar value: $3.579 billion f.o.b. (2008 est.)
3. Balance-of-payments situation:
i. As of 2006 the overall balance of payments is at a
$332,000,000 surplus.
ii. Recent trends: Up until the 1930’s, Uganda showed a
favorable surplus, though trade deficits grew with newly
independent Kenya and Tanzania and poor trade has led it
to grow more. Refer to the following chart for the balance-
of-payments trends for 2004-2006.
28. Overall Balance of Payments (US $ Million)
400
300
200
Overall Balance (US $ Million)
100
0
2004 2005 2006
Implications: As long as Uganda’s surplus remains steady or even rises, we should have
no concerns about exporting our product.
4. Exchange rates
i. The Ugandan Shilling has multiple exchange rates; they
can be seen as follows.
ii. Current rates of exchange of Ugandan Shilling
i. vs. U.S. Dollar: 1,720.7
ii. vs. ECU/Euro: 2,490.9
iii. vs. Japan Yen: 16.6
iv. vs. Swiss Fanc: 1,594.3
v. vs. Pound Sterling: 3,150.9
iii. Trends:
Uganda Shilling Buying Rate vs. US $
2195
2190
2185
2180
2175 Uganda Shilling Buying Rate
2170 vs. US $
2165
2160
2155
23-Apr 24-Apr 25-Apr 26-Apr 27-Apr
(http://www.bou.or.ug/bouwebsite/opencms/bou/collateral/
exchange_rates.html)
Implications: We want to keep an eye on the exchange rate between the Uganda Shilling
and US Dollar. If the Shilling value is to take a significant decrease vs. the US dollar
they are likely to consider buying less of our product.
L. Trade restrictions
29. 1. Embargoes
i. Uganda adheres to the UN Arms embargo which regulates
exporting firearms.
2. Quotas:
i. After research and search help from UNC librarian Sarah
Naper, there appears to be no trade quotas between the US
and Uganda.
3. Import taxes
i. An 18% Value Added Tax is added to imported goods
except for milk, seeds, fertilizers, drugs, and medicine are
zero rated. Foodstuff, insurance, education, medical and
financial services are exempt. (Exporters’ Encyclopedia)
4. Tariffs
i. As a member of the WTO, all imports are subject to
normal taxation. Uganda is also a member of COMESA
(Common Market for Eastern and Southern Africa ) which
provides free trade among members. A third trade group,
the EAC (East African Community), signed a Customs
Union Agreement in which provides an asymmetrical
reduction of internal tariffs within the group. (Exporters’
Encyclopedia)
5. Licensing
i. For all basic goods not on the negative list (a list of banned
or highly regulated goods) the importer must simply fill
out an import registration form.
6. Customs duties
i. Uganda adheres to the WTO Customs Valuation Code,
which ensures fair, neutral determination of value.
(Exporters’ Encyclopedia
Implications: The statuses of any trade restrictions are vital to exporting Potable Aqua.
Being a member of the WTO insures that we should have no unforeseen problems in the
way of hidden tariffs or taxes.
M. Extent of economic activity not included in cash income activities
1. Countertrades
i. Products generally offered for countertrading
i. Cotton or coffee is typically the main commodity
used in countertrade.
ii. Types of countertrades requested (i.e., barter,
counterpurchase, ect.)
i. During the late 1980’s, Uganda’s countertrade grew
significantly, with an estimated 70 barter deals
30. valued at US$534 million within four years.
Typically they requested petroleum products and
technical advice.
(http://www.photius.com/countries/uganda/econom
y/uganda_economy_foreign_trade.html)
2. Foreign aid received
i. Approximately 55% of government spending in 1998 was
from foreign aid. Because of the fact that Uganda is still
one of the poorest nations in the world, they are heavily
dependent on foreign aid. In 2003, foreign aid receipts
totaled $959 million or about $38 per capita and accounted
for approximately 15.6% of the GNI.
(http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gal
e=prefix=wen_0012_0002_0_=startPage=01175=suffix=-
p=npages=15.pdf)
Implications: There are no direct implications for countertrade as our product is not
typically something that would be sought after in barter or countertrade. As far as foreign
aid, it is in Uganda’s best interest to remain a viable business partner to the west and that
would imply keeping up business with our company. This works in our favor.
N. Labor force
1. Size: 14.02 Million The Uganda labor force is estimated to be
around 14.02 million, as opposed to 153.1 million for the US
(www.cia.gov)
2. Unemployment rate: 3.6 (2003)
O. Inflation rates: 10.5% (2008 est.)
Implications: The Uganda unemployment rate is in fact somewhat below the US. But
because of the sheer amount of poverty across the nation, finding a viable workforce
should not be too difficult. The vast majority of Uganda’s workforce belongs to the
agricultural industry, which would be an excellent target market for our product.
IV. Developments in science and technology
A. Developments of science and technology are increasing at a slow rate.
Currently Uganda has telephones, cellular telephones, computers, internet,
vehicles, railways, highways and airports. According to recent research
done by caliistro, Uganda has a medical association, a child malnutrition
unit, an agriculture research institute, a forestry research center, and a
cotton research station in the city, Kampala. An animal health research
center and the Geological survey and Mines Department are in Entebbe.
There is also the Makerere University which has faculties of science,
agriculture and forestry, technology, medicine, and veterinary science.
Internet and computer technology are making their way into Uganda.
―There are more than 6,000 privately owned computers and the numbers
are growing rapidly.‖
<ahref="http://education.stateuniversity.com/pages/1585/Uganda-
EDUCATIONAL-SYSTEM-OVERVIEW.html">Uganda - Educational
31. System—overview</a> This technology will eventually find its way into
primary and secondary schools.
B. Percentage of GNP invested in research and development was .6% of GNP
in 1987-1997. If Uganda increased its investments into scientific research
to 2% of its Gross National Product (GNP), this would amount to an
estimated $100 million. Although this is noticeably less than investments
made in other countries it would in the long run, create and raise home-
grown research which would benefit Uganda to further their economic
growth and to improve living conditions. Uganda has been affected by
corruption in numerous ways mainly affecting the way money is allocated
throughout the country. Raising the GNP spent on research and
development would create a stable environment for Uganda.
C. In 2007 it was estimated that there was 14 .02 million in the Labor force.
Uganda’s labor force is divided into three main sections which include
82% Agriculture, 13% services and the 5% from the industry.
Technological development among the population and labor force has
increased at a steady rate. Telephones are Uganda’s main source of
communication while cellular phones and internet are slowly becoming
more prevalent.
http://globaledge.msu.edu/countryInsights/statistics.asp?countryID=148&r
egionID=5
Implications: The development of science and technology is crucial for a well developed
economy and living environment. It is important for Uganda to spend more of their GNP
on science and technology to establish a well developed economy. Not only will Uganda
benefit but so will our product. If Potable Aqua becomes well known throughout Uganda
there will be a good chance that we can further develop the product through science and
technology and eventually create a clean water reserve for Uganda. Introducing Potable
Aqua to Uganda will benefit its inhabitant in numerous ways. Many of the diseases that
are prevalent today in Uganda are caused by infected water. If we can eliminate these
viruses temporarily in drinking water it will give us enough time to develop a system that
provides clean drinking water to the population. Inevitability this will decrease the
amount of deaths occurred through water borne diseases.
V. Channels of Distribution
A. Retailers:
1. There are 25,000 businesses in Uganda which has increased 60% since
2001. Of these 25,000 businesses there are approximately 2,501 retail
businesses in Uganda (Uganda Bureau of Statistics).
2. ―Most retail trade is accomplished through small shops supplied by
small distributors.‖(Callisto) Retail Sale in Non Specialized Stores had the
highest number of employees (3,526) accounting for 20 percent of total
employment in the sub sector followed by businesses undertaking Retail
Sale in Specialized Stores with 18 percent of total employment. (Uganda
Bureau of Statistics). The retail outlets throughout Uganda are fairly small
in size and typically are no larger than. The main businesses are located in
32. the city Kampala which composes 45% of these businesses. The Northern
region of Uganda had the highest increase of business since 2001.
3. The customary markup for various classes of goods varies diversely
because of the wide range of grey trade.
4. There are numerous Forex Bureaux and International Banks in the
capital city - Kampala and the main towns. It is highly suggested to carry
cash- shilling because credit cards are not widely accepted. There are
ATM machines that can cash some credit cards. Most of methods of
operation in Uganda are processed by cash transactions because many do
not have access to credit.
5. Small scale of operations
6. There are many small retailers in Uganda that sell necessary consumer
goods but very little if any department stores. There are more specialty
shops than chain stores and department stores in Uganda.
Implications: Due to the size of the retailers in Uganda it will be difficult to target these
specific individual retailers. It would be most effective if we could sell our products to
specific Ugandan businesses such as wholesalers so that we could distribute our product
to the local markets.
B. Wholesale middlemen
1. Many imported consumer products in Uganda are smuggled into downtown
Kampala but generally products are distributed through regional wholesalers, who
in turn supply small and rural shopkeepers. Waiting transporters buy bulk
quantities of merchandise straight from the containers and immediately carry their
shipments to smaller towns and villages.
2. The customary markup in Uganda varies since some products are counterfeit and
there is a lot of black and grey trade.
3. Most of these transactions are done with cash. ―Businessmen report that customs
duties are not always collected, especially if a bribe is offered to Uganda Revenue
Authority officer on site.‖(Commercial guide) Suppliers deal directly with major
purchasers because of the entry of large South African retailers.
Implications: It will be important to find wholesale middlemen to distribute our product
to small and rural shopkeepers. Once Potable Aqua is exported from the United States
there will have to be an appropriate wholesaler to sell the product in bulk to transporters
who will eventually resell the product. This will be the most effective means of business
because otherwise it would be difficult to find local shopkeepers who will individually
buy the product. With local wholesale middlemen we can sell our product directly and
have them target their specific markets.
C. Import/Export Agent
1. Many U.S. firms have invested directly in Uganda. Typically, American
businesses looking to access the Uganda market enter into contractual agreements
with distributors and local agents. ―The Uganda Investment Authority (UIA) and
the Uganda Manufacturers Association (UMA) maintain resource centers and
often field inquiries from agents, distributors or companies looking for outside
partners. The Ugandan National Chamber of Commerce and Industry (UNCCI)
may also assist with identifying local agents and distributors.‖ There is a list of
33. export firms and agents in the Uganda Export Promotion Board (UEPB) that will
be beneficial to when choosing the appropriate export firm and agents. However,
it would be sensible to visit Uganda to interview candidates and survey the
situation before choosing an agent or distribution and sales channels distributor.
Implications: In our situation it will be important to find a local agent to distribute our
product. However, as stated in the aforementioned paragraph it will be beneficial to
interview candidates and survey the situation before choosing the appropriate agent or
distributor and sales channels distributor.
D. Warehousing
1. Warehousing standards and regulations have been adopted. ―The Warehouse
Receipt System (WRS) Act (no. 14) of 2006 provided for regulatory system for
the licensing of warehouse and the issue of warehouse receipts in Uganda.‖
(Uganda Commodity Exchange) ―Goods entered for domestic consumption
remaining in any warehouse more than 14 days may be confiscated to the
government or destroyed although, this is rarely implemented.‖(Dun &
Bradstreet) Warehousing is also subject to rent and other charges. The
development of warehousing under the new act will create a wide variety of
warehousing options to emerge.
Implications: Warehousing may be beneficial in our situation since unopened bottles of
Potable Aqua tablets, when maintained under controlled temperatures between 60 and 86
degrees F (15 to 30 degrees C), should remain effective up to four years. So if we ship a
copious amount of our product out in one time rather than small shipments we will spend
less money in the long run for exporting fees. Thereafter, transporters can buy bulk
quantities from the wholesalers and sell the product to small and rural shop keepers.
E. Penetration of Urban and Rural Markets
1. Many Ugandan markets are not well developed. Therefore, foreign firms should
visit Uganda to conduct extensive research and ground work before penetrating
Urban and rural markets. There are many promising opportunities for well-
prepared firms in the right sectors, despite the many challenges Uganda presents.
Throughout recent years cellular telephones and computers are becoming more
popular although, Uganda currently does not present strong opportunities for
telephone or Internet marketing.
There are many Ugandans who do not actively have access to the internet or
utilize mail services other than in a few urban areas. Most foreign products are
marketed through an experienced local company.
Implications: Before our product penetrates the urban and rural markets there will have
to be a considerable amount of research done to ensure that our product will survive.
Potable Aqua presents a wide range of markets bearing in mind its low cost and
beneficial use throughout Uganda. Even though there is a good market for our product
we will still have to ensure that we can find the right retailers to distribute Potable Aqua.
VI. Media
A. In 1993 the Uganda government loosened controls on the media and since
then private radio and TV has boomed. While Radio has become one of
the most popular forms of media other types have emerged and include:
34. Television, newspaper, personal computers, and internet. As far as
communications media there is an ―estimated two mainline telephones for
every 1000 people and approximately 30 mobile phones in use for every
1000 people in 2003.‖ Among the 60 local and regional radio stations the
only national radio broadcasting station in the country is, Radio Uganda
which was founded in 1954. Radio Uganda broadcasts daily in 22
languages. There is a public broadcasting station that is sponsored by the
Uganda television. In 2001 it was reported that there were eight
television stations. ―In 2003, there were an estimated 122 radios ,18
television sets, and four personal computers for every 1,000 people.‖
Implications: The most common form of media in Uganda is the radio and newspaper.
This implies that the newspaper and radio will have to be our main source of
communication to advertise our product. Television is another form we could use
although this may not be persistent since many do not own a television. The most
effective way we can promote our product will be by word of mouth through newspaper
and radio.
B. Costs
1. Television: a 21‖ TV runs for 180 USD
2. Radio $15
3. Print ads $8
4. Other media: Internet runs for 45 USD a month.
Implications: Because many consumer goods and services are expensive in Uganda it
will be difficult to make a profit. The recession that started in 2008 will also present
challenges since the overall growth is expected to fall to about 5%. We will also have to
overcome Ugandan preferences for working with their familiar European trading
partners. The recovery of the U.S. dollar in late 2008 increased the cost of U.S. goods
C. Agency Assistance
5. There are few agencies that assist with media. Overal there are
two main ad agencies in Kampala, including ZK Advertising
Uganda Moringa Ogilvy. Newspapers will also an agency that
will assist with media because newspapers are one major sources
for assistance with media.
Implications: There are only a few agencies that will assist with media. Therefore, we
will need to make sure that the one we do choose will be effective and efficient for our
target market.
C. Coverage of various media
1. Many firms in Uganda market their products with billboards,
newspapers, radio and television advertising. Most ad
campaigns use English although, some use the local language.
Sales techniques in industrialized economies are relatively new
in Uganda, but are increasingly popular and successful. Music
concerts and national soccer and basketball teams have also been
used as a good source of promotions for many Ugandan firms.
Implications: We will be able to effectively reach our target market through billboards,
newspapers, television, music concerts, national soccer and basketball teams. The Radio
35. will most likely be the most effective way to communicate with our target market since
many people in Uganda have access to a radio.
D. Percentage of Media reached by each media
1. Radio reaches 46% of population
2. Newspaper reaches 40%of population
3. television 10% of population
4. internet 4%
Implications: Uganda uses radio and newspaper as the main means of mass
communication. This means that we will have to use both the radio and newspaper for
our main means of communication to the Ugandans.
36. . VII. Sources of Information
https://www.cia.gov/library/publications/the-world-factbook/print/ug.html
http://www.infoplease.com/ipa/A0108066.html
https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html
http://www.nationsencyclopedia.com/economies/Africa/Uganda-WORKING-
CONDITIONS.html
http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gale=prefix=wen_0012_0002_0_=
startPage=01175=suffix=-p=npages=15.pdf
http://www.infoplease.com/ipa/A0108066.html
http://www.ia-uganda.com/doing_business_in_uganda.html#investment2
http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gale=prefix=wen_0012_0002_0_=
startPage=01175=suffix=-p=npages=15.pdf)
http://www.photius.com/countries/uganda/economy/uganda_economy_foreigntrade.html
http://www.bou.or.ug/bouwebsite/opencms/bou/collateral/exchange_rates.html
http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gale=prefix=wen_0012_0002_0_=
startPage=01175=suffix=-p=npages=15.pdf)
www.cia.gov
http://kabiza.com/African-Insights-Blog-cost-of-living-Uganda.htm
