Some of the businesses in Fort Portal town have closed down, while others have reduced on the costs of operation by reducing on the number of staff employed due to the current economic hardships.
The affected businesses are stationery shops, electrical shops, shops selling second hand clothes and supermarkets.
At SS Mugasa Stationeries, the largest stationary shop in Fort Portal, the proprietor, Stephen Mugasa says that seven staff were laid off last week in order to reduce costs of operation.
Mugasa says that he spends a lot of resources to purchase the items, pay salary of his workers, rent and utility bills. He says that in the past he was employing twelve staff and was spending over 1.2 million shillings on salary, which he can’t afford now.
Mugasa also says that ever since he increased the prices of items in his stationary shop, he now gets fewer customers and therefore he can’t afford operation costs.
At Asatex Supermarket, Mary Asaba, the manager says that the economic crisis has forced her to increase the price of some commodities, but customers coming to her supermarket are very few.
Asaba says that although she is not paying rent for the premises, she has no option but increase the price of commodities because she spends a lot of money to hire a truck from Kampala to transport her merchandise to Fort Portal.
Some of the traders who can’t afford the high rental fees that have been increased by the landlords are also closing shop.
Frank Irumba, a trader on Rukidi II Street says that he has no option but to close his business. Isingoma, who deals in general merchandize, says that if he pays the rent, he will not be able to make profits from his business and yet he has to pay rent for his family and other utility bills at home. He also says that he does not regret closing his business because he was even not getting customers to purchase the items.
//Cue in: “This rent…”
Cue out: “…you are not in business”//
Some traders in Mpanga and Kabundaire, the major markets in Fort Portal have also reduced on the quantity of clothes and shoes they have been purchasing in bulk from Mpondwe in Kasese district and Kampala.
Stella Karunga, a trader at Mpanga market says that in the past, she has been purchasing a whole bale of clothes and shoes, but now she is purchasing half a bale. She however says that she still fails to get customers and at times she spends a week without selling any cloth and yet she is supposed to pay a daily rental fee for her stall worth 1,500 shillings.
However, some traders have devised means of remaining in business, despite the hard economic times. Two or more traders have resorted to sharing space in some shops, to reduce on the costs of rent, while others who frequently travel to Kampala, are purchasing items in bulk to reduce on transport costs.
