Mbarara market vendors hit hard by debt, hawkers undermining struggling traders.
Vendors in Mbarara Central Market are being forced to abandon their shops due to mounting financial pressures.
The increased competition from hawkers, coupled with low sales and high rent, has left many struggling to stay afloat.
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Those who took out loans to invest in their businesses are now facing the threat of default, with some vendors hiding from banks and SACCOs due to their inability to repay the debts.
“The hawkers are everywhere, selling the same goods as us but at cheaper prices since they don’t have to pay taxes,” said Kibanda Donozio, a business man and leader in the market. “This has greatly affected our sales. Customers flock to them because they can offer lower prices, leaving us with little to no business.”
Donozio Kibanda , a vendor who doubly serves as the district councillor Bilele subcounty, Isingiro District explained that the situation has become dire for many vendors who borrowed money to invest in their businesses, only to see their profits vanish.
“If the government doesn’t help us out, many of us will end up in prison for failing to pay back the loans,” he warned. “Shops are closing because people can’t afford the rent or to pay off their loans.”
Power outages have also worsened the situation. Vendors who rely on electricity for refrigeration or lighting are finding it increasingly difficult to run their businesses.
“At least twice a week, we lose power for an entire day,” Donozio added. “The market becomes dark, and thieves come in to steal our goods. We therefore ask the city council to provide a standby generator.”
Quraish Lugemwa, General Publicity Officer for Mbarara Central Market, echoed Donozio’s concerns.
“Many shops are now closed because the vendors simply can’t keep up with the high rent and low sales,” he said.
“They are being squeezed out, while hawkers continue to operate freely without the same financial burdens.”
He also attributed the increasing number of closed and unoccupied shops in the market to poor infrastructure.
"Many vendors are abandoning their stalls because the stairs leading to the upper floors are difficult to access," he explained. "If they could install exterior stairs that provide direct access, it would make the upper-level shops more appealing to both vendors and customers.
As it stands, people prefer to avoid these areas, leaving many shops empty and inaccessible."
For vendors like Ayesigye Cecilia, who sells fresh foods, the daily struggle to make a profit is becoming unbearable.
“Customers always want lower prices, but the cost of goods keeps changing. Hawkers take advantage of that and steal our customers,” she explained. “It’s hard to compete when we have to pay rent, taxes, and loans, and they don’t have those costs.”