Lango, Uganda: The business community across the Lango Subregion is demanding a formal investigation into the silent collapse of enterprises in northern Uganda, warning that the region is facing a deepening economic crisis despite a rise in entrepreneurship and income levels.
The concern was raised during the closing ceremony of a three-day Uganda Development Bank (UDB) training for 30 small and medium-sized entrepreneurs held at Grand Pacific Hotel in Lira City on Tuesday. Participants expressed alarm over the increasing number of businesses folding within just a few years of operation.
“We are working hard, and people are earning more than before, but the tragedy is that businesses are dying faster than they are being created,” said Patrick Ouni, proprietor of Brickstone Guest House in Lira City. “Something deeper is eating into our economy, and we need to investigate what exactly is going wrong.”
A Growing Crisis in Northern Enterprise
Once a vibrant commercial hub, Lira City is now dotted with closed shops, struggling hotels, and collapsing retail outlets. Traders say while government and financial institutions have rolled out several credit and training initiatives, business sustainability remains elusive.
Morish Chris Ongom, Director of the Uganda National Chamber of Commerce and Industry (UNCCI) for Lango Subregion, warned that growing political distractions among entrepreneurs are undermining business discipline.
“We are seeing a worrying trend where some entrepreneurs spend more time in politics than in managing their ventures,” Ongom said. “Once that happens, discipline fades and businesses crumble. We must separate politics from enterprise if we are to rebuild confidence and consistency.”
But Ms Barbara Kasekende, Head of Business Advisory at Uganda Development Bank, said the Bank’s new focus is to help businesses survive beyond the lives of their founders.
“Our goal is to build institutions that endure even when their owners are gone,” she explained. “Most businesses here are personality-driven — when the owner falls sick or passes away, the enterprise dies too. That’s the structural weakness we must fix.”
The UDB’s training program emphasized financial literacy, corporate governance, and business planning, areas the Bank believes are critical to reducing Uganda’s high business mortality rate, which remains among the highest in the region.
Apac Traders Decry Chamber Exclusion and High Fees
In Apac District, local business leaders voiced frustration over disunity and exclusion within the private sector, citing the Uganda National Chamber of Commerce and Industry (UNCCI) as being out of touch with small traders.
“Some business people think the Chamber of Commerce is for the well-to-do,” said Denis Obete, Chairman of the UNCCI Apac Branch. “That perception is wrong, but it’s hurting our efforts to mobilize traders and speak with one voice.”
Ogwang Tom Richard, the Municipal Principal Commercial Officer for Apac, noted that government sensitization campaigns to organize traders have been met with resistance. “Without unity, it’s difficult to attract government support or private investment into local trade,” Ogwang said.
Small traders, however, argue that high membership fees are the main obstacle. “The fees are too high for local shop owners,” said Sam Omara Omego, Chairman of the Business Community in Apac Town. “A small trader can’t afford what the Chamber is asking. We need a fair system that allows everyone to belong.”
Entrepreneurs from across Lira, Apac, and the wider Lango region are now calling for a comprehensive probe into the factors behind the collapse of local enterprises, citing possible gaps in government policy implementation, credit management, and market regulation.
“We need transparency and accountability,” Ouni said. “If we don’t address the causes of these failures, we’ll keep losing investors and hope in equal measure.”
Economic analysts warn that if the situation persists, northern Uganda’s private-sector recovery could stall, reversing the progress made since the end of the LRA insurgency and driving unemployment higher across the subregion.
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