Covid-19 shuts down big Arua businesses

 “I closed [the supermarket] because I had accumulated rent arrears from the 2020 March lockdown. Some of the products were expiring because people were not buying them. Before closing, I had laid off more than 40 staff of the 80 that I had. It is sad that these youth have lost jobs,” Mr Odoi told Daily Monitor on Monday.

In July last year, the Arua City health team impounded Shs190m expired goods and disposed them of. 

As the many businesses remained closed, in December 2020 another Shs130m expired goods were impounded and destroyed.

 With this, Mr Odoi said he had no option but to close the supermarket.

 “Before the lockdown, we were making between Shs1.2b and Shs1.5b monthly.  But when the pandemic hit, we could not make even Shs500m per month. We could not afford to pay rent, taxes, workers, utilities such as water and electricity. The only option was to close,” he said.

Mr Odoi explained that most of his clients are Congolese and South Sudanese but following a ban on movement, he sees no hope of revival even after the recently imposed 42-day lockdown is lifted.

He added that his landlord is demanding him an undisclosed  amount in  rent arrears from the three floors he was operating from on Transport road in Arua City. 

Mr Odoi was paying Shs20m rent monthly.

“If government can offer financial incentives for registered businessmen, it would enable us to return to business. This is because government is also losing taxes from businesses that closed across the country,” he added.

 Ms Susan Wadiko, a businesswoman in Arua City, said with the second wave of the virus many people are scared of moving.  

 “Many people are scared to come and eat food. I am trying to deliver packed food to my customers but it is very costly because I have to hire a boda boda. I am likely to close next week and reopen after the lockdown,” Ms Wadiko said.

However, Ms Wadiko said she was considering joining retail business in order to continue supporting her children’s education.

“The dilemma is that if I close the business, I will not have money to pay fees once schools reopen. I have three children where I pay more than Shs2m in fees. Life is difficult,” she said.

In other places, several businesses that closed last year have not reopened due to accumulated rent arrears and pressure on loans. A 2020 rapid survey of businesses by the Economic Policy Research Centre (EPRC) in Uganda reveals that three quarters of businesses have laid off employees due to the risks presented by Covid-19 and subsequent containment measures. 

The survey suggests that lockdown measures have reduced business activity by more than half.

Results indicate that a severe decline in agricultural demand may be to blame as close to 71 per cent businesses in agriculture reported severe decline in demand compared to 47 per cent in manufacturing and 49 per cent in other services.

Ms Grace Amviko, one of the frequent customers at the closed supermarket, said: “I was surprised to find it closed because they had most of the things people need. Many businesses are struggling and it will be unfortunate if more close because they had offered employment opportunities for our people.”

Closure of schools

Mr Frank Olema,  the owner of Fat Secretarial Bureau and Supplies in Arua Town, said: “We have been relying on schools to print their exams and other materials. But since the schools were closed, there is no business. Ever since the first lockdown, we have made loses because few people are coming to print or even photocopy.”

Mr Olema revealed that he had initially closed his business and reopened after students returned to school but they have also since been sent back home.

Before the pandemic, the businessman was earning more than Shs3.4m but lately he gets between Shs500,000  and Shs800,000 monthly.

 Mr Olema, who pays Shs350,000, in rent has accumulated three months rent arrears now.

Despite the hardships, Ms Comfort Adiru, a businesswoman dealing in clothes, said she will continue struggling to make ends meet because she has a Shs4m loan to clear.

 “Life is difficult but I have to continue with my business. I hope the President lifts the lockdown soon. Some of my colleagues have permanently One of the frequent customers at the closed their businesses following the first lockdown,” Ms Adiru said.

Hotel abandoned

The Proprietor of Daudi Courts Hotel, Mr David Oyergiu Owino, on Monday said his customers have abandoned the hotel after Chinese nationals residing at the facility tested positive for Covid-19 at the onset of the pandemic.

He said the situation got worse after 13 hotel workers, three of his children and three relatives who were at the hotel were asked to quarantine for two weeks as they awaited the results of their samples.

“The district taskforce disinfected the hotel but people are still afraid of using our services. Up to now people still accuse us of bringing the virus. The loss is just too much and government has not come to our aid,” he said.

Mr Owino said he has lost more than Shs80m since March last year.