Aidah Nanyonjo
1 November 2008
opinion
Kampala — WHAT do the changes in many world economies mean to Ugandans and how can we cope?
The Executive Director of Enterprise Uganda, Charles Ocici, suggests ways to survive the global economic crisis.
Most people will have high expenditure on utilities and food items yet there is no increase in salaries. It is important to cut all the unnecessary costs to reduce one's expenses.
Just as Europeans and Americans are cutting out luxuries like overseas tourism, Ugandans should also stop spending anyhow.
If you run a business using imported goods, the situation is going to affect you because foreign exchange rates will be outside your control.
So, look out for locally available supplies that can replace the importable products. If in the past imports were cheaper, probably local materials might now be cheaper. But for the local materials to match the standard of imports, a business person must be efficient and reliable to help develop the local supplier's capacity to meet those standards.
People with some money should not give up on the stock market. This is probably a better time to invest than any other. Over 50% of investors in the stock market are foreigners and they are likely to quit.
The moment they jump out, that is an opportune time for Ugandans to invest in stocks. However, one should select a very solid firm that can survive the wave and be careful to stay diversified.
It is important to do what you need to do to protect your assets. Get support from a financial advisor. But no matter what you do, you should not bring your risk down to zero.
You are always taking some amount of risk hence you will always have the potential to lose money. Most millionaires have lost money time and time again and I am sure you will, too, at some time in your life.
The point is to do what you can so that even when you lose money, it doesn't wash you away. A little loss won't keep you from food, shelter, or a smile on your face.
The global financial crisis may be a beautiful thing for our country since Ugandans are known for overspending. This time their hands are going to be tied. In the long run we will learn how to spend modestly.
However it is likely to escalate the unemployment crisis and bring social unrest through violent crime and white collar crime.
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