We expect Uganda's economy to continue growing without major hiccups. However, the growthin household incomes will not be sufficient to transform the food and drink sector. Even though the numberof affluent households will increase, this will have only marginal effects on MGR sector, which has beendecimated by the financial troubles of Kenyan retailers and will not recover by 2018. The vast majority ofUganda's consumers, especially in rural areas, where 80% of the country lives, will continue to rely ontraditional retail channels or produce their own food, making entry of new retail chains or food brandshighly challenging.
Latest Updates And Industry Developments
Nakumatt, the troubled Kenyan retailer, closed three stores in Uganda after an undisclosed investorfailed to inject USD75mn that was pledged in early 2017. The firm's debts have been revealed to amountto KES30bn (USD289mn), making its rescue highly unlikely.