Uganda: Why is the middle class shrinking despite its economic growth?

Those who argue that the two retailers failed to understand the economy cite locally-owned retail businesses, which are thriving and growing, even though they aren’t as big as Shoprite and don’t maintain as high a standard. They also argue that these big stores were selling products – such as apples imported from South Africa and expensive food items – that Ugandans could easily purchase on the roadside or from small and medium retail shops in Kampala at half the price.

Others argue that the exits are an indicator of how the economy is growing, but without creating a larger middle-income class that can sustain these stores. Given that it’s difficult to gather accurate data on economic performance across Africa, Timothy Kalyegira, a retired journalist and independent researcher, says such companies that are listed on the London or Johannesburg Stock Exchange, which operate under strict