An investigation into the underperformance of modern markets in Uganda: a case study of Kitooro market

Abstract

Modern markets have been in existence in African countries only after the end of the twentieth century as a result of adopting the Western culture of market systems. During and shortly after pre-colonial times, many African societies had movable and schedule markets, that is, markets would be situated in different locations each market day, or traders moved with their products to customers and markets occurred in certain areas on given day of the week respectively. The ‘traditional’ markets then emerged, with some sort of structure for traders to set up stalls and showcase their commodities to buyers and these market places were full of people on market days. Markets became meeting places for people who came from within the neighborhood, and from afar and this interaction created ‘trusted customers’ – who showed up every market day. In developed countries, the market system that could resemble the traditional markets in most African states is the trade fair, and to some extent, grocery stores – which deal in sale of raw food products like fresh vegetables, fruits, cereals, meat and others. In most cases, the people in such countries do shopping from supermarkets and malls. Modern markets in Africa, specifically Uganda are usually emblazoned with attractive infrastructure and have a wide variety of merchandise, mostly to pull buyers given their recent introduction. However, given the social attachment buyers have to their local markets that are usually in their close proximity and offer a wider range of choice, as well as allow negotiation or ‘bargaining’ for prices, it is has been made rather a challenge for the new modern markets, that in addition to lacking exposure, they also reduce the choice and social freedom of customers. All such challenges have created the basis for this study, to find the ground causes of their low performance and solicit ways to put their potential to the most optimal level of efficiency.