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A few days ago, Kampala Capital City Authority evicted hawkers from the streets of Kampala. The intention is noble.
Order, sanitation, planned trade – a modern city that breathes rather than chokes. Yet behind every evicted hawker is a story. A mother paying school fees. A graduate who did not find formal employment.
The question is not whether cities should be organised. They should. The question is where the displaced energy goes. If we close the pavement, we should facilitate online platforms.
An online marketplace offers such a platform. It is the new trading centre, except that the dust is digital and you bargain with stickers and emojis to make a sale sometimes. It allows the fruit vendor, the tailor, the craftsman, and the farmer to reach beyond the physical stall into a market that never sleeps. Uganda is young.
More than 75 per cent of the population is below 35. According to the World Bank, youth unemployment and underemployment remain persistent challenges across sub-Saharan Africa. In Uganda, thousands of young people enter labour market each year.
The formal sector cannot absorb them all. But the informal sector, empowered by technology, can evolve. But do Ugandans know the incentives they have for SMEs? Many do not.
In recent years, government has introduced measures that allow qualifying small businesses to enjoy income tax exemption for up to three years, particularly those with turnover below Shs 500 million, provided they meet compliance requirements, and other simplified tax regimes.
This is not charity. It is policy recognising that growth needs breathing space. To this, add the Parish Development Model, digital financial services expansion, and e-government systems, and you begin to see a pattern. The state is not merely regulating. It is nudging. Online marketplaces align beautifully with this policy direction.
They reduce the cost of entry. A physical shop in a prime location demands rent, utilities, security, and sometimes a landlord with a suspicious eye. An online store demands a smartphone, internet access, and creativity.
Rent is data and security is trust. A boda boda rider may not quote Adam Smith, but he understands supply, demand, and the convenience of a cashless transfer. This is fertile soil for online marketplaces.
A craftsman in Masaka making leather sandals can sell not only to passersby but to buyers in Gulu, Mbarara, or even the diaspora. My Mugisu friend can advertise organic Arabica coffee directly to urban consumers who care about quality and traceability. The marketplace becomes national, even global.
Without heavy overheads, entrepreneurs can price competitively. They can experiment. If one product does not sell, they pivot. And they can get products from anywhere. In the physical world, you may require repainting a signboard but online requires updating a page. Data is modern wisdom, if interpreted correctly.
An online platform can show which products are viewed; which are abandoned in baskets; which regions respond best. With such insight, business becomes less guesswork and more strategy.
Yet we must not romanticise. Online marketplaces face real challenges; trust is fragile. Fraud can spread faster than truth. Regulation must, therefore, balance innovation with consumer protection.
Clear guidelines on e-commerce, digital contracts, and dispute resolution are essential; logistics remain a hurdle. Delivering a package from Ntinda to Nansana may take longer than required. Public infrastructure, address systems, road networks, and warehousing solutions must improve.
Public and private partnership is vital. Other issues include uneven digital literacy, cyber security and mindset. If Uganda is to move towards a digital and cashless economy, online marketplaces will be central.
Smart cities are not built only with concrete and streetlights. They are built with systems that allow citizens to transact efficiently, transparently, and conveniently. Suddenly, the removal of hawkers from streets is not merely displacement but transformation. Policy support must, therefore, be intentional.
Government can provide tax holidays, subsidised internet for SMEs, and simplified business registration through online portals. Financial institutions can design credit products based on digital sales history.
Development partners can fund incubation hubs focused on e commerce. If we combine sound policy, supportive regulation, digital infrastructure, and the entrepreneurial spirit of Uganda, the online marketplace can become not just a source of income, but a pillar of national transformation.
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