This has sparked concerns about the impact on locally owned businesses, with some Ugandan traders worried about their ability to compete.
Visitors to the newly opened China Town Kampala at Lugogo Shopping Mall have been sharing prices of various products on social media, revealing that the store offers significantly lower prices than most other retail outlets in the city.
China Town Kampala store opened its doors on Saturday, 31 August, in the space previously occupied by Game Store. This development is part of a wider trend, as China Town stores have established a presence in several countries. However, their ability to offer lower prices often leads to resistance from local traders. In Uganda, wholesale traders in the Kikuubo area have already begun protesting against Chinese involvement in the retail sector, fearing that it could drive them out of business.
The space now occupied by China Town store was once a symbol of international confidence in Uganda’s economy. Game Store, which opened at Lugogo Mall in 2004 with an investment of $11 million, served as the mall's anchor and catered to Kampala’s affluent shoppers. However, Game announced its departure from Kampala in 2022, joining a list of other prominent foreign retailers, including Shoprite, Uchumi, Nakumatt, and Tuskys, that have exited the market in recent years.
Since China Town Kampala's opening, there has been a notable buzz among shoppers, with many eager to explore what they see as affordable shopping options. Long queues have formed as customers flock to the store, hoping to find bargains and stretch their budgets. The excitement is evident, but so too are the concerns about the long-term impact on local businesses and the broader retail landscape in Kampala.