Overview:
The Ugandan government introduced incentives to promote cleaner fuels, such as waiving value-added tax on cooking gas and implementing bulk rates for electricity.
A recent ban on commercial charcoal production in northern Uganda has led to a severe shortage and price hike, affecting businesses that rely on it for cooking. Gertrude Arineitwe, a bushera brewer in Nansana, a suburb of Kampala, is one of the many entrepreneurs struggling to cope with the new reality.
Arineitwe, who has been brewing bushera for seven years, typically uses two spadesful of charcoal worth 4,000 Ugandan shillings (approximately $1) to make her day’s brew. However, the same amount now only fills half her bag, forcing her to reduce production.
Another entrepreneur, Jane Nabbagala who runs a restaurant in Nateete, shares similar concerns. “I used to spend 50,000 shillings ($13) on charcoal per week, but now I spend over 100,000 shillings ($26) for the same amount. It’s becoming unsustainable,” Nabbagala says. “I’ve tried using gas, but it’s too expensive, and my customers complain that the food tastes different.”
In Kibuye, Mariam Kukundakwe, a night food vendor, also struggles to keep her business running. “I sell food at night, but to keep it hot, I have to use charcoal. Gas cookers can’t support my business,” she explains. “The charcoal prices have more than doubled, making it hard for me to keep my business running. I’m not sure how much longer I can continue.”
The Ugandan government introduced incentives to promote cleaner fuels, such as waiving value-added tax on cooking gas and implementing bulk rates for electricity. However, 94% of households still use charcoal and firewood, and businesses are finding it difficult to adapt.
Alternative fuels are too costly, and switching to electricity is unaffordable due to high startup costs and unfamiliar cooking techniques. Arineitwe estimates that using electricity would increase her costs from 14,000 shillings ($3.50) to 50,000 shillings ($13) per day.
The government aims to transition the country away from charcoal and firewood by 2030, but businesses like Arineitwe’s are struggling to adapt. With profits dwindling, Arineitwe now only makes bushera for special requests, asking customers to provide firewood and flour.
The charcoal shortage has left many entrepreneurs in limbo, unsure of how to sustain their businesses. As the government continues to push for cleaner fuels, it remains to be seen how businesses like Arineitwe’s or Kukundakwe’s will cope with the transition.