Potable Aqua in Uganda

Presentation OutlineMichael Hamling

Lyles Armour

Josh Leiker

Nelson Esseveld

Introduction and Cultural Analysis

Economics

Doing Business in Uganda

Business Continued and Closing

CULTURAL ANALYSIS

History

• Former British territory, gained independence in 1962• Political history plagued by violent takeovers and citizen massacres• Idi Amin led a noncitizen expulsion in 1972, crippling Uganda’s

agricultural and industrial sectors• Current president Museveni has succeeded in restoring some

prosperity• 17-year battle between government and the Lord’s Resistance Army

(LRA)• Battle has caused the economic dislocation of up to 200,000 Ugandans

IMPLICATIONS: Severe economic, social and political disruption has hindered development of infrastructure needed to provide clean water. Potable Aqua tablets could help Ugandans get safe drinking water in any part of the country.

Geographical Setting

• Landlocked nation bordered on one side by Lake Victoria

• About twice the size of Pennsylvania • Contain numerous lakes and rivers, but water

generally unsafe for drinking• Temperatures in upper 70s, seasons defined

by rainfall variations• Northwestern corner of country is hotter and

more arid

IMPLICATIONS: While water is abundant in most parts of Uganda, it needs to be purified to become drinkable. Potable Aqua tablets are easily transported and stored even in extreme conditions.

Social Institutions• Very male-dominated society

• In rural areas, subsistence farming and ranching is common• Women most likely housewives in rural areas, married at a young age with

a dowry called “bride wealth” paid by the groom’s family to the bride’s family

• Polygamy is generally accepted• In urban areas, women are more likely to have jobs although growth is

limited• Extended families are important and are often called “clans”• Pooling of income and resources within the clan is a necessity for survival

IMPLICATIONS: There is a good market for Potable Aqua tablets within the tight-knit clans. While individuals may not be able to afford to purchase these tablets regularly, it is likely that the clan will pool resources on order to drink safe water.

Doing Business in Uganda• Handshakes are an appropriate greeting (use the right hand)• Ugandans use indirect communication (analogies and stories)• Humor is very important to communicate and build good relationships• Punctuality is valued in business settings but not important otherwise• People who dress well (suits and well-kept shoes) are more respected• Women should wear long skirts in rural areas• First names are reserved for close friends. Titles are important• English is used in all business settings

IMPLICATIONS: The business atmosphere in Uganda is similar to that of the United States. This should make transactions go more smoothly and will also allow for better communication about the market and its demands.

Religion

Language • English is the official language, used in schools, government, and business settings

• Ganda, Swahili, and Arabic are also widely spoken

• Most Ugandans know at least one African language

• Primarily Roman Catholic and Protestant

ECONOMIC ANALYSIS

PopulationPopulation 32,369,558 Ranked 58th out of 228 (US ranked 22nd) Birthrate 48.15 per 1000 Ugandans

Age Distribution 0-14 years: 50% (male 8,152,830/female 8,034,366) 15-64 years: 47.9% (male 7,789,209/female 7,703,143) 65 years +: 2.1% (male 286,693/female 403,317)

Economic Statistics

GDP2007: 20,953,000 (12,177 million US dollars)2008: 24,697,082 (14,353 million ins US dollars)Agriculture 29% (80% of labor force)Industry 24.8%Services 46.2%

GDP Per Capita $1,100 (steady for past 3 years)

Implications

A growing economy means growing purchasing power. As Ugandans become more prosperous, they will be able to afford commodities such as Potable Aqua tablets.

Based off the per capita data, we see fit that Ugandans will have a greater power to purchase our product.

Economic Activity

Exchange rates of Uganda Shilling:

82%

5%

13%

% of GNP

AgricultureIndustryServices

vs. U.S. Dollar: 1,720.7vs. ECU/Euro: 2,490.9vs. Japan Yen: 16.6vs. Swiss Fanc: 1,594.3vs. Pound Sterling: 3,150.9

Principal Industries:

Communication Transportation

Availability 100,000 telephone lines 380,00 mobile subscriptions 5 million radios 294,000 computers in use

Types Telephones

Domestic & International Mobile Phones

Radios and TV’s 7 AM 33 FM 8 TV stations

Newspapers New Vision

Computers

Methods Airports

5 paved 27 unpaved

Railways 772.99 miles

Roadways 10,110 miles paved 33,848 miles unpaved

Waterways

Implications:

Shipping our product to Uganda will be simplified by the waterway connections throughout the country. This is an inexpensive and reliable method of shipping Potable Aqua tablets.

Real World Experience in Uganda

DOING BUSINESS IN UGANDA

Market Overview

Working conditions

Market Challenges Corruption Poverty

Trade Statistics

Countertrade Grew in 80’s

Foreign Aid 15.6% of GNI $959 Million

Major items: Cotton Coffee

Implication:

Because Ugandans receive large amounts of foreign aid, they will be more prone to have a positive view of American-made products

Science and TechnologyScience

• Medical association, • Child malnutrition unit,• Agriculture research institute • Forestry research center• Cotton research station

Technology

Communication: Cell Phone, Radio, Television, computer

Channels of DistributionRetailers

• 2,501 • Small shops

Wholesale middlemen

• Products distributed through wholesalers

• Transporters • Buy bulk • Sell to small and rural

shopkeepers

Penetration of Urban and Rural Markets• Markets not well developed • research and ground work

Media

Main forms of Media • Television • Newspaper • Personal computer• Radio• Internet

Implications• Radio• Newspaper

Uganda ask Questions

&

Uganda get Answers!