Purchasing power: Why Carrefour wins in Qatar but loses in Uganda
This article analyzes why the supermarket chain Carrefour thrives in Qatar but struggles in Uganda, attributing the difference to purchasing power rather than population size. It argues that economic empowerment is a prerequisite for a viable retail market.
Why it matters
Provides insight into emerging market economics and the limitations of population-based growth strategies in Africa.
Last week, I wrote about how Uganda’s supermarket sector, especially where foreign investors have been key players, has struggled despite the country’s decades of impressive economic growth.
Thousands of Ugandans
This week, I will explore purchasing power in detail and try to address the million-dollar question: How much can Ugandans actually afford to buy? I compare two countries where Carrefour, which inspired last week’s article, operates: Uganda and Qatar, where I have previously lived.
The populations of Uganda and Qatar are vastly different. According to the Uganda Bureau of Statistics, Uganda has 45 million people per the 2024 Population and Housing Census.
Qatar has 3.3 million people, according to the National Planning Council. Large populations create a potential market, and President Museveni has on several occasions defended Uganda’s rising population, saying it can create consumers and wealth creators, if people are empowered.
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