At one time the mere mention of Asian businesses used to create serious critical debate and consternation. Were they doing the ‘right’ things? Were they investing for sustainability? Did the Asians promote good employment practices? Were they investing in the right sector? Trading enterprises based on import and export, but moslty importing were considered to less beneficial than manufacturing. Behind all this, one of the major concerns, often not articulated clearly was: were the Asian traders not taking unacceptably high profits in a low margin sector of the economy?
It appears that in Uganda these issues are not taking centre the stage at present. It also seems that many Asians have moved higher in the enterprise value chain; they seem to be investing in areas which require major investment, syndicated finance with international partners and banks and they are going into areas which reflect high cost of entry into ‘difficult’ business sectors. They are taking major risks.
However, during the early seventies the centre for Asian retailing used to be Nairobi. How has this changed? This web-log invites contributions that would help to address the following areas of interest:
- What types of concerns still prevail about Asian enterprise?
- Have the Asians moved into higher value-added industries that may be considered to be more suitable for secure economic development? These terms need to be explained.
- Has Asian dominance of retailing been reduced by emerging African traders?
- How are Asian businesses involved in corporate social responsibility, or CSR?
- Are these questions important and valid?
The most successful example of social responsibility that can be recalled is investment in the townships of Lugazi and Kakira, where Asian business ‘dynasties’, that is, the Mehta and Madhvani families provided schools, hospitals, sports fields, safe shopping centres and also good health and welfare facilities. But these sugar factories were remote islands of employment and like mining towns anywhere in the world, the Asian entrepreneurs had to provide the living accommodation and facilities for a civic society.
How well is CSR being practiced today by Asian businesses? It would be good to hear from them.