Private Sector Experiences in Uganda Herbert Rwamibazi Managing Director AH Consulting Ltd www.ahcul.com 14 November 2011 Kigali, Rwanda
Presentation Areas • Private Sector Objectives • Successful Companies • Levels of Competition • Understanding the Private Sector • Doing Business in EAC • Conditions for Bidding • Capacity Conditions Analysis • Challenges • Successful Strategies
1. Private Sector Objectives To offer products and services that are competitive [quality and pricewise] while providing an adequate return on resources employed in production of the goods and services
2. Successful Companies • Win • Deliver results • Profitable • Sustainable businesses
3. Levels of Competition • In-Country Competition • Regional Competition • Continental Competition • Global Competition
4. Understanding the Private Sector Effective Efficient
5. EAC Doing Business Factors Source: WEF Report 2011
Doing Business Factors - Uganda Source: WEF Report 2011
7. Capacity Conditions Matrix Conditions Capacity
8. Challenges for Private Sector • Intense competition from global companies • Reliability of international partners • Absence of preferential treatment • Supply side challenges – especially finance • Difficulties in understanding plans • High transaction costs
Challenges for Private Sector – Cont’d • Delayed payments • Speed of decisions • Poor communication on decisions • Challenges with bid securities • Building capacity without work • Poorly specified requirements • Poor contract management • Knowing how to lose
9. Success Strategies for Companies • Defensive Strategies • Offensive Strategies
Defensive Strategies ‘Defensive strategies lower the probability of attack, divert attack to less threatening avenues or lessen the intensity of attacks’. Michael Porter, Competitive Advantage. • Raise structural barriers • Increase expected retaliation • Lowering the inducement for attack
Offensive Strategies • Innovations and reconfigurations • Redefine the competitive scope • Invest in acquiring a superior market position ‘The cardinal rule in offensive strategy is not to attack the leader with an imitative strategy regardless of resources’. Michael Porter, Competitive Advantage.
Other Strategies • Collaborations – J/V’s, associations, sub-contracts • Competing in other markets • Increasing performance • Speed • Quality • Reliability • Dependability • Flexibility • Competing on quality • Local preference???