Salon Operators Urged to Register Businesses, Form Saccos to Access Government Support

Salon operators in Uganda are being encouraged to formalize their businesses by registering and forming Savings and Credit Cooperative Organisations (SACCOs). This move aims to improve their access to government support, affordable financing, and opportunities for business growth.

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When salon businesses are registered, it becomes easier for the government to know who is operating and how best to support them.

Julius Byaluhanga of the Private Sector Foundation Uganda (PSFU) emphasized that formal registration makes it simpler for government agencies to identify and support salon businesses, while also promoting transparency in tax payments. "When salon businesses are registered, it becomes easier for the government to know who is operating and how best to support them," Byaluhanga stated. He added that registration helps business owners expand their incomes and contribute to national development.

Byaluhanga also promoted the formation of SACCOs, highlighting that collective savings and access to affordable credit can strengthen businesses and enhance financial resilience. The Federation of Uganda Salons and Beauty Professionals organized a meeting to equip operators with business management skills and prepare them for government initiatives. Celestine Kamanyire, CEO of the Federation, said the goal was to help members run businesses efficiently and benefit from private sector programs.

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We organised this meeting to prepare our members to run their businesses efficiently, avoid unnecessary challenges and position themselves to benefit from government programmes and other opportunities available to the private sector.

Despite these efforts, salon operators voiced concerns about high taxes on imported equipment and beauty products. They appealed to the government for reductions, arguing that these costs significantly reduce profits. "The taxes imposed on salon products and equipment are too high. If the government reduced them, many salon businesses would survive and grow, creating more jobs and improving our livelihoods," one participant noted. The beauty industry in Uganda is largely informal, and increased formalization and financial inclusion are seen as key to job creation and tax compliance.

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The taxes imposed on salon products and equipment are too high. If the government reduced them, many salon businesses would survive and grow, creating more jobs and improving our livelihoods.