Residents struggle with high rent, business decline amid influx of Eritreans in Makindye

Residents of Makindye Division have voiced their frustrations over what they perceive as an influx of Eritreans dominating local businesses ranging from salons, shops, supermarkets, restaurants and more.

Many locals claim that this has led to increased rent and a decline in business opportunities for Ugandan entrepreneurs.

Local shopkeeper, Sarah Nanteza, shared her concerns: “Business has been really low for us locals. The Eritreans have taken over almost all the shops, and we can’t compete with their prices. It’s becoming impossible to make a living here.”

Another resident, John Mbabazi, echoed these sentiments, adding, “We are being priced out of our own market. The rent has gone up so much that many of us can’t afford to keep our shops open.”

Allan Ssewanyana, the Member of Parliament for Makindye West, complained that the prices of rent in his constituency had literally shot through the roof.

“Most of these people [foreign traders] have too much money to avail themselves of good housing. This has brought problems as the landlords in these places don’t wish to accommodate the residents of Ugandan origin, preferring the Eritreans because they come with a lot of money,” Ssewanyana was quoted in the media as having said.

Landlords in the area have a different take on the situation. One landlord, who requested anonymity, explained that house rent is ultimately a business, and they prefer tenants who can pay consistently and on time.

“It’s not about nationality; it’s about reliability. The Eritreans pay their rent on time, while many of our local tenants do not. Cooperation is hard when residents delay payments and often shift if they are being demanded,” he said. “We have to give houses to those who can afford to pay. It’s unfortunate, but we have to make a living too. The Eritreans have proven to be reliable tenants.”

On July 5, 2024, an operation by Immigration officers resulted in the arrest of over 127 foreigners, including a significant number of Eritreans, for allegedly staying in Uganda without legal documentation.

The recent arrests have cast a spotlight on the issue of legal documentation and work permits among foreign nationals in Uganda.  Authorities revealed that over 200 foreign nationals were verified to be compliant with migration laws.

However, the incident has raised questions about the enforcement of immigration laws and the processes in place to ensure compliance.

According to the Ministry of Internal Affairs spokesperson Simon Peter Mundeyi, when refugees arrive in Uganda, they are given IDs, but these do not guarantee them the right to start working or open businesses immediately.

“They need to first register with immigration to get a work permit, which is free of charge. However, the problem is some people do not know this,” the spokesperson explained.

The spokesperson also clarified that work permits are for formal jobs and not casual jobs, adding complexity to the situation.

The tension between local residents and Eritrean business owners reflects broader economic and social challenges in the area. While landlords and some business owners benefit from the timely payments and reliability of Eritrean tenants, many local entrepreneurs feel marginalized and disadvantaged.

One resident suggested that Eritreans may have opened businesses to serve their own community due to language barriers and the perception of segregation by Ugandans, who often hike prices for foreigners. “It seems like they prefer to buy from their own because of these barriers,” he said.

The community of Makindye Division remains divided over the presence and role of Eritrean nationals in their local economy. The outcome of this situation will likely have significant implications for both local and foreign business owners in the area.