Every year, hundreds of Construction and infrastructure consultancy firms are established in Uganda— yet within five years, over 95% of them shut down. A major cause of this high failure rate is delayed client payments, especially for government-funded projects.
One of the biggest and most consistent expenses any company faces is office rent. When cash flow becomes tight due to delayed payments, businesses can often reduce other operational costs — but rent remains an unavoidable burden. Once you can no longer afford it, closure becomes almost inevitable.
The best long-term solution is to invest in owning your own office space. It doesn’t have to be large or luxurious at the start. Even a modest, well-planned office can provide stability and sustainability. You can build it in phases, expanding gradually as your company grows. This approach ensures you’re not held hostage by rent pressures and helps secure your company’s survival and independence. Besides Clients also have more respect for you who has a permanent Address. To them it’s another sign you are here to stay.
At Joadah, we realized this and decided to build our own offices even though it took us 10 years to complete. We can now be able to handle the pressure of delayed payments appropriately.
Once we are able to cover that aspect of the company, you are able to withstand the storm a Construction Company faces in Uganda. However, if we do not, time is soon coming when most companies in Uganda will be foreign-owned and this is a big disaster for the development of the Country.
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Written by
An Infrastructure Consultant, Entrepreneur and Motivational Speaker. CEO Joadah Consult
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