Ugandan businesses and the succession curse

 August 14, 2025   |    58 views

Uganda has a vibrant entrepreneurial culture, with many businesses founded by visionary leaders who built empires from scratch. However, a recurring challenge threatens the sustainability of these enterprises—the succession curse. Many Ugandan businesses struggle to survive beyond their founders, often collapsing or losing relevance when leadership transitions occur. This article explores the causes of this curse, its impact on the economy, and potential solutions to ensure business continuity.

Why Does the Succession Curse Happen?

1. Lack of Succession Planning

Many Ugandan business owners, especially in family-run enterprises, fail to prepare for leadership transitions. They either avoid the topic due to fear of losing control or assume that their children or relatives will naturally take over without proper training.

2. Family Conflicts and Nepotism

In family businesses, succession often sparks disputes among heirs, leading to divisions and mismanagement. Some founders appoint successors based on loyalty rather than competence, weakening the business’s long-term viability.

3. Weak Corporate Governance

Many Ugandan businesses operate informally, without clear structures for decision-making. When the founder exits, there is no established system to guide the new leadership, leading to chaos.

4. Resistance to Professional Management

Some founders hesitate to bring in external professionals, fearing loss of family control. This limits innovation and prevents the business from adapting to changing markets.

5. Economic and Political Instability

External factors like economic downturns, policy changes, and political interference can disrupt business transitions, especially when new leaders lack the experience to navigate such challenges.

The Impact of Poor Succession

• Business Collapse: Many once-thriving companies disappear after the founder’s exit.
• Loss of Jobs: Failed successions lead to layoffs, affecting employees and the broader economy.
• Reduced Investor Confidence: Unstable businesses deter local and foreign investment.
• Weakened Brand Legacy: Companies that fail to transition smoothly lose their market position.

How Can Ugandan Businesses Beat the Succession Curse?

1. Develop a Clear Succession Plan

Founders should identify and groom successors early, providing mentorship and gradual leadership exposure.

2. Embrace Professional Management

Incorporating skilled professionals—even from outside the family—can bring fresh perspectives and improve governance.

3. Strengthen Corporate Governance

Implementing boards of directors, clear policies, and accountability structures ensures smoother transitions.

4. Resolve Family Disputes Amicably

Mediation and legal frameworks can help prevent destructive conflicts among heirs.

5. Adapt to Market Changes

Successors must be trained to innovate and respond to industry trends, ensuring business resilience.

Conclusion

The succession curse remains a major threat to Ugandan businesses, but it is not inevitable. With proper planning, professionalization, and strong governance, enterprises can transition successfully and thrive for generations. Founders must act now to secure their legacies and contribute to Uganda’s sustainable economic growth.