With a unique story, Vaito was started by two youths with a passion to grow and support other businesses. At first, it was incorporated as Asaba Legacy Company Limited on 22.08.2019. After two years of successful operation, the vision to serve and build other businesses grew, the board of directors suggested a new name that would create legacies for businesses/brands.
The new name was Inspired by the speeches of the president of Uganda Yoweri Kaguta Museveni about Covid-19 and the lockdown where only essential/ vital workers were allowed to go to work while the rest of the population stayed home locked down. With this inspiration of vital/ essential workers the founders agreed to change the name of the company to Vaito and this was effected on 01.09. 2021.
Vaito is derived from the English word ‘Vital’ which represents our belief and the essential nature of our services, while its localized pronunciation, v-a-i-t-o (va-yi-to), represents our commitment to embracing local culture and identity.
According to daily monitor commentary Monday, June 17, 2019, Uganda is one of the most entrepreneurial countries in the world. Many businesses take off annually, but also many fail. In 2015, it was estimated that about 10% of Ugandans started a business where as 20 percent of adults between 18 and 64 years had a discontinued business.
According to GEM’s last report on Uganda, 20 per cent of the businesses in the country collapse within one year, although things might have since gotten worse. A 2022 report on taxation and business environment estimated that about 55 per cent of entrepreneurs started business in the last five years and they failed.
Daily monitor commentary further highlighted that Uganda is said to be among African Countries with the leading business failure rate along with Malawi, Angola, Zambia, Botswana, Ghana and Nigeria. Uniquely though, Uganda is better than only Angola and Malawi in business success rate while the Country presents relatively better investment conditions than all the above countries except Botswana.
One of the indicators of the state of conditions for investment is the economic freedom enjoyed in a market. Economic freedom is the measure of the extent to which people are free to work, produce, consume and invest in the way they choose. According to the Washington-based Heritage Foundation, a research and educational institution, by 2019, Uganda’s economic freedom score was 59.7, better than the Sub-Saharan average of 54.2 but lower than the world average of 60.8. Whereas Sub-Saharan Africa is overall Mostly Unfree, Uganda is ranked as Moderately Free. Of the above-cited Countries, only Botswana performs better than Uganda on this score.
There are some other major causes of business failure which are beyond market conditions. They arise from other factors. There is a high possibility that many Ugandan businesses are born out of absolute necessity as opposed to the passion of their proprietors. Sometimes it out of pressure to grow incomes, for most of the population, while at the same time, people may lack sufficient capital to invest in ventures they are passionate about and skilled for. Therefore, most investment ventures are started out of need for survival in addition to capital inadequacies.
This state of affairs builds pressure on business start-ups mainly on two fronts; the founders exceedingly prioritize day-to-day sales above strategic and long-term goals such as building a reliable human resource team to drive the business growth and sustainability, stable clientele base and other related foundations, since the primary objective of the business is to provide a means of daily livelihood for its proprietors.
Therefore, the above scenario is fertile ground for denying the business a chance to grow by continually taking out all the monies made and failing to build capital for the business. Against such circumstances, investments are highly likely to fail.
Breaking barriers at Vaito is attributed to excellent bookkeeping, managing tax records and also following local business regulations. In the first financial year of existence 2019/2020, Vaito recorded a turnover of 57,205,000/=. In the second year, there was a decrease in the turnover to 51,247,104/= at a time when Covid-19 affected almost all businesses in the Country Vaito inclusive.
In the financial year 2021-2022, at a time when lockdowns were being minimized by Vaccinations, there was an increase from 51,247,104/= to 82,158,440/= turnover. From these figures, you can see a child who’s progressing well without missing any step of growth and therefore projecting last year’s financial figures above, 100,000,000/=.
It’s an incredible milestone for Vaito, as we celebrate 4 years of existence since 2019. Throughout this journey, we’ve been dedicated to empowering brands to achieve visibility in any way possible. Over the past four years, we’ve had the privilege of partnering with incredible brands from various industries. Together, we’ve crafted success stories, driven growth, and transformed businesses, and we have witnessed their break through one by one, said Mr. Asaba James, head of Marketing and Sales at Vaito”
He also added that Vaito employs about 20 people, both permanent and casual workers of which 90% are youths.
He further explained that, “as we celebrate #Vaitoat4, we’re excited to announce some groundbreaking developments and partnerships that will further enhance your brand’s visibility and impact. The best is yet to come, and we’re happy to have you by our side on this journey”.
In his concluding remarks, Asaba James highlighted that together as a team at Vaito, we want to extend our sincere gratitude to all our cherished clients for believing in us and being an integral part of Vaito’s journey. Together we shall continue to be creative, innovative, dependable and reliable to serve you better.