Ssemakula earns millions from making paper bags

For 19 years, Michael Ssemakula has been making paper bags for cash. He spotted the business opportunity way back in 2000 when he eventually founded his own company named Yellow Printers.
With no money to continue with school, Mr Ssemakula from Buwere village in Mawokota, moved to Kampala to forge a livelihood.

He joined his uncle who was then making envelopes using local methods at Nasser Road as an errand boy. Here, he carried materials and delivered finished products to clients. While on duty, he mastered the art of putting these envelopes together.
“I always critically looked at these people and learnt what they would do,”Mr Ssemakula whose business is now worth Shs6 million recounts.
STARTING OUT
In the year 2000, at the age of 28, Ssemakula started his own business and named it: Yellow Printers. With only Shs300,000 he rented a small place, bought a pair of scissors, binding clips and glue.
His dream was to expand from producing envelopes alone venture into corporate paper bags.
“I developed the skills myself over time trying to copy from imported bags,” Mr Ssemakula said. And his production capital depended on customers who would pay deposits. That is the money he would use to buy raw materials.
“I drew inspiration from the bags so after two months; I produced my first paper bag,” says Mr Ssemakula who now bags an average of Shs150,000 in profits daily.
PRODUCTS
Mr Ssemakula makes hand-made paper bags in different colours and sizes.
“They are made out of khaki and art board papers that are softly laminated,” he says.
He has since widened the scope of envelopes he makes.

“I also make envelopes of all sizes including clinical or medical envelopes. I have started making Pizza boxes and customized gift boxes that are mainly ordered by clients going for introduction ceremonies. I also do other printing jobs,” Mr Ssemakula says.
FINDING MARKET
Some people think of these products are imported. So, sometimes it is hard to convince such customers to buy his products.
Aware of these challenges, Mr Ssemakula had a strategy that involved hiring marketing executives to help him approach the corporate market which is his target market.
“I planned and always plan to be exceptional. But there are people in the same business who wait for clients from here. They do not explore the market,” Mr Ssemakula said, adding: “I make unique products like small branded boxes and this helps me expand my market base.
CHALLENGES
The rising cost of raw materials is a put-off. “Initially, we used to buy paper from Jinja and Kenya. But now we mainly buy imported paper from China. This raises prices which make our customers very uncomfortable,” Mr Ssemakula notes.
Sometimes the good materials are off- the- market because of importation challenges so we lose customers.

Some clients do not complete their payments, a situation which holds up operational cash.
“We have unfaithful clients who pay half the money then take the products but do not pay in time or even never return to pay the outstanding balance.”
High rent costs also eat into his profit.

“The high rent charges at our buildings on Nasser Road reduce our profit margins.”
We have huge orders that almost fail us to beat deadlines and it is a big challenge that sometimes we have to outsource.

FUTURE PROSPECTS
He hopes to move to a bigger and respectable working space to attract more corporate clients.
Acquiring modern machinery to fold, cut and make the bags better is on his wish list. This, he believes, will improve his efficiency.
“It will also help me reduce the work load because no day goes by without making these bags as I always have an order and work piles up.”
Mr Ssemakula also wants to reduce unemployed Ugandans by offering them jobs.
“There are many people who are not employed. I want to expand and employ many youth.”