By Caroline Nassuuna
Communications Officer - ICPAU
Night sets in with the setting sun. Most people consider this their resting time; nevertheless, this does not mean the rest of the world has come to a standstill, waiting for daytime. Some entities and persons work across time zones. World over, several enterprises operate and sell at night.
The night economy is one of the drivers of generating income and opportunities, particularly for SMEs, with multiple formal and informal business operations conducted between 6 pm and 6 am. These include parties, music and drama, festivals, food and alcohol, small night businesses, big size and commercial night businesses, transport, storage, agriculture, fishing, and social care such as human health, evening classes, security operations, among others.
While speaking at the 12th CPA Economic Forum happening at the Imperial Resort Beach Hotel, from 3 - 5 July 2024, Dr Fred Muhumuza, Director Economic Forum at Makerere University Business School, examined the various benefits of the nighttime economy.
“Night time economy offers employment and consumer spending opportunities that boost the economy from both the supply and demand sides. Shops and services with longer opening hours help to alleviate daytime congestion in urban spaces,” said Dr Muhumuza.
Dr Muhumuza further remarked that at night people want to be comfortable and safe. This makes them ready to spend their money, no matter the cost.
He further addressed the substantial cost of the nighttime economy, highlighting the occasional environmental and community challenges.
“A high degree of night-time economy comes with an environmental impact due to increased traffic and activity throughout the day,” commented Dr Muhumuza.
As cities become more densely populated, bars and clubs will be built near residential areas, contributing to air and light pollution, nuisance behaviour, and litter. High crime rates, not to mention alcohol-related hospital admissions, put the safety of both people and their property at risk. All these put additional pressure on police and emergency services.
However, to address the growing concerns of the night time economy, Dr Muhumuza called upon accounting professionals to help people in the informal sector in the night time economy by addressing information sharing and infrastructure contextualisation.
“Night time economy and informalities cannot be separated, but the government should prioritise infrastructure development and regulation. There is also a need to promote incentives for large companies in the form of lower tariffs for those operating at night,” noted Dr Muhumuza.
It is also necessary for the government to adopt the 24/7 working format to increase both efficiency and employment.
The country is steadily embracing the nighttime economy in the formal sector through the adoption of evening teaching. Therefore, it is imperative for the government to bolster ordinances and legislation for this sector, although this can only be done if the government has analysed and understood how this economy operates.
