Latest Posts

At Last! Parliament Approves National Local Content Bill

The Parliament of Uganda has approved the National Local Content Bill, 2022. The private member’s bill by Kassanda North MP, Patrick Nsamba Oshabe was passed last week.

The bill was first tabled before parliament in January 2019 during the 10th parliament, processed, and eventually passed. Its objective was to impose local content obligations on persons or entities using public money or utilizing Uganda’s natural resources or carrying out activities requiring a licensee; to prioritize Ugandan citizens, Ugandan and resident companies in public procurement.

Nsamba then said that the bill is aimed at increasing the consumption of local products and increasing the participation of local firms in domestic trade. He added that the lack of protection of local manufacturers and the non-imposition of obligations on foreign investors to use Ugandan labour and the non-implementation of the Buy Uganda Build Uganda policy, exposed Ugandan manufacturers to unfair competition.

However, President Yoweri Museveni declined to assent to it and returned it to parliament on August 18, 2020, citing provisions that would put Uganda on a parallel course with the international community.

Museveni among others cited section 4 of the bill that tasked a local content entity to give preference to goods that are manufactured in Uganda as well as services that are provided by Ugandan entities.

“The bill is in conflict with the East African Monetary Union. Under Article 13 of the Customs Union Protocol, the EAC partner states agreed to remove all existing non-tariff barriers to trade and not to impose any new ones,” said Museveni in his letter to the speaker.

The president also expressed reservations about enacting a Local Content department under the ministry for Finance, in a bid to implement the law.

“It is not feasible for one department to approve local content plans from bidders, for each individual procurement for the whole country,” the president further stated in his letter.

The bill was re-tabled in the 11th parliament and considered again by the parliamentary finance committee. In a report presented to parliament, Keffa Kiwanuka, the finance committee chairperson recommended to MPs that the oil, gas, and petroleum sector should be excluded from the implementation of the law since it is unique.

He said that this particular sector is characterized by long years of capital expenditure without realizing a profit, cost monitoring activities, and budget activities which require a stable legal regime to ensure consistency, predictability, and stability.

Kiwanuka also told parliament that the government had already incorporated provisions of local content in the different laws concerning the oil, gas, and petroleum sector. Parliament adopted the committee recommendation after the minister of state for Finance, Henry Musasizi, and speaker Anita Among emphasized that the law should not contradict the already existing laws.

Parliament also agreed to designate the functions of the department responsible for local content as the department for procurement policy and management under the ministry of Finance.

The role of developing and applying local content plans is to be left to the various procurement and disposal units under ministries, departments, and agencies to ensure that efficiency in the procurement process is not undermined. MPs also agreed that government integrates the development of cooperatives in its local content promotion strategy and the Buy Uganda Build Uganda (BUBU) policy.

Nsamba said that the law will go a long way in ensuring Ugandan products are consumed and the involvement of local firms. Nsamba says that the country loses a lot of money that is repatriated by foreign investors and companies which are dominating the development contracts.

Loading

Don't Miss

EXPOSED! Muyenga Tycoon’s Maid Cited In Land Wrangle

In recent days, Muyenga, Y2K Zone a push Kampala suburb,

Parliament Orders Closure Of Fuelex Petrol Stations For Adulterating Fuel

The Parliamentary Committee on Trade And Industry led by Mbarara

Big Story: Parliament Probes UETCL Bosses Over Corruption, Mismanagement & Controversial UGX 28Billion Compensation Deal

Members of Parliament on the Committee on Environment and Natural

‘Back Off Buganda Land’ Kabaka Mutebi Castigates People Pushing For Abolition Of Mailo Land Tenure System

The Kabaka of Buganda Kingdom Ronald Muwenda Mutebi II has

Big Story: IGG Probes Over Shs1bn Ubos Fraud

The Inspector General of Government (IGG) is investigating top officials

EXPLOSIVE: How Speaker Kadaga & Confidant Hon. Okupa Spent Over US $764,000 (Shs2.8 BN) In-less Than 2 Years In Travels Abroad

Since taking office as Deputy Speaker of Parliament way back

Ham Vs DTB Appeal: Bank Of Uganda Runs Out Of Case, Leaves DTB To Carry Its Own Cross

Bank of Uganda has officially quit the case involving city

Amnesty International Joins Push To Free Presidential Runner Robert Kyagulanyi

The Ugandan authorities must immediately lift the police and military

Exporters Call For Strong Action Against EAC States’ Trade Barriers

Manufacturers have called on the government to impose tough measures

Big Story: How KCCA Officials Messed Up Youth Fund Programs, Stole Billions of Gov’t Funds In Shoddy Deals

Kampala: If there is any government Authority that frustrating President

I Predict Museveni, NRM Victory In 2021 Elections

By Faruk Kirunda Kampala: As we dive into the high

Crisis: Lord Mayor Lukwago Defies Court Order, Appoints Balondemu As Chairman K’la District Land Board

Veteran lawyer Hajji Elias Lukwago, who is the Kampala city

Scandal: Stanbic Bank Bosses Allegedly Steal Borrowers’ Land Titles, Mortgage Them To Dfcu Bank

Several officials at Stanbic Bank are in deep trouble after

Scandal: KCCA Officials On Spot For Blowing Shs 8Bn Under The Guise Of Renovating Old Tax Park

Several officials at the Kampala Capital City Authority (KCCA), are

Covid-19 Crisis: Ugandan Students Expected To Sit For UNEB Exams In March 2021

All indications are that a dead year will not be

BoU To Appeal In Supreme Court Over Trashed Crane Bank Case

The Bank of Uganda (BOU) has said it will be

Shame As Top Police Boss Is Convicted Of Car Theft, Ordered To Pay Over Shs282M

Untold shame has engulfed the Uganda Police a senior officer

Just In! Energy Mafias Rock Parliament As Patriotic Young Turks Question AIGP Akullo’s Involvement In Min. Energy Corruption

Panic has rocked Parliament as renowned Parliamentarian and Lawyer Hon.

Energy Mafias Debunked Part III: How Werikhe, Turyagyenda Corruptly Swindled Shs15 Bn For 3 Electricity Distribution Projects In Acholi, Bunyoro & Kiruhura

FUNDING THE COUP THROUGH ENERGY AND MINERALS CORRUPTION By the

Just In: Top Energy Officials Fired On Presidential Orders Over Massive Theft Of Electricity Distribution Funds

By Our Reporter Kampala: Two senior officials of Rural Electrification

Salary Scam Hits KCCA AS 29bn Is Paid To Ghost Workers

After Eng Andrew Kitata took over as the acting Executive

Appointed & Approved: Kampala District Land Board On Cloud 9 As Concerned Citizen Withdraws Case Blocking Their Approval

The Kampala District Land Board has been duly approved and

Bishop Twinomujuni,Willis Bashasha Force Church Public Relations Officer To Resign

The bishop of west Ankole diocese yesterday forced the diocesan