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The Hon. Minister of Finance in charge Planning Hon. Amos Lugoloobi requested that lawmakers conduct extensive research on Local Content Bill to prove that the bill’s current form does not cover procurement.
The Private Member’s Bill seeks to impose local content obligations on a person using public money or utilizing Uganda’s natural resources or carrying on an activity requiring a license.
It also aims at ensuring that Ugandan citizens, residents, and businesses are given priority in public purchasing.
It also seeks technology transfer and skills acquisition to Ugandans.
Lugoloobi stated, “What is in the Bill isn’t comprehensive enough to cover local content.”
He made these remarks while appearing before the Finance Committee to present the Ministry’s views on the Bill on 09 August 2022.
Lugoloobi advised MPs to avoid passing a provision that prioritizes Ugandan goods or services during procurement, claiming that it is against the East African Community Protocol regarding free movement of goods.
“The protocol is about free movement of goods and services and you cannot legislate against it. We send legislators from here to the East African Legislative Assembly and now here we are with a legislation which ties us,” he said.
He suggested that the matter be left at policy-level until further consultations with Minister for East African Community Affairs.
“We should not escalate this to a level where we legislate for it, we can quietly manage it. Making it a law, will be a very big contradiction and very soon it will be challenged in court,” he said.
Hon. However, Hon. Kiwanuka Keefa, the Committee Chairperson, asked why Uganda shouldn’t prioritise its goods or services during procurement when other East African Community countries (EAC) are prioritising theirs.
He stated that Tanzania has a local contents law, which makes it difficult to procure goods and services from other countries even though they are within the EAC.
“Even in Kenya, they are developing the Local Content Bill. We are talking about goods which are produced in Uganda and according to the Investment Code that allows goods from across East African Community,” said Keefa Kiwanuka.
Hon. Jane Pacuto Avur stated that each country in EAC had the right to legislate on matters relating to procurement of goods or services. She said that they were left to decide and manage.
“Coming up with this law will not have an impact on the EAC Protocol,” said Avur.
Hon. Muhammad Muwanga Kivumbi (NUP in Butambala County), proposed incorporation the Investment Code into the Bill.
“Other than total rejection of the clause, we can see how we can borrow that provision which defines a local investor and address the concerns of the minister,” Muwanga Kivumbi said.
Distributed by APO Group for Parliament of the Republic of Uganda
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Source: african.business