The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The National Local Content Bill 2019, which seeks to promote the use of local expertise, financing and goods and services in projects involving public funds has drawn the attention of the Partners Development Group (PDG).
The group comprises representatives from the European Union (EU), the United States of America (USA), United Kingdom, South Korea, Norway, Iceland, Japan, International Monetary Fund (IMF), World Bank and the United Nations (UN). Parliament approved the National Local Content Bill 2019 on May 21st, 2020 and sent it to president, Yoweri Museveni for accent before it finally becomes a law.
However, Museveni returned the bill asking parliament to reconsider among others the requirement for projects funded through loans to comply with local content obligations. Museveni says this isn’t practical since each development partner has its own policies and guidance that are negotiated before any project starts.
Museveni also said the bill seeks to take over the role of the Solicitor General by introducing new auditing procedures. He said the provision requiring projects to prioritize Uganda’s goods and services during procurement contradicts the East African Community Protocol on free movement of goods and Public Procurement and Disposal of Public Assets Act, which provides for international competitive bidding without discrimination.
The Partners Development Group-PDG has asked parliament to go slow on the bill. The matter came up during a meeting between the Speaker of Parliament, Rebecca Kadaga and PDG representatives on electoral reforms. The Swedish Ambassador to Uganda, Per Lindgärde, said Swedish investors have expressed concern on the new legislation. He said the new law will instead chase away investors.
However, in her response, Kadaga stood firm of the issue of local content, saying there are many things that can be sourced locally. She said that while Uganda picks loans, Ugandans are also entitled to participate in the execution of the projects.
Anna Merrified, the European Union Acting Head of Delegation, said every ambassador has interest in attracting foreign investors to Uganda but warned of the risk of pitying local producers against foreign producers.
She said foreign investors are needed to develop modern technology, saying any legislation that seeks to limit the investors will be a deterrent for them.
Kadaga said despite the fact that Uganda needs technology but some investors have been doing ridiculous things like importing eggs and beef from abroad.
Elin Ostebo Johansen, the Norwegian Ambassador to Uganda, who said she has expertise in international trade asked Parliament to work carefully on the bill and see where the balance is saying it is a serious issue.
Patrick Oshabe Nsamba, the Kassanda North MP and promoter of the bill told journalists at a separate media briefing in parliament that the mafia is misguiding the President on the bill for their selfish interest. He says that they are going to reconsider the bill and will not allow changes to certain aspects.
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