The State House Investors Protection Unit (SHIPU) convened a stakeholders’ consultation meeting regarding the minimum capital requirements for investment licensing in Uganda.
During today’s meeting at the State House Investors Protection Unit Offices in Kampala, Colonel Edith Nakalema, the unit head, highlighted that SHIPU had identified a gap in having a clear investment policy after receiving significant concerns from both the business community and government agencies.
“ALP Advocates aided us, the State House Investors Protection Unit, in consolidating the thoughts and concerns gathered from investors and traders at all levels,” Colonel Nakalema stated.
“The primary objective of this engagement is to review and deliberate upon the proposed policy paper on minimum capital requirements for investment licensing in Uganda. Our main task is to coordinate with all government ministries, agencies, departments, and the private sector to ensure a thriving investment climate in our country,” she added.
Furthermore, she explained that the meeting provided a platform for reinforcing technical exchange of ideas among technocrats to explore ways of enhancing the investment and business environment in the country.
Dr. Ezra Muhumuza, the Executive Director of Uganda Manufacturers Association (UMA), advocated for a review of the current investment regime, stating that it does not favor domestic investors.
“The Uganda Investment Authority (UIA) should revisit and establish a regime with a comparative advantage for Ugandans to facilitate our prosperity,” he emphasized.
Dr. Henry Onoria, a Knowledge Partner at ALP Advocates, presented a paper on the Uganda Investment Licensing policy (UILP).
He noted that the policy, anchored under the Investment Code Act (CA 2019), focuses on aspects such as Minimum Investment Capital Requirements (MICR), investment coordination, registration, and incentives.
“The policy is deemed a significant tool in fostering investments in the country, both domestic and foreign, as it heavily influences the business establishment process,” Dr. Onoria highlighted.
“The policy paper proposes policy alternatives, including multi-tiered MCIR, especially for domestic investments. The suggested tiers are USD 30,000 and USD 50,000 to promote inclusivity, particularly for micro, small, and medium enterprises, which constitute the majority of domestic investment capabilities.”
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