President Museveni Sends Back National Local Content Bill to Parliament

President Yoweri Museveni has sent the National Local Content Bill, 2022 back to Parliament for a second look.

This bill aims to boost the Ugandan economy by using more things made locally. It has been in the works for a while and is seen as a way to help Uganda. However, it has caused arguments, with some people saying it could make things unfair for Ugandan companies.

In a letter to Parliament, the President mentioned changes he thinks should be made.

He said that Clause 1(g) of the Bill needs to be changed. This clause is about letting the Minister of Trade, Industry, and Cooperatives negotiate local content in agreements as much as possible. The current clause says that the Local Content Act should apply to companies funded through public borrowing or other similar arrangements.

But the President said this isn’t practical because different development partners have their own rules and talks before starting projects.

The President also wants Clause 7 of the Bill to be changed.

He wants locally made goods and services to be part of the East African Community Market. Right now, the bill only talks about giving priority to goods and services already available in the market.

The President thinks adding this change is important so that Ugandan companies can fairly compete for contracts in the EAC market.

Another issue is Clause 11 of the Bill. This clause wants a minimum of 30 percent of public works to be subcontracted. But the President thinks this isn’t realistic. Instead, he thinks it’s better to focus on giving Ugandan companies a good chance to compete for contracts.

Lastly, the President also had concerns about the Competition Bill, 2023. He wants changes in Clause 4, which sets up the Competition and Consumer Protection Commission to run the bill. The President thinks the bill should be run by the Ministry of Trade and not the new commission. He explained that the government has stopped combining things, and having the commission would cost money from the Consolidated Fund.

Thomas Tayebwa the Deputy Speaker of Parliament, said they will look at the President’s suggestions and do what’s needed.

The president also returned the Competition Bill, 2023 calling for amendment of clause 4 which establishes the Competition and Consumer Protection Commission to administer the bill.