Members of Parliament sitting on the Committee on Equal Opportunities have tabled a report detailing the influx of foreign ‘investors’ who are involved in petty retail trade at the expense of Ugandans.
The report was tabled on the floor of Parliament last week and awaits debate this week in the presence of the inline ministers of Internal Affairs, Trade and Industry and Gender.
While referring to the petty foreign investors as aliens, the MPs in their report said that the proliferation of aliens into petty and retail trade in Uganda today is a threat to the economic space and livelihoods of citizens.
Subsequently, the committee report made several recommendations that government needs to consider urgently to curb the influx of such petty foreign investors whom the MPs referred to as Aliens.
Among the measures recommended by the committee report include; resourcing and bolstering the capacity of the Directorate of Citizenship and immigration Control, increasing synergies and interoperability between and among the various stakeholders involved ln issuance of work permits, licensing of businesses and security surveillance.
The MPs want Investment Code Act amended to bar foreign investors to engage in retail business and also provide for mandatory local content shareholding of at least 10% in foreign investments in Uganda.
“The Committee recommends that the Executive initiates targeted policy and legal reforms in immigration, investment and business licensing processes to ring-fence certain sectors and trades exclusively for Ugandans. These reforms should also include strengthening relevant regulations,” the report says.
Section 13 (1) Investment Code Act, provides that an investor may engage in any type of business enterprise.
Furthermore, Section 10(5) states that foreign investor who is intending to engage in trade only shall not be required to comply with subsection (1) but shall incorporate a company with the Registrar General as is required by law; and deposit a sum of $100,000 at the Bank of Uganda, which shall be specifically used for importation or direct purchase of goods for the business. MPs now want this deposit increased to $200,000.
“The Committee recommends that the Minister of Trade immediately considers amending the Investment Code Act be amended to inter-alia double the said deposit from US$100,000 to US$200,000 to strengthen commitment by prospective foreign investors to the objectives of their Incenses and reform the conditions governing its use by the investor,” the report says.
In a bid to streamline the engagement of aliens in business, the Committee also noted that pegging restrictions to renting of premises by aliens would be a strategic initiative.
