Passed Local Content Bill Imposes Obligations on Gov’t Contracts to Prioritize Ugandan Companies

Courtesy photo of Trade Minister Amelia Kyambadde, Amina Hersi touring the construction site of Atiak Sugar factory in 2018

Parliament has finally passed the National Local Content Bill, 2019 that imposes local content obligations on all government contracts, licences and public money to prioritize Ugandan goods; citizens and residents and companies among other localization measures.

If assented to by the President, the law would require firms to employ 100% Ugandans for unskilled labour, and 60% for skilled labour.

The Bill hit a snag in February 2019 after the Committee on Legal and Parliamentary Affairs that was scrutinizing it declined to continue processing it following concerns that certain sections of the Bill contravened the East African Community protocols.

The Bill was tabled by Kassanda North MP, Patrick Nsamba and seconded by his Bukoto South counterpart Muyanja Mbabaali.

It seeks to guarantee priority and exclusive use of locally manufactured goods and services in all projects where the government is a party.

It will become law once President Yoweri Museveni assents.

“The COVID-19 pandemic has shown that we have the capacity to grow import substitution by local innovations and adaptations. I urge our entrepreneurs to up their game and ensure we produce goods and services of the highest quality,” Speaker Rebecca Kadaga said upon the passing of the bill.

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