The bill, which is before the Finance Committee of parliament, seeks to impose local content obligations on persons using public money or Uganda’s natural resources or carrying out activity requiring a license, to priorities Ugandans in Public Procurement, ensure skills and technology transfer and provide for development of local content plans.
Companies and persons
using public money and resources will not be allowed to employ foreign nationals
should the National Local Content Bill 2019 pass in its current form.
The bill, which is before the Finance
Committee of parliament, seeks to impose local content obligations on
persons using public money or Uganda’s natural resources or carrying out activity
requiring a license, to priorities Ugandans in Public Procurement, ensure
skills and technology transfer and provide for development of local content
The bill also seeks to promote Ugandan goods, services and
industrialists. The proposed legislation also seeks to provide for the
establishment of a national Local Content Committee and to maximize
value-addition and job creation using local expertise, goods and services among
The bill tabled by Patrick Nsamba Oshabe, the Kassanda North
MP proposes strong measures against employing foreigners especially in public
works like construction, alteration, installations, or
repair work done under contract and paid out of public funds.
According to the proposal, a foreigner can only be employed
where a Ugandan doesn’t meet the requirements for the job following clearance
from a Government department. The bill also proposes a succession plan for
every position not held by a Ugandan.
“The department may grant authorization for the employment of
a non-citizen where he or she is satisfied that every reasonable effort
was made to find a suitable qualified Uganda citizen and none exists,” part of
the bill reads.
The bill also proposes that for every position held by a
foreigner, it shall be deputized by a Ugandan. The bill also proposes that 80
per cent of the employees in companies using public money and resources must be
Ugandans and that the salary difference between non-Ugandans and Ugandans shouldn’t
exceed 10 percent.
The Finance Committee Chairperson, Henry Musasizi, says the Local
Content bill once approved, will build the capacity of Ugandans, which has been
a major cry, but also ensure that 80% of the company budget for wages goes to
Ugandans among other things.
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Also, the bill restricts the grant or renewal and issuance of
work permits to foreigners unless a Government department confirms that no
Ugandan is suitable for the position for which the foreigner seeks to work in.
The bill also proposes 40% subcontracting for Ugandans.
Patrick Nsamba Oshabe, the mover of the bill, says major
projects in the country that form public works barely employ Ugandans despite
the fact there are qualified individuals.
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Persons and companies who fail to meet the requirements will
be blacklisted for five years. The bill also lists over 124 Goods and
services that can only exclusively be supplied by Ugandans under public
procurement including health related services, tour and travel,
recreational and cultural services, financial services like money lending
and communication services among others.