Revise policy on liberalisation, says Kyambadde

Mar 09, 2015

Uganda''s economy is over- liberalized which has created an avenue for abuse by shady investors, minister of trade and Industry, Amelia Kyambadde has said.

By Nicholas Kajoba

Uganda's economy is over- liberalized which has created an avenue for abuse by shady investors, minister of trade and Industry, Amelia Kyambadde has said.

She said that there is need to revise the policy on liberalization in order to create proper laws on how to invest in the country.

Kyambadde was speaking during the launch of the book "Opportunities and challenges of the business Environment." A situational Analysis authored by Makerere University Business School (MUBS) Dons at Hotel Africana, Kampala on Saturday. The book was supported by funding from ICBE project, Trust Africa.

Without naming names, Kyambadde, alleged that some investors once they make profits they do not re-invest in Uganda.

"Some of the investors are given incentives such as free land to set up their industries. But once they start earning profits they do not re-invest here," she said.

Kyambadde said that some investors have started dealing in small business like selling of electrical appliances and clothes, thus competing directly with the indigenous business people.

She counseled local traders not to worry about the influx of foreign investors because government would protect the interests of the traders.

"Most traders have launched complains about the investors especially those with shops in Kampala city arcades. But I assure you that we shall work together to ensure that you remain in the business market," she said.

The former Chief Executive Officer, Uganda Investment Authority (UIA), Maggie Kigozi said that local investors should also be entitled to some of incentives that are given to their counterparts.

“As local investors we all face the same challenges. But we need also to get some of the incentives like free land and one year tax exemption that are given to foreign investors,” she said.

She said that as local industrialists, they face problems of power outage and high interest rates.

Makerere University Business School (MUBS) principal, Prof. Waswa Balunywa said that government needs to strengthen policies that protect the interests of the local investors.