A push for regional policy on local content

Dec 05, 2016

"We need national policies to emphasize local content and to harmonise regional policy to create regional competition.

The private sector and civil society have called on the East African Community (EAC) member states to adopt a regional policy on local content to boost the economic development of the region.

They argue that if a regional policy on local content is adopted, it would protect the region from exploitation, promote employment, improve people's welfare and develop skills.

While making a presentation on enhancing food security and agricultural value chains in the region, the executive secretary of Kilimo Trust, Prof. Nuhu Hatibu said individual states have not done enough to protect its economies from exploitation.

"We need national policies to emphasize local content and to harmonise regional policy to create regional competition. We are killing ourselves because we do not give our people chance to develop their skills," Hatibu noted.

"The Chinese started with shoddy works but made sure that everything is done by their people within their means to develop the skills we see today. Let us do bad road ourselves; it helps to create employment, develop skills and promote economic development."

The Public Procurement and Disposal of Public Asset Authority (PPDA) Corporate Affairs Director, Bradford Ochieng said about 99% of the contracts in Uganda are awarded to local companies.

"Any company registered in Uganda is considered a local company. We want to see how we can support local companies through skills, knowledge development, and value addition to make sure they compete with foreign companies for bigger jobs," he said.

He said high value contracts currently go to foreign companies but also emphasize local content on the side of raw materials for Ugandans to benefit.

"Those foreign companies without local content plan in their projects lose out," Ochieng said.

Ochieng said a policy framework can allow free exchange of labour depending on the level of expertise from each country, thus creating more jobs.

The Permanent Secretary to the EAC ministry, Edith Nsanja Mwanje, said they want to ensure that the regional market opens up.

Mwanje said they are working out ways of buying local or East African goods in the procurements that they undertake.

"We are coming up with proposals which we think the EAC Secretary General can implement," she said.

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