Gov't moves to fight quack investors

Cabinet has endorsed a new Investment Code to block quack investors flocking into Uganda.

The State Minster for Investment, Evelyn Anite told New Vision that the code that was endorsed by cabinet last month will soon table in Parliament.

"To curb quack investors, government has increased the threshold for foreign investment licenses from sh360m to sh900m," Anite said.

The investment threshold is the amount of money an investor must have on his account to be categorised among investors. In many countries, the threshold is very high to restrict quacks.

Anite added that the code will also empower Uganda Investment Authority (UIA) to perform its supervisory roles. She said that it aims at making UIA a one stop center for investors to cut down chances of corruption.

"There are foreign investors who go straight to Kampala Capital City Authority (KCCA) for work permits and the National Environment Management Authority (NEMA), skipping UIA," she said.

Anite revealed that the threshold for local investors has also gone up from sh180m to sh360m. She said government will offer potential investors with free land.

The change in code comes in the wake of protests in the city center by local traders who accuse foreign investors of doing petty trade. The traders say foreigners have kicked them out of business.  

The minister denied accusations that her ministry is doing nothing as foreign investors sexually harass their female employees. Two cases of sexual harassment of female employees by their foreign bosses have been reported in the media recently