Gov't to Review US $ 100,000 Security Deposit for Investors

940 Views Kampala, Uganda

In short
Prossy Mbabazi, the Rubanda Woman Member of Parliament, claimed that foreign traders have displaced Ugandans from shops since can they pay rent in dollars. She says although they employ Ugandans, there is massive exploitation of Ugandan workers who need to be protected.

Government is set to review the USD $100,000 security deposit paid by foreign nationals seeking to trade in Uganda. This is part of the proposals tabled in parliament by the Trade Minister; Amelia Kyambadde in any attempt to reduce the involvement of foreigners in petty trade.

 
According to Kyambadde, the USD $100,000 threshold is too low and needs to be reviewed. She said reviewing the threshold is one of the short term measures government is taking to stop foreigners from getting involved in petty trade.
 
 
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She also called for the fast tracking of the local content bill, which will guarantee Ugandans certain jobs and encourage innovation and development. Kyambadde disclosed that government is considering ring-fencing wholesale and retail enterprises to protect indigenous traders from unnecessary competition.



 
She also said government is currently drafting the Distribution and retail trade policies. Agnes Amede, the Pallisa Woman MP, says the issue of petty traders is multifaceted and should be looked at from that angle. 



She states that foreign traders are way too much, with many of them taking up jobs that would otherwise go to Ugandan citizens.
 
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Prossy Mbabazi, the Rubanda Woman Member of Parliament, claimed that foreign traders have displaced Ugandans from shops since can they pay rent in dollars. She says although they employ Ugandans, there is massive exploitation of Ugandan workers who need to be protected.



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Although there is no official data on the number of Chinese traders in Kampala, it is estimated that there are between 10,000 and 50,000 petty Chinese traders.

 
Their presence in retail business in the country sparked a strike by traders operating under Nakasero Hardware Businessmen Association in downtown Kampala.
 
 
 
The strike paralyzed business along Snay Bin Amir Rise, Sikh Street, Market square and Dastur Street in Kampala, all around Nakasero. The area has a high concentration of Chinese and Indian nationals involved in retail trade.

 

About the author

Alex Otto
“Journalism that changes lives is my goal,” Alex Otto has said on more than one occasion. That is his career’s guiding principle. Has been since he was a radio journalist in the northern Ugandan town of Gulu in 2009.

Otto passionately believes his journalism should bring to the fore the voices of the voiceless like the shooting victims of Apaa. Otto tries in his journalism to ask tough questions to those in positions of authority.

Based in the Kampala bureau, Otto is especially interested in covering agriculture, politics, education, human rights, crime, environment and business. He has reported intensively on the post-conflict situation in northern Uganda.

A URN staff member since 2014, Otto previously worked with The Observer Newspaper from 2012 to 2013 and later the Institute for War and Peace Reporting IWPR based in Gulu.

He was the URN Gulu bureau chief 2014-2016.