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

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.

Audio 3

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.