Parliament Passes National Local Content Bill

Parliament has passed the National Local Content Bill, 2022 intended to foster the promotion of local content in all but the oil, gas and petroleum sector.

The new law will impose local content obligations on persons/entities using public money or carrying on an activity requiring a license to prioritize Ugandan citizens or Ugandan companies in public procurement.

The House on Tuesday reconsidered the National Local Content Bill, 2022 that was returned by the President on 18th August 2020.

The Bill which lapsed with the 10th Parliament was re-introduced and has been processed as a new bill with new clauses.

Hon. Keefa Kiwanuka presented the Report from the Committee on Finance, Planning, and Economic Development on the National Local Content Bill 2022.

Thereafter, the Bill was read for the third time and passed.

Hon Patrick Nsamba presented the National Local Content Bill, 2022 for the Second reading. This Bill is a Private member’s Bill.

The National Local Content Bill was read for the first time as National Local Content Bill 2019, on the 30th of January 2019. It was passed by Parliament on the 20th of May 2020.

However, on the 20th of August 2020 and in accordance with Rule 142 of the Rules of Procedure of Parliament, the President returned the Bill for reconsideration on certain matters.

The president had objections to the imposition of local content obligations on negotiated funding which comes in either as grants, donations, or loans.

This is because, as he said in his letter, “…development partners incorporate terms and conditions of their choice”.

Among others, the bill seeks to impose local content obligations on a person using public money or utilizing Uganda’s natural resources or carrying out an activity requiring a license to prioritize Ugandan citizens and resident companies owned by citizens in public procurement.

Key among them is section 4 of the bill that tasks a local content entity to give preference to goods that are manufactured in Uganda as well as services that are provided by Ugandan entities.

MPs agreed that government integrates the development of cooperatives in its local content promotion strategy and Buy Uganda Build Uganda (BUBU) Policy.

Hon. Patrick Nsamba (Kassanda County North MP) who introduced the bill said that it will ensure that Ugandan products are consumed and that local firms are involved in public procurements.