By Sarah Achen Kibisi
Legislators sitting on Public Accounts Committee- Central Government have called for an immediate action by government to curtail the fast mushrooming China Town Outlets in the City.
While interfacing meeting officials from Ministry of Trade, Industry and Cooperatives led by the Permanent Secretary, Ms Lynette Bangonza at parliament, the Chairperson of the Committee Hon. Patrick Nsamba wondered if government is regulating the operations to protect Ugandans from unfair competition especially dealing in similar retail business.
“We see China Town outlets expanding fast, have you undertaken its impact on the local businesses owned by Ugandans. We want to understand if it’s fair for them to engage in retail business,” said Nsamba.
Kyotera District Woman MP, Hon. Fortunate Nantongo, questioned the public perception that China Town stores offer products at lower prices than other retailers, adding that the perception may be misleading and could affect local businesses even where the difference in prices is small.
Nsamba explained that the challenge is that foreign investors access to cheaper credit than Ugandans giving them a higher advantage of remaining in business while Ugandans may be kicked out.
“As a committee, we are not against the Chinese from trading in Uganda but we want you to direct them not to trade in similar goods like the ones Ugandans are trading in because they have access to credit than our people,” he noted.
In response to the concerns of the lawmakers, the Ministry’s Commissioner for Internal Trade, Zackay Kalega assured the MPs that they will examine the operations of China Town stores to establish whether they comply with Uganda’s trade and investment laws.
He explained that trade laws like the Trade Act restricts non Ugandans from engaging in certain forms of trade, including hawking and retail trade in unauthorized areas.
He further mentioned that as a requirement by Uganda Investment Authority, a foreign investor should show a minimum investment capital of US $ 250,000 to qualify for an investment license.
“We are studying this issue; we will establish China Town’s threshold. If its small then we will increase for the law restricts foreigners from dealing win hawking and certain retail businesses,” added Kalega.
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