KAMPALA, Uganda—Uganda’s Parliamentary committee on Finance, Planning and Economic Development has recommended that the Investment code 2017 be passed into law but proposed some amendments.
The object of the Bill is to revise, modernize and replace the Investment Code Act Chapter 92 of the Laws of Uganda and inter alia to make it conform with the Constitution; to continue in existence the Uganda Investment Authority; to redefine the functions of the Authority; to modify the composition of the Board; to provide for the registration of investors and issuing to the investors of investment certificates; to make the Authority a one stop center for coordination, promotion, facilitation and monitoring of investment and investors; to incorporate provisions relating to finance, accounting and auditing; to provide for the submission of annual reports by the Authority and to provide for other related matters.
The Investment Code 2017 was read for the first time on 16th May 2O17 and referred to the Committee on Finance, Planning and Economic Development in accordance with Rule 118 of the Rules of procedure of Parliament.
Some of the issues that the committee observed and want amend include; the bill defines the Minister to mean the Minister responsible for Finance, Planning and Economic Development. The ministry may in future change given that there are three function areas mentioned in the definition.
It defines a domestic investor as a citizen of the East African Community Partner State. However, committee members contend that there is need to define a domestic investor as a Ugandan citizen so that the country is able to provide incentives and develop local investment in the country.
The bill prescribes the minimum capital requirements for investors to be granted an investment licensee. The minimum capital requirement is set at $50,000 (Fifty thousand United States dollars). This will require the minister to come to Parliament every time this amount has to be revised depending on the circumstances. The committee suggests that this amount should be put in the regulations to enable the minister revise the figure when the circumstances require it to be adjusted.