![[Uganda] Traders call for regulation of foreign firms to safeguard local jobs and promote healthy competition](Uganda traders.jpg)
[Uganda] Traders call for regulation of foreign firms to safeguard local jobs and promote healthy competition
Traders from northern and eastern Uganda have asked government to ensure that the participation of foreigners in the economy is well regulated.
The traders singled out foreigners, especially of Asian origin in retailing business, whom they accused of unfairly competing with local traders.
According to the traders, the participation of foreigners in the economy should be regulated so that they don’t destroy the small scale industries owned by Ugandans. The foreigners are said to be using unfair tactics and are thought to be favoured by government.
A businessman from Lira Municipality, Mohammed Ogola, said the foreigners operating businesses in Lira are repatriating money to their countries, leading to micro-inflation in the area, thereby affecting the local people.
Recently, President Museveni said foreigners should not operate at “terminal level” and instructed the relevant government ministry to ensure that they are re-directed to manufacturing and construction.
Addressing the social economic transformation obstacles during the Cabinet retreat in July this year, Mr Museveni applauded Ugandans for welcoming more than 600,000 African refugees and singled out Chinese and Indians in retailing business, whom he accused of unfairly competing with local traders and other African immigrants.
“It is not correct for the regulators not to take action against the Chinese and Indian retailers who unfairly compete against our retailers,” Mr Museveni is believed to have said.
Contributing to a discussion on Micro, Small and Medium Enterprises policy, Ms Filder Abwono Obote, a wholesaler, accused the Indian traders of dominating retailing business, making the local business people uncomfortable.
“They are taking over. We are no more!” she said.
“If I sell a bag of cement at $10, they can opt to sell that at $12. Where will the customer go? Automatically, local persons will opt to go where the price has fallen,” she explained.
“So nothing is left completely with a local business person compared to an Indian who gets their things right from the factory or industry,” said Ms Abwono, who accused the ministry of favouring foreigners.
Mr Francis Ogema Awany, the spokesperson for Uganda Chamber of Commerce and Industry, Lira Branch, said local traders are finding it hard to compete with Indians because their counterparts operate their business just like a family.
“You find that they send their agents in the district, get their products from the industry, and sell at the district with the same local person. From there they even reduce the price of their products,” he said.
The executive director African Initiatives for Rural Transformation, Mr Joel Okao Tema, advised: “I think we need to organise ourselves locally and outcompete them in our local environment.” Government aims to leave petty trading to the locals.
