New Guidelines to Reduce Government Importation

Ministry of Finance has Thursday announced a new set of guidelines aimed at promoting local content in government procurement of inputs for its development programs.

The new Guidelines on Reservation Schemes to promote Local Content in Public Procurement have been issued by Public Procurement and Disposal of Public Assets Authority (PPDA), approved the principal regulator of Public Procurement in Uganda.

Announcing the guidelines to the media in Kampala today, Finance Minister Hon Matia Kasaija said these are intended to among others support locally manufactured products; knowledge transfer; and human capital development.

“The main objective of the Guidelines is to provide for mechanisms of increasing the input of local labour, goods and services in the procurement of public sector projects, goods and services within the country as below,” he said.

Under the guidelines for instance procurement for road works whose estimated cost is UGX 45 Billion and below; and other public works whose estimated cost is UGX 10 billion and below shall be made locally.

Also no Procurements for consultancy services whose estimated cost is UGX 1 Billion and below will be made abroad.

These also place a ban on the importation of uniforms and related clothing materials like bed sheets and curtains, worth UGX 100 Million and above, by the Ministry of Defence, Uganda Police Force, Uganda Prisons Services, Ministry of Health, National Medical Stores and Uganda Wildlife Authority.

Procurement of electrical cables and conductors worth UGX 100 Million and above by Rural Electrification Agency, UETCL, UEDCL, and KCCA will have to be made locally.

These follow President Yoweri Museveni’s recently proclaimed war on the over importation, which he says is the primary cause of the country’s poor economic performance.

Click the link below to download the full set of guidelines.

Local Content Guidelines 22.3.2017 (1)

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