Regional private sector set to discuss local content

Local content requirements have been used with varying degrees of success in many countries in the world.
Local content policy requires firms to use at least a specified minimum amount of domestically produced inputs into their production process with the aim to enhance domestic industrial base, innovation, transfer of technology, employment generation, production efficiency and a check against trade imbalances.
Most developed countries have employed local content guidelines to boost domestic value addition.

In order to embrace local content today in Kigali, Rwanda, more than 400 regional stakeholders from public and private sector will deliberate on the tie between application of local content requirements and regional industrialisation during the second East African manufacturing summit.
The summit which ends on Thursday will also provide an avenue for the private sector to share practical insights on the linkages among local content, domestic value addition and promotion of industries.
Ms Lilian Awinja, East African Business Council chief executive officer, said: “Local content requirements in regard to Public and Private Procurement of large projects such as infrastructure can create high demand of locally manufactured products and promote technology based business startups.”

Manufacturing
The summit will also provide a stage for discussion on cross cutting issues related to manufacturing specifically: finance for manufacturing sector; standards and quality management; industrial skills, technology and innovation.
It also hopes to combat illicit trade, product piracy and intellectual property violations and attracting diaspora investment in the manufacturing sector. Industry round tables on automotive, agro-processing, food and beverages; mineral processing; pharmaceuticals; construction materials; fertilisers & agro-chemicals as well as leather & textiles sectors will also be held.

“Improving the value chain of EAC Strategic Sectors is key for the region to reap benefits of local content requirements,”Ms Awinja.
Mr Richard Mubiru, a director of Uganda Manufacturers Association, commenting on the issue of local content and boosting capacity said: “We are coming up with an intervention by doing capacity studies annually in conjunction with Ubos. Going forward, attaining information about manufacturers’ capacity should not be an excuse,” he says.

Local Content Bill
In Uganda, a Local Content Bill 2017 is under formulation by Kasanda North Member of Parliament Mr Patrick Nsamba Oshabe.