Why government should speed up commercial legislations

It is so easy for counterfeit products, some of which lead to life-threatening conditions, to find their way into the local market.
Also, products from anywhere in the world can, with minimum ease, get dumped here and traded at a much lower price.
But consumers, most of whom are gullible, have been left on their own.
According to consumer activists and the leadership of the private sector apex body in the country, the three scenarios signify an environment that does not bode well for businesses whose operations are formal compared to informal ones.
Pending Bills
Although all the above cited cases can be regulated, there are no substantive commercial legislations to protect consumers, regulate counterfeits products and restrict dumping.
According to the Ministry of Trade records, there are 12 commercial bills (proposed law) that are currently under development.
The bills include; Competition Bill, Consumer Protection Bill, Alcohol Control Bill, WTO Implementation Bill, COMESA Treaty Implementation Bill, National Industrial Development Bill and Cooperative Societies Amendment Bill.
Others are the Agricultural Produce Regulatory Bill, Accreditation Bill, Anti Counterfeit Bill, The Sugar Bill and Legal, Scientific and Industrial Metrology Bill.
Although these pieces of legislation, once enacted, will help in streamlining the business environment and leveling the playing level field, most of them are either gathering dust on the Trade ministry’s shelf or locked up in Cabinet or Parliament.
Pass pending laws
Unlike the current private member’s bill to remove the 75-year cap for the position of the president from the country’s constitution which took just five days to get to the committee stage, most commercial bills have been in the offing for years.
Now the private sector apex body wants government to expedite the enactment of those proposed commercial legislations.
“We need those Bills passed because they are important for business and the economy,” Mr Gideon Badagawa, the executive director of Private Sector Foundation (PSFU), said in an earlier interview.
He continued: “The needs for those Bills are long overdue. Counterfeits and dumping are dangerous for the growth of our nascent industries. Some of these Bills once passed will regulate the predatory tendencies of many businesses, paving way for healthy competition.”
Mr Badagawa noted that the biggest challenge for government is in prioritising since it decides what to do when.
This is something the private sector has no control over.
In another interview, the Kampala City Traders Association (Kacita) chairman, Everest Kayondo wondered what is amiss with the Bills, arguing that unless there is something wrong with the proposed commercial legislations, he does not understand the delay.
He said: “We have been waiting for a law that should deal with the counterfeit as well as substandard goods. We live in the same society and we are all victims of these vices. I am wondering why the executive is not prioritising these Bills.”
The absence of the law, according to Mr Kayondo, helps to perpetuate illicit trade and breeds unfair business practices, denting the image of the country as an investment destination.
Manufacturers have been affected by the absence of commercial laws, something that subjects their products to unfair and unregulated competition. If this is not reversed, manufacturing industry players fear that it could erode the gains they have since registered, which will eventually push them out of business.
Interviewed for this article, the manager policy and advocacy at Uganda Manufacturers Association (UMA), Mr Michael Lawrence Oketcho, said there are complaints from their members pertaining to lack of those key commercial laws.
He said with those laws in place, UMA members believe they can achieve more targets, create more employment and generate more revenue to the government.
“The commercial laws are critical because the private sector players (such as manufacturers) factors there impact on their planning and development. It allows them to streamline so many of their processes,” Mr Oketcho said.
Mr Oketcho emphasised that the absence of a counterfeit and substandard law affects the manufacturers who invest in research and innovation, only to be cheated out of business by unethical practices and unfair competition.
“This is not fair. We need to be protected from predatory tendencies,” he said.
Analysts’ views
Acting Commissioner - law revision at the Uganda Law Reform Commission, Ms Esther Majambere, while speaking in a sideline interview after making her remarks at a private-public sector stakeholders dialogue on strategies for enhancing regional compliance for national laws recently, said her organisation cannot do much about the matter.
This is because the Commission does not have a mandate to compel either Cabinet or the Parliament to make laws.
However, she said: “We can make some proposals or recommendation after thorough studies and consultations about those laws.”
According to the country representative - East Africa Trade and Investment Hub, Mr Andrew Luzze, if government wants to get more revenue from the private sector, particularly the manufacturers, then it should protect them from forces that could cripple their operations.
“You must create a conducive environment for investors to operate in. The commercial Bills that are pending should be expedited because without them, how do you collect revenues from businesses that are being unfairly out competed in their own market?”
It is it difficult for them to create more jobs and expand if they are not being protected.
“Government should have those Bills enacted and implemented. Otherwise, there will be no winner in this game if the state of affairs remains the same,” he said.

STATUS OF COMMERCIAL BILLS AND LAWS

POLICIES UNDER DEVELOPMENT

National Trade Fair and Exhibition Policy
The Gift Policy
Tea Trade Policy
Sanitary and Phytosanitary Policy
Iron and Steel Policy

BILLS UNDER DEVELOPMENT

1.Competition Bill
2.Consumer Protection Bill
3.Alcohol Control Bill
4.WTO Implementation Bill
5.COMESA Treaty Implementation Bill
6.National Industrial Development Bill
7.Cooperative Societies Amendment Bill
8.Agricultural Produce Regulatory Bill
9.Accreditation Bill
10.Anti Counterfeit Bill
11.The Sugar Bill
12.Legal, Scientific and Industrial Metrology Bill

BILLS PASSED/LAWS UNDER IMPLEMENTATION
1.Sale of Goods and Services Act 2017
2.Trade Licensing Amendment Act 2015
3.UDC Act 2016
4.Hire Purchase Act 2009
5.UNBS Amendment Act 2015

Steps taken to reduce counterfeits
In a move to minimise counterfeit, UNBS, the standard’s body, has been carrying out market surveillance to rid the market of dangerous, shoddy and substandard and counterfeit products.
It also been providing information and technical advisory services to industries to enable them meet quality and standards requirements.
This is in addition to providing technical assistance to industries so as to improve on the quality and safety of their products and services.
They also carry out quality audits and inspection with the aim of quality marking or certifying products that conform to Uganda Standards or other specifications.

Developments
Commercial laws defined
According to the compendium of commercial laws in Uganda by Fountain Publishers, commercial laws/legislations include all the laws relating to business and commerce which for the very first time brought together into one substantive reference work.
The laws are grouped and set out under the following major Acts: The Companies Act, The Limitations Act; The Contract Act; The Bulk Sales Act; The Sale of Goods Act; The Partnership Act; and The Business Names Registration Act.

Weak legislation
According to the Doing Business in Uganda report of 2016, Country Commercial Guide for U.S companies, the Ugandan market, like other emerging markets, contains anti -fraud legislations which are poorly enforced.
The report warns that U.S. businesses contacted by a Ugandan business looking to make an initial purchase must exercise caution prior to finalising any transactions. While many legitimate Ugandan entities seek to source goods over the Internet, in recent years, the U.S. Embassy has received reports of fraud or attempted fraud on a weekly basis.
Fraud in Uganda is increasingly becoming sophisticated—including the use of sham websites.

Regulation of joint ventures
Ugandan law generally recognises investments and business undertakings by joint ventures between Ugandans and foreigners.
Regulations on joint ventures vary based on whether majority ownership is domestic or foreign.