The Ugandan parliament is considering a bill proposed by infrastructure minister Katumba Wamala that would provide sanctuary to local construction companies when bidding for smaller road contracts.
Although China was not mentioned in the proposed legislation specifically, it’s widely believed that the new law is intended to shield Ugandan contractors from China’s state-owned construction companies that have been very successful in building roads throughout the East African country.
Chinese and other foreign contractors are often chosen over smaller local companies because they have more financial resources and a longer track record. This has caused quite a bit of controversy in a number of countries like Namibia and Nigeria, where vibrant construction sectors exist, but whose companies often can’t compete against the Chinese multinationals.
If the new law is passed, road construction projects valued at less than $12 million would be reserved for local companies.
SUGGESTED READING:
