By Ben Ssebuguzi
According to excerpts from Weekend Vision of June 13, 2026, Hon. Fred Byamukama stated: “We are banning all international companies from handling murram roads,” which is in line with the PPDA law as well as the Local Content Policy.
According to the law pertaining to the reservation of contracts for public works, a minister shall, in consultation with PPDA, by notice, order the reservation of certain public works contracts to be exclusively granted to Ugandan companies. This is what Hon. Byamukama is progressively seeking to implement within his ministry.
The policy also states that where the required goods and services are not available in Uganda, they should be provided by a company with a minimum local interest of 48%. To qualify as a Ugandan company, one should employ more than 70% Ugandans unless they can demonstrate that they were unable to find suitably qualified Ugandans.
The Ugandan company is also expected to employ at least 20-30% Ugandans in management positions, 30-40% in support roles, 30-40% in technical positions, and 95% in lower-level staff positions.
However, this gridlock of predatory foreign companies taking most of the procurements is, to a large extent, a result of many requirements such as bid bonds from banks, which leave many local companies locked out. These foreign companies present strong financial muscle through financial statements from holding companies, making indigenous companies less competitive.
In a letter dated September 23, 2024, to the then Finance Minister, Hon. Matia Kasaija, President Yoweri Kaguta Museveni noted concerns raised by a local contractor, SMS Company, regarding the tedious process of obtaining guarantees for performance and advance payments from commercial banks for project execution, leaving contractors with almost no capital to begin work.
At the time, the President described the practice as extortionist, anti-development, and contrary to the principles of the NRM.
According to the President, the practice prohibits fair competition and disadvantages capable local contractors who are otherwise able to execute projects successfully.
He directed that, “With local construction companies, there should be no guarantees from banks. Do not encumber our people with extra costs of bank guarantees.”
In the history of our country, we have never had a leader as passionate about the success of his people as President Yoweri Kaguta Museveni. He has consistently demonstrated a desire to see the Bazzukulu occupy the front seat in service delivery and economic participation.
Hon. Byamukama’s proclamation therefore comes at a time when government sends approximately Shs1 billion annually to districts and municipalities for maintenance of roads outside the national highway network, in addition to allocations through the Uganda Road Fund.
The mandate of the Office of the National Chairman, headed by Hajjat Hadijah Namyalo Uzeiye, is to ensure that NRM policies and government programmes are implemented as required by law and for the benefit of ordinary Ugandans.
In light of the above, the Bazzukulu look forward to benefiting from the economic opportunities arising from the Shs7.9 trillion allocation to roads and other infrastructure development projects in the FY2026/27 budget. The expectation is that more jobs, contracts, and business opportunities will reach local communities at district level.
This presents an opportunity for Uganda to deepen local participation in public procurement while reducing capital flight and promoting knowledge transfer to indigenous firms.
In conclusion, this growth requires smart and disciplined budget execution if it is to sustainably benefit the economy. The objective should not only be to retain more resources within Uganda but also to build local capacity, technical expertise, and long-term competitiveness among Ugandan contractors.
If implemented effectively, the policy could become one of the most significant local content interventions in Uganda’s infrastructure sector and a major step toward economic empowerment for the Bazzukulu.
The writer is a Researcher, Office of the National Chairman (ONC)
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