Uganda Parliament Questions China Town Supermarket Expansion

Lawmakers on the Public Accounts Committee (PAC-Central Government) are calling for scrutiny into the increasing presence of China Town Super Store outlets across Kampala. The Ministry of Trade, Industry and Cooperatives has been tasked with addressing public concerns that the proliferation of these stores may negatively impact Ugandan businesses operating in the retail sector.

Committee Chairperson Hon. Patrick Nsamba highlighted the issue during a meeting with ministry officials, questioning the impact on local traders and the fairness of foreign investment in retail. He pointed out that foreign investors often benefit from access to cheaper credit, creating an uneven playing field compared to Ugandan traders.

“We do not say you should stop Chinese from trading in the country but you should direct them to trade in specific goods, because they access cheaper credit, the playing field is already imbalanced,” Nsamba stated.

Kyotera District Woman MP, Hon. Fortunate Nantongo, also raised concerns about the public perception of China Town stores offering lower prices. She suggested this perception might mislead consumers and draw them away from local businesses, even when price or quality differences are negligible.

In response, the Commissioner for Internal Trade, Zackey Kalega, assured the committee that the ministry will thoroughly examine China Town’s operations to ensure compliance with Ugandan trade and investment laws. He referenced existing legislation, such as the Trade (Licensing) Act, which restricts non-citizens from engaging in specific retail activities, and the Uganda Investment Authority’s requirement for a minimum investment capital of US$250,000 for foreign investors.

“This is something we are studying; we will establish China Town’s threshold. If it is small, then we shall increase, for the law restricts foreigners from dealing in hawking and certain retails,” Kalega added.

Source: Parliament of Uganda