The Effects Of Immigration Laws And Policies In The Enhancement Of International Trade In Uganda: A Critical Assessment

TABLE OF CONTENT

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

DEDICATION ............................................................................................................................... iii

ACKNOWLEDGEMENT ................................................................... , ......................................... iv

LIST OF CASES ............................................................................................................................. v

LIST OF LAWS CITIED .............................................................................................................. vi

ABBREVIATIONS ...................................................................................................................... vii

ABSTRACT .................................................................................................................................. xi

CHAPTER 0 NE ............................................................................................................................ 1

GENERAL INTRODUCTION ..................................................................................................... l

1.0 Introduction ................................................................................................................................ !

1.1 What is international trade? ....................................................................................................... I

1.2 Background ................................................................................................................................ 2

1.3 Statement of the problem ........................................................................................................... 3

1.4 Objectives ...................................................................................... · ............................................ 4

1.4.1 General objective ................................................................................................................... .4

1.4.2 Specific objectives .................................................................................................................. 4

1.5 Research questions .................................................................................................................... .4

1.6 Significance of the study ........................................................................................................... 4

1.7 Scope of the study ...................................................................................................................... 5

1.8 Methodology .............................................................................................................................. 5

1.9 Literature review ........................................................................................................................ 5

1.10 Chapterization .......................................................................................................................... 8

1.11 Conclusion ............................................................................................................................... 8

CHAPTER TWO ........................................................................................................................... 9

INVESTMENTMENT PROCESS IN UGANDA ....................................................................... 9

2.0 Introduction ................................................................................................................................ 9

2.1 The Investment Code Act991 .................................................................................................. 9

2.1.1 Background of the Investment Code Act.. .............................................................................. 9

2.1.2 Investment Code Act and guiding principles for foreign investment in Uganda ................. 1 0

2.1.2.1 Definition of a foreign investor ......................................................................................... ! 0

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2.1.2.2 Regulation of foreign investment ...................................................................................... 11

2.1.2.3 Application for an investment license ............................................................................... 12

2.1.2.4 Appraisal of applications ................................................................................................... 13

2.1.2.5 Priority areas ...................................................................................................................... 14

2.1.2.6 Processing of applications ................................................................................................. 15

2.1.2. 7 Issuing of Investment license ............................................................................................. 16

2.1.2.8 Extension of validity of investment license ............................ .- ......................................... 17

2.1.2.9 Variation oflicense ............................................................................................................ l8

2.1.2.1 0 Implied terms and conditions of investment license ....................................................... .18

2.1.2.11 Revocation of license ....................................................................................................... 19

2.1.2.12 Exemption of investors from import duties and sales tax ................................................ 20

2.1.2.13 Enterprises which qualify for incentives ......................................................................... 20

2.1.2.14 Certificate of incentives ................................................................................................... 21

2.1.2.15 First arrival privileges ...................................................................................................... 22

2.1.2.16 Obtaining credit from domestic sources by foreign investors ......................................... 23

2.1.2.17 Protection in case of compulsory acquisition .................................................................. 23

2.1.2.18 Settlement of disputes ...................................................................................................... 24

2.1.2.19 Registration of agreements for the transfer oftechnology or expertise ........................... 26

2.1.2.20 Conditions in agreements for the transfer of foreign technology or expertise ................ 26

2.1.2.21 Extemalization offunds ................................................................................................... 27

2.1.2.22 Offences and penalties ..................................................................................................... 28

2.1.2.23 Transitional provisions .................................................................................................... 29

2.2 The Citizenship and Immigration Control Act of Uganda ...................................................... 29

2.2.1 Immigration Law .................................................................................................................. 29

2.2.2 Effect oflmmigration policies on foreign investment ......................................................... .31

2.2.3 Removal of special passes ................................................................................................... .31

2.2.4 Work permits processing ...................................................................................................... 31

CHAPTER THREE ..................................................................................................................... 34

EFFECTS OF POLICIES ON INTERNATIONAL TRADE COMPARATIVE ANALYSIS

OF UGANDA, KENYA AND TANZANIA ............................................................................... 34

3.0 Introduction ............................................................................................................................. .34

3.1 Comparison of Citizenship and Immigration Kenya Act 2011 and Citizenship .................... 34

and Immigration Control Act 2009 cap 66 of Uganda ................................................................. .34

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3.1.1 Immigration amendment act 2015 and the non-citizens employment act 2015 Tanzania ... 35

3.1.2 Work permit and operational requirements .......................................................................... 35

3.1.3 Tanzania Investment Act 1997 ............................................................................................. 36

3.1.4 East African Community Customs Management Act 2014 ................................................ .36

3.2 Effects oflaws and policies in enhancing international trade ................................................. 37

3.2.1 Protection against Expropriation and Compensation by the Expropriation ......................... 39

Properties Act 87 ........................................................................................................................... 39

3.2.2 Income Tax Act of Uganda Cap 340 ..................................................................................... 40

3.2.3 Effect of Laws on foreign investment .................................................................................. 41

3.2.4 FDI in Uganda ...................................................................................................................... 42

3.3 Conclusion .............................................................................................................................. .44

CHAPTER FOUR ....................................................................................................................... 45

SIGNIFICANCE OF INTERNATIONAL TRADE TO DEVELOPINGCOUNTRIES ...... .45

4.1 International trade .................................................................................................................... 45

4.1.1 The states parties to this convention, bearing in mind ......................................................... .45

4.2 World Trade Organization ...................................................................................................... .46

4.3 World Trade Organization ....................................................................................................... 47

4.3.1 Principles of the WTO: ......................................................................................................... 47

4.4 The Theory of Comparative Advantage .................................................................................. 50

4.5 David Ricardo's Numerical Exarnple ....................................................................................... 51

4.6 Efforts to promote international trade; .......................................................... , ........................ 52

4.7 Conclusion ................................................................................................................ , ............. 54

CHAPTER FIVE ........................................................ , ................................................................ 55

RECOMMENDATIONS AND CONCLUSION ....................................................................... SS

5.0 Introduction .............................................................................................................................. 55

5 .lReco1mnendations ..................................................................................................................... 55

5.1.1 Improvement on Tax incentives and holidays ...................................................................... 55

5.1.2 Avoiding Immigration restrictions .............................................................. , ........................ 56

5.1.3 Tariffs over quotas ...................................................................... : ......................................... 56

5.1.4 Relax immigration labour laws ............................................................................................. 56

5.2 Conclusion ............................................................................................................................... 57

BIBLIOGRAPHY .......................................................................................................................... 58