Review of the Industrial Licensing Act, Cap. 91

The Commission is undertaking a study to review the Industrial Licensing Act, Cap 91. The review is intended to make the law responsive to the prevailing circumstances that are characterized by rapid economic growth and industrialisation.

The Industrial Licensing Act, was enacted in 1969 to control the establishment of industries and for other purposes connected therewith. The Act is intended to ensure that industries are established in an orderly manner that speaks to socio-economic investment climate. Industrial licensing ensures optimum utilization of investible resources, prevents concentration of economic, secures a balanced development of the country and meet the requirements of economy based on priorities. The Act, makes provisions for the procedures and processes of obtaining licenses for the establishment of an industry for the manufacture of products. The procedures include filing an application for a license to the board, inquiry into the application by the board, grant of license, objections and publication of the application.

The Industrial Licensing Act, was enacted in 1969, due to passage of time the Act has gaps and faces implementation challenges. For example, the penalties prescribed for the offences are obsolete and non-deterrent. The Act lacks clarity and certainty of the procedures for industrial licensing. Further, changes in circumstances have affected the implementation of the Act, for example, the Act is silent on environmental considerations yet industrialization poses environmental challenges. The processes and procedures for industrial licensing increase the cost of doing business and cause delays which negatively affect Uganda’s competitiveness. Finally, the introduction of the local government system has affected the implementation of the Industrial Licensing Act by allowing multiplicity and duplication of licenses. It is against this background that the Commission commenced the review of the Act to address gaps and align it to the prevailing circumstances.

The overall objective of the study is to review the Industrial Licensing Act and make proposals for reform to improve industrial licensing system. Specifically, this review shall:

The review of the Industrial Licensing Act intends to harmonise the industrial licensing system in the country, improve the doing business environment, reduce the cost of doing business, reduce registration procedure, processes and timelines. The review will also streamline the licensing system and secure a balanced development of the country.

The Commission has prepared an Issues Paper containing issues and proposals for reform. The Issues Paper will be subjected to consultations with stakeholders to gather their views. The issues identified include: