Nadhani Uganda sasa wanajifunza kwa vitendo...look here guys...Inaonekana Tanzania inaona mbali sana kuliko Uganda? Tanzania ilijihadhari mapema sana juu ya athari za kutokuwa na legal framework ktk haya masoko ya fedha... By CHARLES KAZOOBA, The East African Posted Sunday, September 28 2008 at 09:31 Ministry of Finance officials in Uganda are headed for a clash with legislators over amendments to a new law that could lock citizens from other East African countries out of the countrys stockmarket. The proposed law, seen as a challenge to the spirit and letter of East African economic integration, comes after a similar action by Tanzania, which barred its citizens from participating in initial public offers in Uganda and Kenya and likewise prevented foreign citizens from investing in the Tanzanian mart. Angered by the recent debacle of the Safaricom IPO, which saw Ugandan investors suffer huge losses, the Parliamentary Finance Committee has rejected two Bills on capital markets presented by the ministry, which it considers detrimental to Ugandas interests. The Committee wants restrictive clauses inserted in the drafts. Tanzania has in the recent past closed its stockmarket to foreign participation and also barred its citizens from trading in stocks offered by firms in neighbouring countries the latest case being that of Kenyas premier mobile phone operator, Safaricom. The committees position appears to be particularly targeted at Kenyan firms after claims of a raw deal in the Safaricom IPO. I am surprised that Uganda can make such laws that undermine the integration process. The Capital Markets Authority bosses have on the other hand been meeting to harmonise policies, especially on cross-listing, said Beatrice Kiraso, the Ugandan EAC Deputy Secretary General. We need to push for a political decision-making authority so that partner states can harmonise policies and national legislation, she said The ministry has tabled the Securities Central Depositories Bill, 2008 along with proposed amendments to the Capital Markets Authority Act, but the parliamentary committee has proposed the inclusion of restriction clauses. Uganda has been too open, unlike other members, particularly Tanzania, said Godfrey Ekanya, a member of the committee. According to Ugandas Capital Markets Authority, no law prevents foreign firms from trading stock in Uganda. It was because of this that Ugandans got an opportunity to participate in East Africas largest IPO. Because of the open system, nothing can block any company outside Uganda from selling shares here, said CMA chief executive Japheth Katto. The Ugandan MPs are now demanding that foreign firms wishing to trade shares in the Ugandan market first seek CMA approval. But both the CMA and the Uganda Securities Exchange say thay are encouraging East African companies to trade in Ugandas money markets in the spirit of the Customs Union.