The Ministry of Trade, Industry and Cooperatives has embarked on an exercise to sensitize and create awareness among stakeholders on the operationalization of the law that regulates agreements or transactions where goods are paid for by a consumer in instalments, which is known as the Hire Purchase Act.
In 2009, Government enacted a law to provide for regulation and registration of the Hire purchase agreements and the licensing of persons carrying out the business of hire purchase. Under this law, a buyer or consumer can purchase a product and use it while paying for it in installments. The law ensures transparency in the transactions or agreements, protecting both the buyer and seller from unfair terms.
However, since the law came into force, there has been minimal implementation attributed to limited awareness amongst the stakeholders.
Fred Ahimbisibwe, a Principal Commercial Officer at the Ministry of Trade, Industry and Cooperatives says the sensitization and awareness creation exercise mainly targets the District Commercial Officers (DCOs), who carry the responsibility of ensuring that the law is implemented at the local government level.
The first sensitization meeting targeted western Uganda. It was organized at Skylite Hotel in Mbarara City and was attended by over 20 commercial officers from 16 districts, 6 municipalities and Mbarara City.
In her speech that was read by Fred Ahimbisibwe, the Permanent Secretary of Ministry of Trade, Industry and Cooperatives Ms. Lynette B. Bagonza said with implementation of the EAC common market protocol, which led to opening up of Uganda’s boarders for trade with the rest of EAC partner states, there is dire need to protect unsuspecting and genuine businessmen against unscrupulous consumers and vice versa. This stems from the fact that, although businesses are built on trust, this trust cannot be taken for granted, hence need for regulation.
She urged the District Commercial Officers and Principle Commercial officers that attended the sensitization meeting to take keen interest in the Hire Purchase Law and implement it in their local governments because it is meant to facilitate trade, make it inclusive and promote private sector competitiveness.
The Mbarara City Town Clerk Simon Ejua underscored the importance of the Hire Purchase Act saying it creates an opportunity for the low-income earners to access expensive goods that they would have otherwise foregone due to financial constraints.
“I implore all the commercial officers to intensify mobilization of all the stakeholders in their localities to ensure that they comply with the existing law which facilitates easy consumption and acquisition of expensive assets”, said Ejua.
He commended the Ministry of Trade for organising the sensitization workshop that was aimed at popularizing and promoting the hire purchase system.
Ahimbisibwe says the Ministry plans to cover other regions with the next sensitization and awareness meeting scheduled to take place in central region.
