Like many other African Countries, one of the critical requirements for foreign corporations to successfully operate in Uganda is having a good grasp of the local culture.
Many foreign corporations have failed due to cultural misunderstandings.
One of the main ways of addressing this challenge is through working with suitable local partners, local partners familiar with local nuances.
A local partner can be engaged through a partnership or joint venture, though a joint venture is preferred for sharing risk.
However, engagement of local partners in Uganda can be challenging.
Here is a guide for successful engagement and collaboration.
- Partner Identification: Engage a local attorney with experience in doing business in Uganda. A local attorney will know where to find a suitable partner, a partner with similar values as your corporation, and a partner with expertise in your industry, among others.
- Profile Verification: Double-check the prospective partner’s track record to ensure it’s ability.
- Check Reputation: Check for any corruption scandals and review the directors’ Interpol reports.
- Check Compliance with Local Laws:
- Is the prospective local partner registered?
- Does it have current operational licenses?
- Does it have current tax payment clearances?
- Do it adhere to Ugandan Company Law?
- Verify Financial Position: Review the books of accounts presented by the prospective local partner to assess stability or local partner’s true financial position.
- Conduct Interviews: Meet and engage the prospective partner to see whether they have relevant expertise in your specific sector, share similar values, and so on. Also, be open and clear about your goals and expectations.
- Check Sustainability and Ethics: Check the ratio of females in management positions, adherence to minimum monthly pay, non-use of child labor, environmental promotion, and progressive workplace human resource policies, among others.
Upon engagement can then develop a joint work plan, agree on objectives, models, activities, and targets.
