Minister Magyezi with Local and Foreign Investors Holding Certificates of Tax Compliance in Arua City.
Concerns have emerged among the local business community in Arua and the wider West Nile region over the increasing number of petty foreign investors who are engaging in retail trade, in some cases without the required permits.
The most affected areas include Arua City, Koboko Municipality, Zombo, and Pakwach — the gateway to West Nile — where several investors initially expected to bring large-scale ventures have reportedly turned to running small retail shops, creating what locals describe as unfair competition.
Tonny Ochaya, Vice Chairperson of the Chamber of Commerce and Industry, Arua City Branch, said urgent government intervention is needed to protect local businesses from collapse.
Arua City’s Ayivu Division Mayor, Marlon Avutia, also a member of the local business community, said many prospective taxpayers are suffocating under the pressure, with some being pushed out of business by the petty investors. He warned of long-term negative consequences if the government does not act quickly.
During a visit to West Nile on Tuesday, Local Government Minister Raphael Magyezi acknowledged the concerns. He said measures are underway to regulate the scope of foreign investors’ activities and ensure that only those with valid permits are allowed to operate.
Since Arua attained city status in 2020, several local businesses have reportedly relocated from the central business district or closed down, citing high rental costs — which they say favour foreign investors — and tax policies that weigh heavily on local entrepreneurs.
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