Uganda is sharpening its legal tools to attract global investment, with Deputy Speaker Thomas Tayebwa declaring that a stronger insolvency regime will be a magnet for international capital and a catalyst for local business confidence.

Speaking at the 8th Annual Insolvency Conference, Tayebwa said a robust insolvency framework is no longer optional but essential for any country serious about economic transformation.

“A robust insolvency regime not only builds confidence within the business sector but also plays a key role in attracting global investors,” he stated, emphasizing that Uganda must position itself as a safe and predictable environment for investment.

Tayebwa underscored the urgent need to demystify insolvency, especially among small and medium business enterprises (SMEs), where it remains shrouded in stigma. “Unfortunately, insolvency still carries a lot of stigma, as no one wants to admit failure,” he said.

He argued that insolvency should not be seen as a death sentence for businesses but rather a strategic tool for recovery and growth. “Insolvency can serve as a path to business recovery, allowing owners to step aside temporarily while others restore the business to health,” he added.

The Deputy Speaker reassured stakeholders that Parliament is committed to supporting reforms aimed at enhancing Uganda’s insolvency regime, including potential legislative amendments to strengthen institutions such as the Uganda Registration Services Bureau (URSB).

He noted that a modern and effective insolvency system would not only improve the survival chances of struggling businesses but also signal to international investors that Uganda is a sound place to do business.

In a broader move to fuel economic growth, Uganda is also pursuing ambitious redevelopment projects, including a plan to relocate Luzira Prison to Buikwe to pave the way for a five-star hotel. The project is expected to create jobs and inject new energy into the local economy.