The Impact of Foreign Direct Investment on The Manufacturing Sector in Uganda

Abstract

Foreign Direct Investment (FDI) as a means of economic growth has been welcomed by most East African nations in recent times including Uganda. Considerable liberalization of the prevalent investment regulations has been undertaken to facilitate the smooth flow of FDI that is, National, foreign investment laws, policies and the international investment legal framework have attracted FDI to a larger number of developing countries, Uganda inclusive. This thesis examines the impact of the Foreign Direct Investment (FDI) on the manufacturing sector of Uganda with a specific bias on soft drinks. It begins by giving the background to Uganda’s industrial investment drive outlining different periods during Uganda’s sorry investment, impact of Structural Adjustment Policy (SAPs) and the legal regime at the time relating it with its manufacturing sector. The thesis examines Uganda’s resource potential, the political and socio-economic metamorphosis, investment opportunities in Uganda, factors for attracting investors and the authority responsible for investment in Uganda. The research will further look at the international instruments on development, domestic legislation on investment and give the provisions responsible for attracting and retaining investments in Uganda and after give a critique. Specifically factors which have attracted FDI to Uganda will be investigated, the impact of FDI on the manufacturing sector, both positive/strengths and negative/weakness. Then the bottle necks of investing in Uganda’s manufacturing sector.