Problems of FDI in Uganda under the Uganda Investments Authority regime, 1991-2011

Abstract

This study delved into the factors promoting and constraining Foreign Direct Investment (FDI) in Uganda during the regime of the Uganda Investments Authority. Specific attention was put on the factors promoting and constraints hindering FDI as well as the agents in FDI in the country. Following a case study research design, data was collected from Uganda Investment Authority, Ministry of Trade Tourism and Industry, URA, Immigration Department, Ministry of Lands, Registration Bureau and Investors among others. Data collection referred to the period 1991 to 2011 because it is the period during which UIA was in operational. The data were analyzed using percentages and content analysis. The findings were that five factors, namely, efficiency, resources, market, location and policy and macro economic environment attract FDI to Uganda. On the contrary, political instability, inadequate market access and inadequate natural resources repulse foreign direct investors. It was concluded that there is significant growth in investment and there are a number of planned investments that are yet to materialize. Therefore, the study recommends that the government should continue enhancing the business environment by a further improvement in institutional support, UIA should be given the authority to carry out its duties as a fully-fledged one-stop shop for investors, ensure that the registry of companies does timely filling and registration of the companies and there should be synchronization of the work of UIA and URA etc.