Effects of international relations on foreign direct investment:Acase study of Uganda investments Authority (UIA)
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Date
2024-09-20
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Uganda Christian University
Abstract
The study examined the effects of international relations on foreign direct investment
in Uganda: a case of Uganda Investments Authority (UIA). The study was guided by
objectives which included; finding out relations between Uganda and investor
countries, identifying important treaties to improve the investment climate in
Uganda, and finding out the importance of negotiations on foreign direct investments
in Uganda.
The study was carried out using a case study design with a qualitative research
approach. The data were collected using interviews during the data collection,
purposive sampling method was used. A group of 18 respondents who are top
management and staff of Uganda Investments Authority (UIA) were used as a sample
during the study.
The study established that the Ugandan investment strategy is highly dependent on
the country’s robust diplomacy with these influential partners like China, the United
State, and the United Kingdom that seek to foster long-term partnerships for the two
parties. These partnerships are very critical in enhancing Uganda’s economic
development, technology transfer and foreign investment. Also, some agreements like
the Bilateral Investment Treaties, East African Community Common Market Protocol,
and the African Continental Free Trade Area have also benefited Uganda in enhancing
the legal structure and market access which might take some time to reap results.
Nevertheless, some constraints arising in the negotiation process in Uganda
Investment Authority are bureaucratic delay, legal formalities, and culture barrier are
terms that suggest the need for better communication and clearing of procedures that
would make the Ugandan environment more attractive to the foreign investors.
Finally, the study suggested that there was a need to enhance and diversify Uganda’s
foreign alliances by building up the existing partnerships and seeking new ones
outside the existing major associates. They also suggested that there is much more
that can be done with international treaties and agreements, coupled with the need
to eliminate bottlenecks experienced during negotiation with foreign investors
through the usage of more effective and efficient methods.