The Impact of Foreign Direct Investment (FDI) on Uganda’s Economic Growth: Trends, Determinants, and Policy Implications

Kaikara Mukasa

Department of Business Management Kampala International University Uganda

ABSTRACT

Foreign Direct Investment (FDI) has emerged as a significant driver of economic growth in Uganda, with recent trends indicating a notable increase in FDI inflows across various sectors. This paper explores the trends, determinants, and policy implications of FDI on Uganda’s economic development. Analysis of recent data reveals a steady rise in FDI inflows, particularly in sectors like telecommunications, energy, and manufacturing, reflecting growing investor confidence in Uganda’s economic prospects. Key determinants shaping FDI inflows include political stability, macroeconomic conditions, market size, and institutional quality. Policies aimed at enhancing these determinants can further bolster Uganda’s attractiveness to foreign investors. Despite the positive impact of FDI on economic growth, challenges such as inadequate infrastructure and regulatory hurdles persist, necessitating targeted policy interventions. By addressing these challenges and leveraging FDI effectively, Uganda can harness its full potential for sustained economic development and prosperity.

Keywords: Foreign Direct Investment (FDI), Economic Growth, Policy Implications, Determinants, Sustainable Development.

CITE AS: Kaikara Mukasa (2024). The Impact of Foreign Direct Investment (FDI) on Uganda’s Economic Growth: Trends, Determinants, and Policy Implications. RESEARCH INVENTION JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT 3(2):75-82.