The Effect of Business Incentives on Foreign Direct Investments in Uganda: A case of Selected Investment Companies in Kampala Capital City Authority
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Date
2018-01
Authors
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Publisher
Uganda Management Institute
Abstract
This work presents study findings on the effect of business incentives on Foreign Direct
Investment in Uganda. The study was based on the following objectives; to examine the
effect of fiscal incentives on attraction of foreign investment in Uganda, to assess the effect
of infrastructure on attraction of foreign investment in Uganda and to establish the effect of
regulatory incentives on attraction of foreign direct investment in Uganda. In total, 70
respondents participated in the study out of a sample size of 85 members from different
investment companies. The study used both qualitative and quantitative techniques to
collect and analyze data. Study findings revealed that fiscal incentives have the strongest
effect on foreign direct investment (r= 0.822**; p-value=0.000), followed by
infrastructural incentives (r=0.658**; p-value=0.000), and regulatory
incentives(r=0.628**; p-value=0.000). The study concluded that fiscal incentives,
infrastructural incentives and regulatory framework affect foreign direct investment. The
study recommends that Uganda Investment Authority reduces the corporate tax rate to
attract more investors to Uganda. In addition, recommends that the government should
provide more support on worker training. The study further recommends that Uganda
Investment Authority should promote transparency while providing investment incentives
and ensure impartial system of courts and law enforcement to provide favorable investment
climate for investors.
Description
Keywords
Effect, Business Incentives, Foreign Direct Investments, Uganda
Citation
Tumushime, Elinorah (2018) The Effect of Business Incentives on Foreign Direct Investments in Uganda: A case of Selected Investment Companies in Kampala Capital City Authority