10Measures (Strategies/Steps) taken to attract Foreign Direct Investments
- Providing a favorable investment climate by the government. This is in form of providing tax holidays, subsidization, offering investment incentives, assisting foreign investors to secure licenses and industrial plots etc. in order to attract foreign investment
- Economic liberalization. There is need for the government to remove unnecessary restrictions from economic activities to allow foreign investors to carry out production and marketing of their products freely with limited interference. In addition, there is need for the government to privatize the inefficient state owned enterprises so as to increase the inflow of foreign capital into the country.
- Construction and rehabilitation of the basic social and economic infrastructure. This is in form of transport network; communication facilities, power generation, water facilities; financial facilities etc. This.is aimed at facilitating production, distribution and marketing of goods and services by foreign investors.
- Establishment of institutions to promote foreign investments. There is need to promote and strengthen institutions like Uganda Investment Authority (UIA) and Uganda Manufactures Association (UMA) in order to provide clear information required to setup investments in the country.
- Market expansion. There is need for the government to expand market for the locally produced goods and services through economic integration, market research, promoting trade exhibitions and encouraging economic diversification.
- Improvement-in the level of technology. There is need for the government to encourage and promote the use of better techniques of production which are cost effective so as to attract foreign investors.
- Training of the local manpower. There is need for the government to undertake appropriate manpower planning like emphasizing the teaching of science subjects to equip .labour with the technical skills required by foreign investors.
- Ensuring macro- economic stability. There is need for the government to control inflation and to ensure stability in the foreign exchange market as a way of encouraging foreign investors in the economy.
- Increasing the exploitation of natural resources. This is aimed- at obtaining raw materials required for production of goods and services by foreign investors, For example the exploitation of oil products in Bunyoro region,
- Ensuring political stability, There is need for the government to promote political stability by ensuring good governance, negotiating with rebel groups and granting them amnesty in case they surrender etc. This helps to create a favorable environment for foreign investors.
CATEGORIES Economics
TAGS Dr. Bbosa Science
