ATTITUDES TOWARDS FOREIGN INVESTMENT IN UGANDA

Jacob Waiswa
Situation Health Analyst
Dishma-Inc.
P.O. Box 8885,
Kampala-Uganda
Tel. +256392614655/+256752542504
dishma.imhs@gmail.com
www.situationhealthanalysis.blogspot.com

Since liberalizing the economy in 1987, foreign investment has been much sang, appealing and ardently supported by the national resistance movement government –to the extent that anyone who sabotaged the ‘good’ intentions of foreign investors faced its (government) wrath.

Such intentions, for example, were to: reducing the unemployment burden and managerial inefficiency in government bodies charged with promoting cash crop economy that afflicted the nation, then.

With 48% admissions to the fact that foreign investment was good for the country, 27% who said foreign investment was not good for the country, 22% who said that sometimes it was good for the country, and 3% (who did not know whether it was good), it either total failure on the part of the architects of foreign investment major paradigm or lack of government involvement, commitment and will to ensure fair treatment of local business competitors and laborers. Foreign firms have been criticized for coming in with own labor force, low payment, and poor treatment of local labor force.

And those who were supportive (at 57%) to non-government organizations (NGOs) positive contribution to development, 12% (who said NGOs did not contribute to development), 31% (who said that sometimes NGOs contributed to development), 3% (who said did not know about NGO contribution to development), is a reflection of areas –where NGOs can be found and their impact on the people there. Some areas did not have NGOs, yet their services were highly needed.

NGOs have been famed for locating themselves in urban areas rather than in rural areas –where services are dearly needed. At the same time some of them are brief case type or simply do not deliver the much-needed public goods.

The 21% who said yes to a fact of government monitoring of foreign investors, 47% (who said government did not monitor foreign investors), 28% (who said that sometimes government did monitor foreign investors, and 4% (who said they did not know whether government monitored foreign investors) answers the question of inadequacy of non-government organizations and foreign investment firms in their primary goals to people emancipation and reducing administration costs of corporate governance by government.

These firms need to be monitored to best benefit the people like genuine employment, fixed minimum living wage and protection of local businesses. For those, who said yes to a fact the government monitored foreign investors (at 21%) cited the roles government standards agencies in attempting to maintain the standardization of production, ensure consumer rights and citizen welfare.

23% (who said yes), 55% (who said no), 23% (who said sometimes) and 1% (who said did not know) –on the effectiveness of poverty eradication programs, showed the general dissatisfaction of the citizens about government-driven programs to eradicate poverty.

The national agricultural advisory services (NAADS) has been criticized for being partisan and corrupt citing numerous officials country-wide arrested for swindling NAADS funds. Funds are reportedly not accessed by the grassroots people who need them –but, rather, disappeared along the way.

In conclusion, whereas foreign investment is a good calling, it is full of inefficiencies that must be corrected if they are to mean anything to the people of Uganda. The government only does the appeasement role in its deals with foreign investors –with little or no respect for its people.

It is, thus, important that government increases the power and effectiveness of its regulatory organs to highly favor and protect its citizens’ endeavors –since it is them (citizens) who eventually feel their (foreign investors) impact.