Critical Evaluation of Investment Laws in Uganda

TABLE CONTENTS

Declaration ........................................................................................... .i

Approval. ............................................................................................. .ii

Dedication .......................................................................................... iii

Acknowledgments ................................................................................ .iv

Table of Contents .................................................................................. v

List of acronyms .................................................................................. .ix

List of Legislations ................................................................................ x

Abstract. ............................................................................................. xi

CHAP1'ER ONE ....................................................................................... 1

INTRODUCTION ..................................................................................... 1

1.0 Background ...................................................................................... I

1.1 Statement of the problem ............................................................... 5

1.2 Purpose of the study ...................................................................... 7

1.3 Objectives of the study ................................................................... 8

1.4 Research questions ........................................................................ 8

1.5 Scope of the study ......................................................................... 8

1.6 Hypothesis of the study ................................................................. 9

1. 7 Research methodology ................................................................... 9

1. 8 Significance of the study .............................................................. 10

1.8 SYNOPSIS OF DISSERTATION ....................................................... 11

1. 9 LITERATURE REVIEW .... ~ .............................................................. 11

1.9.1 BILATERAL INVESTMENT AGREEMENTS .................................... 11

1.10.2 FOREIGN INVESTMENT INSURANCE MECHANISMS .................. 16

1.10.3 INVESTMENT PROTECTION IN INTERNATIONAL LAW ................ 18

CHAP1'ER TWO ................................................................................... 21

2.1 NOTION OF INVESTMENT ............................................................. 21

vi

2.2 FOREIGN DIRECT INVESTMENT IN UGANDA ................................. 24

2.3 CHALLENGES TO INVESTMENT IN UGANDA .................................. 29

CHAPTER THREE ............................................................................... 32

3.1 IMPACT OF INVESTMENT IN NATIONAL DEVELOPMENT ................ 33

3.2 GROWTH OF INVESTMENT IN UGANDA .......................................... 37

3.3 INCENTIVES AND GUARANTEES FOR INVESTING IN UGANDA ...... .40

3.3.1 Tax incentives in Uganda .............................................................. .40

3.3.1.1 Depreciable assets ..................................................................... .40

3.3.1.2 Initial allowance ......................................................................... .41

3.3.1.3 Start-up Cost ............................................................................... 41

3.3.1.4 Other Capital allowances ............................................................ 41

3.4 MARKET SIZE AND ACCESS IN EAST AFRICA FOR INVESTORS ..... .41

CHAPTER FOUR ................................................................................. 47

4.1 THE DIFFERENT INVESTMENT LAWS/LEGISLATIONS THAT

PROMOTE INVESTMENT IN UGANDA ................................................. .4 7

4.2 PERFORMANCE REQUIREMENTS /INCENTIVES ............................. 49

4.3 TRANSPARENCY OF THE REGULATORY SYSTEM ........................... 51

4.4 THE IMPACT OF THE EAC CUSTOMS UNION ON INVESTMENT

FLOWS ............................................................................................... 52

4.5 THE SHORTFALLS TO INVESTMENT IN UGANDA ........................... &6

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS ................. 66

5.1 CONCLUSIONS ............................................................................. 69

5.2 RECOMMENDATIONS ................................................................... 70

5.3 AREAS FOR FURTHER RESEARCH ................................................ 75

REFERENCES .................................................................................... 76