Publication

This paper explores how Uganda’s economy and local firms may benefit from increasing foreign direct investment (FDI) in the oil sector and what donors might do to increase the potential benefits. More specifically, it asks 1) how well foreign investments link up with one another and whether local companies have benefited from such connections 2) what political and economic factors influence whether these links can be created, and 3) what are donors doing to support the formation of such links. The authors argue that despite positive developments, the Ugandan economy does not have the technological capabilities to make the most of FDI in oil extraction.