The expiry of the Uganda-Netherlands Bilateral Investment Treaty (BIT): Proposals for its review

Abstract

In recent years, Foreign Direct Investment (FDI) has grown at an unprecedented rate. There is probably not a developing country in the world that does not work hard to attract more FDI. Political leaders and policymakers know that FDI can bring with it jobs, capital, skills and technology. Foreign investment can also complement domestic investment when the activities of foreign enterprises generate spillover effects to the local economy through joint ventures, competition, local purchases, skills development and technology transfer, labour incomes and other vertical linkages. FDI can crowd in domestic investment hence stimulating local investment.