FDI In The East African Community: Challenges And Opportunities

The purpose of this study is to determine and examine the Factors influencing FDI in theEAC, highlight the investment opportunities for investors and point out the challenges.We have briefly introduced the current situation of EAC before proceeding to theanalysis. Data were collected through the official EAC website, the UNCTAD website and theIMF website. Quantitative methods were collectively employed in the process of collecting dataand information required in this research. Due the difficulty to get data for EAC, We focused onGDP, Population, Openness, Labor force and labor cost as possible determinant of FDI.After the analysis of the data, we have found that the determinant we have chosen werenot significant in influencing FDI in EAC. Nevertheless, FDI has been growing in the region,although at low rate comparing to other regions. Therefore, we suggested some improvement,mostly and institutionally in order to attract more FDI.