Impact of East African Integration on Foreign Direct Investments 1980-2015

Abstract

The African continent has embraced the aspect of regional integration since independence. Africa is a continent that is blessed with a huge mass of land and natural resources. It is also composed of small national economies and landlocked countries. Inorder to survive and coexist in the international system, nation states form regional organizations. The main objective is to develop strategies to solve their own problems. Africa is home to many regional blocs. This research project focuses on regional integration process in Africa with respect to the East African community. The East African community integration has brought five nation states together. This study seeks to explore the integration process of East Africa and its impact on foreign direct investments. The ultimate goal of East Africa community is to improve the standard of living of the citizens in the region and develop good strategies to alleviate poverty and economic problems. Integration seeks to open new markets, increase investments and maximize opportunities within the region. East African community has engaged in integration process for a long period of time. This study looks at the gains, opportunities and challenges in the member states due to this integration. This research will explore the impact of EAC integration on foreign direct investments. This study confirms that East Africa integration has improved investments within the region and increase in membership. Through the evidence from secondary and primary data analysed, there is still room for growth and development in the East African region. The data used in this study included; articles, world investments reports, world bank, journals and books. This study confirms that the East African integration has opened new economies and facilitated foreign direct investments into the member states. The East Africa community has invested in infrastructure e.g expanding ports in Mombasa and Daressalaam and the standard gauge railway. The study notes that there is still work needed to be done on joint investment policies and regional approaches within the member states.