The drive to attract Foreign Direct Investments (FDI) and promote international trade has been top on the agenda for many developing countries. This has called for many countries to put in place policies that are geared to make them remain competitive and attractive for FDIs.
Specifically, the Extractive sector in the East Africa has been of focus following the recent discovery of oil and gas deposits in Tanzania, Uganda and Kenya. This has meant the putting in place policies that that are geared towards increasing investments towards that sector. The investment model adopted by players in this sector have been questionable considering the oligopolistic market in which they operate.
Characterised by dominance of few firms, offer an opportunity for the players to influence the policies and systems put in place to govern their operation. This is often possible as a result of the high probabilities of the players colluding or creating cartels. This has been demonstrated to the extent that some firms have been engaged as advisors in the development of legal frameworks that are meant to govern their operations, subsequently, subjecting the whole process to a bias.
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