This report introduces OECD tools and analysis to the East African Community (EAC). It is designed as a baseline diagnostic to explore ways to support investment climate reforms in the EAC and provides a focus on how to improve sustainable outcomes from investment. The report analyses the impact of foreign direct investment (FDI) on selected areas of sustainable development in the EAC. The policy areas comprise the legal framework for investment, including aspects related to protection and non-discrimination of investment, measures to promote and facilitate sustainable investment, the use and design of investment incentives, and the promotion of responsible business conduct. The report provides insights on the preparation of the EAC Investment Strategy, building on the existing EAC Investment Policy.