The study aimed at a study of the effect of neocolonialism on community development in Uganda and it was guided by the following objectives; To examine the concept of neo-colonialism, to explain the trend of neocolonialism in Uganda and to estimate the relationship between community development and neocolonialism. In the regression analysis, the simple regression model was used to determine the effects of independent variable (the dimension of the effect of neocolonialism) on the dependent variables (community development). From the findings, 72.8% of the investment was for new investments (green fields), 22.8 % of the investment was for already existing projects and which were actually bought off by foreign Investors, while 4.3 % of the investment was for Joint ventures. These were 25% ownership, 50% ownership, 75% Ownership and over 75% Ownership, 72.8% of the investment was for new investments (green fields), 22.8 % of the investment was for already existing projects and which were actually bought off by foreign Investors, while 4.3 % of the investment was for Joint ventures. While the study was limited to and within only the school environment to only students and teachers, engaged and who are affected by the culture, the findings showed that Majority of the student’s moral development were influenced by culture and there as well the influence of the environment; the researcher recommends that further research should be conducted on a wide scale area for more findings by using techniques which will make respondents cooperative in providing the information.