This dissertation analyses the role of neocolonialism on Uganda's economy and it examines the foreign political and economic institutions in their historical setting and the way they negotiate with the modern political arrangements under neo - colonial authorities. There has been an attempt by the elite to adopt a conciliatory attitude using the state patronage to make them part and parcel of the contemporary political system. This paper tries to provide some theoretical approaches of the neocolonialism in Uganda, and provide practical strategies to the challenges caused by neocolonialism in Uganda. The data from questionnaires were recorded, edited, and categorized according to the research objectives. The researcher used content analysis, which involved editing transcript of the interviews to be presented in a logical form. The political elites of Uganda should transcend nationalistic ideologies of the state by adopting the ideology of multiculturalism in which every citizen doesn't have to imply a particular cultural identity, to fight for a common goal of national cohesion.