In response to a recent advisory from the United States regarding potential business risks in Uganda, the East African nation expressed its disagreement, characterizing the warning as lacking seriousness. The US State Department had issued an advisory cautioning potential investors about the presence of “endemic corruption” and concerns related to human rights within Uganda.
The advisory, published on Monday, emphasized the possibility of “financial and reputational risks” due to widespread corruption in the country. Additionally, it highlighted concerns about “violence against human rights activists, media personnel, healthcare workers, members of minority groups, LGBTQI+ individuals, and political opponents.”
Uganda drew international attention earlier this year when it enacted the Anti-Homosexuality Act, a move that prompted outrage from human rights organizations, LGBTQ activists, the United Nations, and Western nations. US President Joe Biden called for the immediate repeal of this legislation and threatened to reduce aid and investments in Uganda. In a parallel move, the World Bank announced the suspension of new loans to the country.
Transparency International’s Corruption Perceptions Index currently ranks Uganda at 142nd out of 180 countries. However, Uganda’s junior information minister, Godfrey Kabbyanga, encouraged US investors to disregard the State Department’s warning. He dismissed the advisory as “laughable,” stating that it did not reflect the true situation on the ground.
Kabbyanga noted that such negative advisories from the United States were not new to Uganda, but the nation had managed to maintain its stability and progress. The US advisory particularly pointed out the anti-gay law as a concern for business operations, as it “enhances restrictions on human rights, including freedom of expression and peaceful assembly, and exacerbates issues related to lease agreements and employment contracts.”
Kabbyanga, however, downplayed apprehensions about the law, which is among the strictest of its kind globally. The law includes provisions that classify “aggravated homosexuality” as a capital offense and stipulate severe penalties, including life imprisonment, for consensual same-sex relations. Kabbyanga asserted that the law was enacted in the best interests of Uganda and its citizens and emphasized that Ugandans supported it.
