US Warns Citizens of Investment Risks in Uganda

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Biden
Joe Biden, President of the United States of America giving an address. Courtesy photo

The Government of the United States of America (USA) including the Departments of State, Labor, Health, Human Services, Commerce, and the US Agency for International Development has issued a Business Advisory on Uganda, warning its companies and citizens that, they face heightened risks and conflicting legal obligations when doing business in Uganda, citing endemic corruption and human rights restrictions intensified by the recently passed anti-homosexuality law.

“Businesses, organizations, and individuals should be aware of potential financial and reputational risks resulting from endemic corruption, described in more detail in the 2023 Investment Climate Statement, as well as violence against human rights activists, media members, health workers, members of minority groups, LGBTQI+ persons, and political opponents described in the 2022 Country Report on Human Rights Practices in Uganda”, the statement read in part.

In the advisory, the US revealed that, there are risks associated with interference and intimidation of the judiciary, and the use of influence in the courts to resolve political disputes.

“Consistently implemented legislation, rent-seeking from officials, and intrusive government security and surveillance likewise can adversely impact the ability of the US businesses and individuals to operate”, the statement read.

According to the US, Uganda’s enactment of the Anti-Homosexuality Act (AHA) on May 29, 2023, further increases restrictions on human rights, including restrictions on freedoms of expression and peaceful assembly, and worsens issues regarding respect for leases and employment contracts.

Uganda’s enactment of the Anti-Homosexuality Act led the World Bank in August 2023, to suspend new funding for Uganda, however, the world lender said recently that, it will resume funding after being satisfied with their efforts to ensure that LGBTQI+ people are safe in Uganda.

The World Bank’s suspension of funding was followed by the travel advisory which advised US citizens to reconsider their travel to Uganda citing crime, terrorism, and anti-homosexuality legislation in the country.

However, some government stakeholders including Henry Okello Oryem, the State Minister for Foreign Affairs have since said that, the American government has a right to issue advisory notes as they so wish in the interest of its citizens but whatever they do, Ugandans will not be intimidated and will not be coerced to do anything that is not in the interest of Ugandans.