The Departments of State, Labor, Health and Human Services, Commerce, and the U.S. Agency for International Development, today issued a Business Advisory on Uganda.
The Advisory issued on October 23, 2023 informs U.S. businesses, individuals, and other U.S. persons, including health services providers, members of academic institutions, and investors, of potential risks they may face if they are conducting, or contemplating to conduct, business in Uganda.
“Businesses, organizations, and individuals should be aware of potential financial and reputational risks resulting from endemic corruption, 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 advisory reads in part.
According to the investment Climate Statement, the US state department highlights Heightened risk for all Prospective Businesses and Investors, Heightened Risks for Media, Broadcasting, Advertising, and Related Industries, as well as Potential for Conflicting Obligations.
The statement highlights risks associated with interference in and intimidation of the judiciary, use of influence in the courts to resolve political disputes, and co-opted security forces.
“Inconsistently implemented legislation, rent-seeking from officials, and intrusive government security and surveillance likewise can adversely impact the ability of U.S. businesses and individuals to operate. These actions may become more frequent in the lead up to the 2026 elections; similar patterns of violence and disregard for the rule of law occurred ahead of the 2021 and 2016 electoral processes” the statement notes.
The statement further cites Uganda’s enactment of the Anti-Homosexuality Act (AHA) on May 29, 2023, thereby increasing restrictions on human rights, to include restrictions on freedoms of expression and peaceful assembly, and exacerbates issues regarding the respect for leases and employment contracts.
“The enactment of the Anti-Homosexuality Act according to the statement expands these risks and creates additional opportunities for interference with business operations as it, among other things, mandates reporting of individuals suspected of homosexual behavior, imposes a life sentence for consensual same sex relations, and allows for a 20-year prison sentence for mere “promotion” of homosexuality, which is defined so broadly as to potentially cover a wide range of activities” the statement adds.
The statement implies that there have been credible reports of landlords evicting private and commercial tenants based on the landlord’s unsubstantiated claim that there is activity taking place in violation of the Anti-Homosexuality Act.
The statement notes that officials in Uganda government frequently engage in corrupt practices with impunity, and many corruption cases have been pending for years.
“While Anti-corruption laws extend to family members of officials and political parties, in practice many well-connected individuals enjoy de facto immunity for corrupt acts and are rarely prosecuted in court. This endemic corruption can impede U.S. businesses’ ability to engage in government procurement processes and obtain necessary permits. It also poses reputational risks for U.S. companies operating in such a business environment. The AHA creates additional avenues for corrupt actors to extract bribes, delay permits, and hinder competition through LGBTQI+ reporting under the law, or threats of such reporting, which require little to no substantiation.” The statement further notes.
It also notes that security forces subject journalists and media houses to violence and harassment, government officials having directly and indirectly censored media through intimidation and other means.
