U.S. Advisory on Uganda’s Anti-Homosexuality Law Raises Concerns for Business and Human Rights

Uganda’s anti-homosexuality law continues to face scrutiny from development partners, with increasing pressure on President Museveni to reconsider this legislation. The United States has issued another advisory, the second in four months since the law was enacted, cautioning its citizens to be vigilant while in Uganda, when traveling to the country, or conducting business there.

The advisory from Washington, released on Monday, identifies risks associated with corruption and human rights restrictions, including the recently passed anti-homosexuality law. Notably, this law has raised concerns among American companies operating in Uganda, such as Citibank, Prudential, John Deere, FedEx, Ernst & Young, Deloitte, Price Waterhouse Coopers, and American Tower Corporation.

Ugandan Government spokesperson Ofwono Opondo downplayed the advisory, suggesting it may not have a significant impact because US companies in Uganda do not have investments substantial enough to severely affect the economy if they were to shut down operations.

However, it’s worth noting that the implications of the advisory go beyond American companies. Dr. Fred Muhumuza, a development policy expert, emphasizes that the warning extends to any company worldwide doing business with Uganda. Such firms could potentially face restrictions in other countries, including those trading with the United States.

The timing of the advisory is also raising eyebrows, especially given ongoing discussions between the Ugandan government and the World Bank to restore vital financing. The World Bank suspended funding after the anti-homosexuality law was passed. The economist Dr. Muhumuza suggests that the US advisory, while not stating anything new, may serve as a renewed call for addressing issues like corruption and uncoordinated policies by investors and citizens, which have been raised but not adequately addressed.

Vincent Bagiire, Permanent Secretary in the Ministry of Foreign Affairs, has stated that the government is in talks with Washington to understand the significance of the advisory. Meanwhile, Ellen Masi, the public affairs counselor at the US embassy in Kampala, points out that it will be up to the companies themselves to consider and incorporate the advisory into their decisions.

The advisory further warns of potential risks to human rights activists, health workers, and members of minority groups such as LGBTQI+. It notes that the anti-homosexuality law increases restrictions on human rights, including freedom of expression and peaceful assembly.

The US government’s strong stance against the law was evident when President Joe Biden called for its immediate repeal, highlighting the law’s violation of universal human rights and its potential to lead to sanctions and restrictions on Uganda. The World Bank also suspended funding due to concerns about the law’s compatibility with its values of inclusion and non-discrimination.

In response, President Museveni reaffirmed Uganda’s sovereignty and signaled that the country would cooperate with nations respecting its sovereignty. Uganda has several substantial loan facilities with the World Bank, and the US plays a significant role in funding Uganda’s health sector, making the situation complex.

The US advisory, which underscores Uganda’s positive investment environment while pointing out challenges like corruption and threats to open and free internet access, could serve as a message to the World Bank, indicating dissatisfaction with the situation in Uganda.

In addition to its concerns about the law’s impact on human rights, the advisory warns of potential interference with business due to the law’s requirements regarding reporting of suspected LGBTQI+ individuals. This creates opportunities for corrupt actors to extract bribes, delay permits, and hinder competition.

The situation surrounding Uganda’s anti-homosexuality law remains complex, with multiple stakeholders, including development partners, closely monitoring its impact and implications for human rights and business operations.