Corruption & Human Rights: Americans warned against potential risks doing business in Uganda

A business advisory issued yesterday, October 23 2023, by the USA government has cast Uganda as a place were the Americans should business cautiously because of rampant corruption and human rights abuses directed at minority groups.

The advisory was jointly issued by U.S. Departments of State, Labor, Health and Human Services, Commerce, and the U.S. Agency for International Development.

It targeted U.S. businesses, individuals, and other U.S. persons, including health services providers, members of academic institutions, and investors informing them of “potential risks if conducting or contemplating conducting business in Uganda.”

“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,” a statement from the US government announcing the advisory reads in part.

It adds: “Uganda’s enactment of the Anti-Homosexuality Act (AHA) on May 29, 2023, increases restrictions on human rights, to include restrictions on freedom of expression, peaceful assembly, and exacerbates issues regarding the respect for leases and employment contracts.”

The 2023 Investment Climate Statement warns investors about risks related to endemic corruption and the lack of respect for human rights in Uganda.

In addition, the 2022 Country Report on Human Rights Practices in Uganda provides additional detail regarding restrictions by the Government of Uganda on an independent legislature and the lack of commitment to fair trial guarantees, as well as elite capture of critical institutions, including the military and police.