The United States Government has warned its business community and potential investors in Uganda over what it describes as a hostile business environment characterized by endemic corruption and violence against gay rights activists and political opponents.

In a business advisory issued on Monday, October 23, 2023, the U.S. Departments of State, Labour, Health and Human Services, Commerce, and the U.S. Agency for International Development said these actions may become more frequent in the lead up to the 2026 elections.

“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,” the advisory reads in part.

“There are 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,” it adds.

According to the advisory, 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 US government warns that the enactment of the Anti-Homosexuality Act 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.

“For example, 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 AHA,” the advisory reads in part.  

Quoting the 2022 Country Report on Human Rights Practices in Uganda, which the US government says security forces subject journalists and media houses to violence and harassment, they further warn that the anti-homosexuality act increases these censorship risks by criminalizing a wide range of commercial activities that are of particular interest to media, broadcasters, the advertising industry, and related industries.

“For example, the AHA prohibits and penalizes the printing, broadcast or distribution of “material promoting or encouraging homosexuality.”  The law does not further define these terms, but in practice government officials have previously criticized media outlets by using a very broad definition of what constitutes promoting and encouraging homosexuality,” the advisory adds.

The latest response from the Joe Biden administration adds to the many worldwide condemnations of the anti-homosexuality act.

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The Democratic People’s Republic of Korea (North Korea) is set to close its embassy in Uganda, as announced by Ambassador Jong Tong Hak.

While meeting President Yoweri Kaguta Museveni at State House Entebbe, Hak revealed that North Korea has taken a strategic measure to reduce the number of embassies in Africa, Uganda inclusive in order to increase the efficiency of the country’s external institutions.

He assured Museveni that the bilateral relations between Uganda and North Korea will continue despite the changes.

“Our connections will be continued through Malabo- Equatorial Guinea. Our ambassador will soon present his credentials to you. Our physical absence cannot block our hearts, minds, and souls. Our good friendship will continue and will be further strengthened and developed. I convey this commitment from my government. I have lived in Kampala for many years. I love Uganda and its people,” Hak said.

He also applauded Museveni for consistently supporting the Korean government in enforcing its peaceful efforts to realize a harmonious unification of the Korean Peninsula. “Although the Korean Peninsula situation is still intense, our government is trying to stabilize the situation. That is why it continues to build up its strength to protect its territory and people. My government still vividly remembers your famous speech at the UN General Assembly in 2017 which you made before the world as you expressed your gratitude to our government, such a speech made us happy, and we are grateful,” Hak said.

Museveni applauded Hak for the job well done during his service in Uganda. Hak has been in Uganda for ten years since 2009 first as the deputy ambassador and later as full Ambassador.

Last week, the Norwegian government announced that it will close its embassy in Uganda come 2024.

The Norwegian Minister of Foreign Affairs, Anniken Huitfeldt, said the move is part of the government’s ongoing assessment of its foreign service to best safeguard its development policy priorities in line with available resources.

According to the government, the missions will be closed in 2024 while the diplomat positions from these two missions will be redirected to other Norwegian diplomatic and consular missions.

“In a rapidly changing world, it is essential for us to have diplomats in the places where they can monitor global issues that have implications for Norway and promote Norwegian positions. At the same time, we must continually assess where it is best to maintain a presence in order to safeguard Norwegian interests optimally with the resources we have,” said Minister Huitfeldt.

The government says as part of the changes, Norway will have fewer, but more robust Foreign Service missions while more diplomatic staff will be posted to the Norwegian Embassies in Accra, Addis Ababa, Dar es Salaam, Kinshasa and Nairobi “in order to strengthen efforts in priority areas such as food security, business development and regional security in Africa.”

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Parliament’s Committee of Commissions, Statutory Authorities and State Enterprises (COSASE) has ordered city lawyer Patrick Katabaazi Kiconco, to pay back Shs39 billion he received from the National Agricultural Advisory Services (NAADS) that was intended for tea farmers in western Uganda.   “Lawyer Katabaazi should be prosecuted for failure to fully remit money meant for tea nursery bed operators. Mr. Katabaazi should pay all the amounts due to the beneficiaries within six months from the date of adoption of this report,” read in part a report from Parliament’s Committee of Commissions, Statutory Authorities and State Enterprises (COSASE).   In addition, Parliament also advised government agencies to refrain from making payments through lawyers in order to prevent similar occurrences in the future.The COSASE report emphasises that all future pending payments should be made directly to the beneficiaries.   This development follows the arrest order issued by lawmakers in August of this year, based on the misappropriation of Shs39 billion intended for tea farmers as payment from NAADS.   The 2021/2022 Auditor General’s report had raised concerns about the lack of evidence indicating that the funds reached the intended beneficiaries.   Katabaazi had claimed to represent a group of over 711 tea nursery bed operators who were seeking compensation for their unpaid claims from NAADS.   However, some MPs contested his assertions, presenting bank statements that revealed discrepancies between the amounts reported by Katabaazi and the actual funds received by the farmers.   The committee was also informed of transactions where funds were transferred back to the law firm’s account, suggesting potential impropriety.   Katabaazi denied the existence of any complaints from farmers regarding the payments, but this statement drew criticism from MPs who accused him of insinuating that the lack of complaints implied satisfaction.   He clarified that the accountability report submitted to NAADS did not include the figures mentioned by the MPs, as it was a summary of the payments made at that time.   During the proceedings, NAADS officials confirmed that the schedules of accountability were generated by Katabaazi’s law firm.   However, the lawyer denied allegations of imposing a standing order on the beneficiaries’ bank accounts, reiterating that his primary relationship was with the eight individuals who approached him, rather than the aggrieved beneficiaries, despite initially claiming to represent the interests of 711 farmers.

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