The United States government has issued an advisory discouraging its citizens from doing business in Uganda.
The U.S. Departments of State, Labor, Health and Human Services, Commerce, and the U.S. Agency for International Development in a joint statement on Tuesday, October 23, cautioned U.S. businesses, organizations, and individuals about potential perils associated with conducting business in Uganda.
The advisory claimed endemic corruption, human rights abuses, and the recent enactment of the Anti-Homosexuality Act (AHA) as some of the risks that American businesses and organizations may face in Uganda
It is essential to note, however, that this advisory does not carry the force of law.
“We are deeply concerned about the human rights abuses and the potential pitfalls that businesses may encounter. However, this advisory is not designed to impose any legal obligations but is meant to offer essential information to make informed decisions,” the document reads
The advisory places emphasis on the potential financial and reputational risks faced by U.S. entities considering business operations in Uganda.
It specifically mentions concerns related to violence against various groups, including human rights activists, media personnel, health workers, members of minority groups, LGBTQI+ individuals, and political opponents in the country.
It should be noted that in June this year, shortly after Parliament passed the Anti-Homosexuality Act (AHA) on May 29, 2023, the US government issued a travel advisory warning its citizens that they “may encounter serious risk to their safety.”
On the other hand, yesterday’s advisory claims labor abuses, including child labor, in goods imported from Uganda into the United States.
It further mentions that officials frequently engage in corrupt practices with impunity, and many corruption cases remain unresolved for years.
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“Corruption in Uganda is a critical issue that affects the business environment. U.S. businesses may face unfair practices, which can hinder their operations and damage their reputation,” the advisory reads in part.
“U.S. entities should be aware of the potential legal conflicts between Ugandan and U.S. laws and should seek legal counsel to navigate these complex legal landscapes.”
The advisory comes as the government of Uganda continues to engage in talks with the World Bank which also suspended financing for Ugandan projects over the Anti-Homosexuality Law.
