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Some Ugandan queer rights organizations have asked the government to repeal the country’s Anti-Homosexuality Act that is currently under appeal at the Supreme Court to save the country from huge economic losses.
The organizations, while reacting to a new report that reveals the Anti-Homosexuality Act has cost Uganda up to $1.6 billion since President Yoweri Museveni signed it in May 2023, note the draconian law is not just “regressive” to LGBTQ rights, but also the economy.
The report that Open for Business, a coalition of leading global organizations that champion LGBTQ inclusion, released on Oct. 10 identifies foreign direct investment, donor aid, trade and tourism, and public health and productivity as major areas that economic losses have impacted.
“Combined losses over five years are projected between $2.3 billion and $8.3 billion,” the report states.
The estimated annual loss breakdown to Uganda’s economy includes $75 million in foreign direct investment, more than $1 billion in donor funding, $312 million in the fight against HIV/AIDS and other public health efforts, $99 million in tourism and $500,000 in trade for tariff payments after the Biden-Harris administration suspended Kampala from the preferential Africa Growth and Opportunity Act.
Other projected annual losses over the next five years because of the Anti-Homosexuality Act are $24 million in labor production because at least 15,000 queer people have fled Uganda, $58 million in national productivity from homophobic stigma and legal repercussions for LGBTQ people, and $500,000 from over-policing and legal costs associated with the law’s enforcement.
The recorded and projected Uganda’s economic losses are attributed to its strained relations with international partners, such as Western countries that imposed sanctions on Kampala over the Anti-Homosexuality Act, and global financiers, such as the World Bank Group that suspended funding.
The Open for Business report notes Kampala’s damaged global relations and funding suspension has impacted Ugandans’ access to antiretroviral therapy because of shortages and medical workers who refuse to treat queer patients because they fear that authorities will punish them.
It also indicates the impact on Uganda’s tourism sector because of the Anti-Homosexuality Act’s negative global perceptions has indirectly affected the hospitality, transport, and retail industries.
“As the global economy becomes more interconnected and competitive, countries that fail to embrace diversity, and inclusivity are likely to fall behind,” the report states.
The report points out that nearly half of the 49 percent of Ugandans who sought asylum in the UK last year said homophobia prompted them to flee the country. It warns this exodus diminishes Kampala’s growth potential and urges Museveni’s administration to amend or repeal the Anti-Homosexuality Act to restore international confidence in economic support and investment.
“Uganda continues to enforce the AHA (Anti-Homosexuality Act) without addressing international concerns, leading to severe economic isolation,” the report states.”In this scenario, FDI (foreign direct investment) and donor aid could decline sharply, tourism might collapse, and key partners could impose more trade sanctions.”
Uganda Minority Shelters Consortium, a local NGO that supports and advocates for the rights of LGBTQ people who are homeless and/or victims of violence, described the report’s findings as “alarming,” and added it shows how the Anti-Homosexuality Act and other anti-LGBTQ policies affect the economy.
UMSC Coordinator John Grace told the Washington Blade that the Ugandan government should heed the report’s warnings and “take immediate action to repeal the AHA in its entirety” and not to hurt the country’s economic development.
“The economic cost of this discriminatory law is too high and the human rights violations it perpetuates are unacceptable,” Grace said.
Grace also noted the projected exodus of 15,000 LGBTQ people from Uganda because of the Anti-Homosexuality Act would be a “tragic loss” for the country in terms of skilled manpower.
Let’s Walk Uganda, a local lobby group that openly LGBTQ people lead, also responded to the report, noting its findings add more economic pain to the “ravages of the COVID-19 pandemic.”
“The anxiety within the investment and general business community as a result of the AHA cannot be underestimated,” Let’s Walk Uganda Legal Manager Alex Musiime said. “The ridiculous law should be dropped. The court (Supreme Court) ought to do the right thing and annul this apartheid law.”
Musiime said the World Bank and Uganda’s other international partners and financiers should “intensify dialogue” with Museveni’s government to repeal the Anti-Homosexuality Act to save the vulnerable population from the suffering that the freezing of crucial aid to them has caused.
“The Ugandan government should be moved to commit to respecting the rights of LGBTQ+ persons in the implementation of World Bank projects. It should treat this piece of hate in the AHA as no law at all,” he said.
Both Musiime and Grace applauded the Uganda’s Human Rights Commission’s recent plea for the government to decriminalize consensual same-sex sexual relations. They consider it a “positive step” that should be “followed by concrete actions” to end homophobic discrimination, violence, and harassment.
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