Uganda has lost approximately $1.6 billion since implementing its controversial anti-LGBTQ laws in May 2023, according to a new study.
The legislation, which includes life imprisonment for certain sexual acts and the death penalty for “aggravated homosexuality” — such as engaging in sex while HIV-positive — has had a significant economic impact, particularly on foreign investment, international aid, trade, and tourism.
These losses could account for as much as 3.2% of the country’s GDP, according to a report by Open for Business, a coalition of global companies such as American Express, AT&T, and Virgin Group.
The study projects that over five years, the economic toll could range from $2.3 billion to $8.3 billion.
The damage comes not only from lost investments and aid but also from a talent drain and increased costs in policing and legal enforcement.
According to Bloomberg, Foreign direct investment (FDI) losses alone are estimated between $40 million and $75 million per year, while international aid cuts could range from $276 million to over $1 billion annually. The Anti-Homosexuality Act has also strained Uganda’s international relations, with significant donors like the World Bank suspending funding in protest of the legislation.
Also Read: IMF’s $1 Billion Program Expires, Denying Uganda Final Payout
In August 2023, the World Bank, which has been a key financial supporter of Uganda, halted new loans to the country, citing the act’s contradiction with the institution’s values.
The bank is now in discussions with Uganda to potentially restore funding.
The report also says Uganda’s situation reflects a trend in Africa, where LGBTQ+ rights are under increasing pressure.
More than 30 African nations have criminalized consensual same-sex relationships, with some countries, like Malawi and Ghana, taking steps to introduce or enforce similar laws.
Open for Business warned that Uganda’s economic losses could worsen if the Anti-Homosexuality Act remains unchanged.
The organization urged Ugandan policymakers to consider reforms to protect the country’s economic future while promoting inclusivity for all citizens.
“These actions are essential for Uganda to build a stronger, more sustainable economy and create a society that respects the rights of all individuals, regardless of their sexual orientation.”
