According to a new study, the anti-LGBTQ+ law passed in Uganda in May 2023 caused the country to lose over $1.6 billion in the first 12 months since it was introduced. The law is considered one of the most extreme anti-LGBTQ+ legislation in the world and even includes the death penalty.
The Anti-Homosexuality Act 2023 was signed into law in May last year by Ugandan President Yoweri Museveni. While same-sex relationships were already criminalised in the country due to colonial-era legislation, the new measures saw some of the harshest punishments in the world introduced for offenders.
Under the law, engaging in same-sex sexual relationships can result in life in prison, and those found guilty of “aggravated homosexuality”, which includes having sex while HIV Positive, face the death penalty. Additionally, campaigning for LGBTQ+ rights is punishable by up to 20 years imprisonment.
The legislation has already caused LGBTQ+ people to lose jobs, be evicted from their homes and lose support from their families. In addition to this, it has also had a strong negative impact on the country’s economy. A report released by Open for Business, a coalition of global businesses dedicated to inclusion, shows that the anti-LGBTQ+ law caused Uganda to lose between $470 million and $1.6 billion in the first 12 months since it was passed.
The losses caused by the legislation include foreign direct investment, international aid, trade and tourism. Soon after the law was introduced, the World Bank, which has been Uganda’s biggest budget support provider, announced that it was halting new lending to the nation because the legislation contradicted its values.
Moreover, the law exacerbates public health challenges, contributing to worsening the public health crisis and causing losses annually. It has also elevated policing and legal costs for its enforcement, not to mention the loss in human capital as people are leaving the country to flee persecution.
This trend is expected to alter the trajectory of the country’s economy in the years to come, with estimated losses between $2.3 and $8.3 billion over a five-year period. According to Open for Business, the Anti-Homosexuality Act 2023 is making it harder for Uganda to “foster a dynamic and diversified modern economy that is attractive to investors, tourists and skilled workers”.
In a statement, the coalition said that, while Uganda has already made significant losses, the economic situation will worsen if the Anti-Homosexuality Act 2023 remains in law without changes or steps toward repeal. “These are the steps Ugandan policymakers should be considering in order to future-proof their economy while creating a more liveable country for all citizens, not just those who are LGBTQ+,” the statement reads.
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