New study: Uganda lost billions due to anti-LGBTQ+ law

A recent study suggests that Uganda lost over $1.6 billion (£1.2 billion) in the first year following the enactment of its anti-LGBTQ+ law in May 2023. Described as one of the most severe pieces of anti-LGBTQ+ legislation globally, the law even includes the death penalty.

The Anti-Homosexuality Act 2023 was signed by Ugandan President Yoweri Museveni in May last year. Although same-sex relationships were already criminalised due to colonial-era laws, the new legislation introduced some of the harshest penalties worldwide for those found guilty.

The law stipulates life imprisonment for engaging in same-sex sexual relationships, and the death penalty for “aggravated homosexuality”, which includes having sex while HIV positive. Furthermore, advocating for LGBTQ+ rights can result in up to 20 years in prison.

The legislation’s impact on LGBTQ+ individuals has been severe, leading to job loss, evictions, and familial estrangement. Moreover, it has significantly harmed the nation’s economy, as ‘Yahoo! News’ writes. . According to a report from Open for Business, a coalition of global businesses advocating for inclusion, the law has cost Uganda between $470 million (approximately £360 million) and $1.6 billion (approximately £1.2 billion) in its first year.

The economic losses encompass foreign direct investment, international aid, trade, and tourism. Soon after the law’s implementation, the World Bank, Uganda’s largest budget support provider, suspended new loans to Uganda, stating that the law conflicted with its values.

Additionally, the legislation worsens public health issues, exacerbating the crisis and leading to annual losses. It also increases policing and legal enforcement costs and results in a loss of human capital as individuals flee the country to escape persecution.

This trajectory is expected to alter the country’s economic course in the coming years, with projected losses between $2.3 (approximately £1.8) and $8.3 (approximately £6.4) billion over five years. Open for Business states that the Anti-Homosexuality Act 2023 hinders Uganda’s ability to “foster a dynamic and diversified modern economy that is attractive to investors, tourists, and skilled workers.” The coalition remarked that although Uganda has already faced significant economic setbacks, the situation will deteriorate further if the Anti-Homosexuality Act 2023 remains unchanged or is not repealed. “These are the steps Ugandan policymakers should be considering to future-proof their economy while creating a more liveable country for all citizens, not just those who are LGBTQ+,” the statement says.