Uganda’s anti-gay bill spurs fallout with the US and a loss of Ush741 billion ($200 million)

• US businesses halt textile purchases from Uganda due to the Anti-Homosexuality Act 2023.
• President Museveni of Uganda downplays the impact, stating losses are outweighed by textile sales elsewhere.
• The US Embassy has warned of economic repercussions as multinational companies express concerns over anti-gay legislation.

Due to the passing of Uganda's anti-gay bill, a number of US businesses covered by the Africa Growth Opportunity Act (Agoa) have ceased doing business with Uganda.

Specifically, several US companies under the Africa Growth Opportunity Act (Agoa) have halted textile purchases from Uganda.

President Yoweri Museveni made this announcement at the passing-out ceremony for Uganda Prisons Service officials on Sunday in Kampala's Kololo Ceremonial Grounds.

According to a report seen in the East African, an East African news publication, The president of Uganda stated, “The homosexuals in the US are interfering with our export of textiles. Some of the orders have been canceled there.

“But I am not concerned about that because the money you have been squandering with the second-hand clothes, importing other people’s fabrics, is much more than what we are going to earn from the sales to the US,” he added.

Following reports of increased recruitment of Ugandans by gay groups, especially students, Parliament, urged on by religious leaders and constituents, passed the Anti-Homosexuality Act 2023 in early May.

President Museveni signed it into law weeks later, prompting protests and condemnation from Western capitals, including Washington, with several governments considering actions.

In response, President Joe Biden ordered a review of US relations with Uganda, with Secretary of State Antony Blinken stating that Uganda's eligibility for Agoa was under reconsideration.

So far, the Biden administration has only imposed visa restrictions on the Speaker of Parliament, Ms. Anita Among.

Agoa is a US government project that was started in 2000 that allows qualifying nations, such as Uganda, to export textiles and agricultural products to the US without any tariffs or quotas. In exchange, the recipient nations open their markets to used clothing, primarily from the US.

Under the trade incentive, Uganda's yearly exports were worth $200 million (Ush741 billion). The public affairs adviser at the US Embassy in Kampala, Ms. Ellen Masi, said that Washington had made it plain that the passage of the anti-gay bill would have an impact on Uganda's economic prospects.

“On March 28, more than 35 major multinational companies, including those with operations and employees in Uganda, released a statement highlighting the negative repercussions the anti-gay law will have on their ability to do business in Uganda,” she said.

She claims that nine out of every ten Fortune 500 corporations uphold anti-discrimination rules that exclude individuals based solely on their sexual orientation. “So, the enactment of the anti-gay law could deter foreign companies from doing business here in Uganda,” Masi added.

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