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Uganda's Anti-Homosexuality Act Costs Exceed $2.2 Billion

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  Published in Politics and Government on Sunday, March 22nd 2026 at 13:14 GMT by Washington Blade
      Locale: UGANDA

By Anya Sharma | March 22nd, 2026

Two years after the passage of Uganda's Anti-Homosexuality Act in 2023, the economic repercussions are proving far more severe than initially anticipated. A follow-up report released today by Development Economics and Policy (DEP) estimates the cumulative economic loss to Uganda now exceeds $2.2 billion, significantly higher than the $1.6 billion figure reported in late 2024. The escalating economic damage demonstrates the long-term consequences of prioritizing discriminatory legislation over sustainable economic growth.

The initial DEP report, released shortly after the law's implementation, highlighted declines in tourism, foreign investment, and international aid. This new assessment reveals those declines have solidified into sustained losses, with little indication of recovery while the Act remains in effect. The report paints a grim picture of a nation increasingly isolated economically, facing dwindling resources for vital public services like healthcare and education.

Tourism in Freefall

The tourism sector, once a bright spot in Uganda's economy, continues to hemorrhage revenue. While the initial impact was felt through cancellations of pre-booked trips, the DEP report now details a fundamental shift in travel patterns. Western nations, traditionally the largest source of tourist income for Uganda--attracted by its wildlife, landscapes, and cultural heritage--have seen a sustained 70% decrease in visitor numbers. Travel advisories remain in place across much of Europe and North America, explicitly citing concerns about the safety and legal vulnerability of LGBTQ+ travelers, but also implicitly signaling broader concerns about the rule of law and human rights within Uganda. The loss extends beyond direct tourism revenue, impacting associated industries like hospitality, transportation, and local crafts.

Foreign Investment Dries Up

The climate of uncertainty created by the Anti-Homosexuality Act has proven profoundly detrimental to foreign direct investment (FDI). Several multinational corporations have publicly announced the postponement or cancellation of planned projects in Uganda. These aren't isolated incidents, but rather reflect a wider trend. The DEP report identifies a chilling effect on investor confidence, with companies expressing concerns about reputational risk, potential legal challenges, and the long-term viability of operating in a country perceived as hostile to certain groups.

"Investors are increasingly prioritizing countries with stable legal frameworks and demonstrable commitments to human rights," explains Dr. Eleanor Vance, lead economist at DEP. "Uganda's legislation sends a clear signal that it is willing to sacrifice economic growth in favor of discriminatory policies. This is simply not attractive to businesses operating in a globalized world."

Beyond large-scale projects, the report also notes a significant drop in smaller-scale investments from diaspora Ugandans, who are now hesitant to repatriate funds given the political and social climate. This loss of investment capital further exacerbates Uganda's economic woes.

Aid Cuts and the Social Cost

The reduction in international aid continues to severely strain Uganda's public services. Donor countries, including the United States, the European Union, and several Scandinavian nations, have either suspended or significantly reduced aid packages tied to human rights conditions. This has resulted in cuts to critical programs in areas such as healthcare, HIV/AIDS prevention, and education. The DEP report estimates that these aid cuts have directly impacted access to essential services for millions of Ugandans, disproportionately affecting vulnerable populations.

Political Stalemate and Future Prospects The Ugandan President, Yoweri Museveni, continues to defend the Anti-Homosexuality Act, framing it as a defense of "traditional values." However, legal challenges to the law have been repeatedly dismissed, and international pressure shows no sign of abating. Experts warn that unless the law is repealed, Uganda risks becoming increasingly marginalized on the global stage.

The DEP report concludes with a stark warning: the economic costs of the Anti-Homosexuality Act are unsustainable. It urges the Ugandan government to prioritize economic pragmatism over ideological rigidity, arguing that a welcoming and inclusive society is essential for long-term prosperity. Without a significant policy shift, Uganda's economic future remains bleak, with the potential for further decline and social unrest.