How has Uganda's anti-gay law affected its economy?

The bill imposing the death penalty on gay and trans people in Uganda drew reaction from the whole world. The New York Times wrote that the reactions to the Anti-Homosexuality Law affected the country's economy.

Simon Azarwagye, the owner of Azas Safaris, starts telling the story that makes him unhappy by pointing at the numbers on the computer screen. Showing the demand graph on his computer, Azarwagye states that he has 89 potential customers this year. All of these potential customers he contacted in early 2023 asked questions about safari tours to the lush forests of Uganda. Safari trips where hippos and gorillas are observed for 13 days cost 15 thousand dollars per couple. But that was before we started debating Uganda's harshest anti-LGBTQ+ law in the world.

This law includes the death penalty for homosexuality and makes it a crime to advocate homosexuality in public. News about the draft law in Uganda was covered in international media. Immediately after the bill was passed in May, US President Joe Biden and European leaders threatened sanctions against Uganda.

Within weeks, 60 of Azarwagye's 89 potential customers canceled their reservations and did not respond to messages. Most of these customers came from Europe and the USA. “They ignored me,” Azarwagye said. "Several people who spoke to me said it was not safe to come to Uganda because of the law," he said.

According to a report by human rights group Convening for Equality, since the passage of the Anti-Homosexuality Law 2023, officially known as the Anti-Homosexuality Law 2023, LGBTQ+ people have been arrested and there have been hundreds of human rights violations. Gay and trans individuals were evicted by their landlords as required by law. Gay and trans individuals cannot receive health care due to the fear of being reported to the police. The law also imposes a terrible economic cost.

Hoteliers say the hospitality industry is suffering. Textile manufacturers also say that buyers in the USA, UK and Europe have canceled orders. The country's construction companies say Western investors are afraid of the law. “We met face to face with an American company and one of the guys running the company made it clear he had a moral problem with the law,” said Venugopal Rao, CEO of Dott Services, a construction company in Uganda's capital Kampala. We may receive money for our projects in Tanzania and the Democratic Republic of Congo. But we cannot get it for Uganda,” he said.

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