US raises concerns over Uganda’s endemic corruption, human rights abuses

The United States has raised concerns over what it describes as endemic corruption, shrinking democratic space, human rights violations and weaknesses in public financial accountability in Uganda, warning that the challenges are undermining the country’s investment climate.

A US Department of State report identifies these among the major obstacles facing investors, despite Uganda’s continued economic growth and increasing foreign direct investment (FDI).

The 2026 Uganda Investment Climate Statement, published in September, says corruption, weak rule of law, human rights violations and restrictions on civic space are eroding Uganda’s attractiveness as an investment destination.

The report identifies corruption as a major impediment to investment, particularly in government procurement, where foreign companies have complained that some competitors secure contracts through bribery and disregard for environmental and labour regulations.

It also raises concerns about the treatment of politically connected individuals accused of corruption, saying that although Uganda has an established legal framework and several institutions mandated to fight graft, well-connected individuals often enjoy what it describes as de facto immunity.

“While anti-corruption laws extend to family members of officials and political parties, in practice many well-connected individuals enjoy de facto immunity for corrupt acts and are rarely prosecuted in court,” the report states.

The assessment acknowledges that Uganda has established a network of anti-corruption institutions and laws requiring bidders and contractors to disclose potential conflicts of interest when seeking government contracts.

However, it says implementation remains a major weakness. Although Uganda has ratified the United Nations Convention against Corruption, the report notes that the country does not provide adequate protection for non-governmental organisations investigating corruption.

Some watchdog organisations have also reported harassment by government agencies.

The report further questions the effectiveness of public financial oversight, particularly the government’s use of supplementary and classified budget accounts, which it says undermines parliamentary and public scrutiny of expenditure.

Although government budget documents and annual debt statistical bulletins are publicly available, the assessment says extensive reliance on supplementary and classified accounts, sometimes in violation of public finance laws, weakens accountability in the management of public resources.

On judicial independence, the report says corruption undermines the impartiality of the judiciary, while understaffing and a backlog of cases delay the resolution of disputes.

It also cites reports of high-ranking government officials influencing court decisions, raising concerns about the justice system’s ability to provide impartial remedies in disputes involving investors and government institutions.

The report notes that the Inspectorate of Government and the courts are mandated to oversee compliance with administrative procedures, but says corruption can weaken these oversight mechanisms.

Human rights and democratic governance also feature prominently in the assessment.

The report says opposition supporters frequently face restrictions on organising demonstrations and holding political rallies, despite constitutional guarantees of freedom of assembly, speech and expression.

It further cites reports of security forces arresting opposition supporters and detaining them beyond constitutionally mandated limits.

“Reports of torture allegedly perpetrated by elements within the official security forces persist,” the report states, adding that security agencies routinely use excessive force to suppress peaceful protests and demonstrations.

The assessment also links political uncertainty to the investment environment, noting that Uganda has never experienced a peaceful political transition.

It points to questions surrounding succession to President Yoweri Museveni, who won a seventh term in the January 2026 elections with 72 per cent of the vote, amid reports of political violence and restrictions on democratic institutions.

Speculation about the 2031 elections and the perceived absence of a succession plan, the report says, add to uncertainty for investors.

The assessment also highlights restrictions on internet access, including the continued ban on Facebook, which has been in place since January 2021.

Beyond governance concerns, the report identifies aggressive tax collection, rising public debt-servicing obligations, low public investment in health and education, shortages of skilled labour and complicated land tenure arrangements as additional challenges facing businesses.

It says foreign investors have complained about the aggressive pursuit of law-abiding private sector firms to meet revenue collection targets, while bureaucratic delays and inconsistent enforcement of regulations increase the cost of doing business.

However, the report acknowledges Uganda’s economic performance and continued ability to attract foreign capital.

The economy grew by 6.7 per cent in 2025, according to the International Monetary Fund, while foreign direct investment inflows increased by 8.8 per cent to a record $3.7 billion, largely driven by oil-related investments.

Industrial activity recorded the strongest growth, followed by agriculture, as investments in preparations for oil production continued.

Despite these gains, the US assessment suggests that sustaining investment will depend not only on economic opportunities but also on improvements in institutional accountability, the rule of law, transparency and the protection of rights.

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