Mild Financial Fallout From Uganda Anti-Homosexuality Act

Law360, New York (July 17, 2014, 4:04 PM EDT) -- With the passing of Uganda's Anti-Homosexuality Act on Feb. 24, 2014, the Ugandan government provoked sanctions and strong disapproval from Western donors who view the AHA as an affront to human rights. The AHA's stringent provisions are negatively impacting Uganda's foreign aid and health care sector, and are jeopardizing the physical safety of lesbian, gay, bisexual and transgender (LGBT) Ugandans. However, despite the withholding of funds by many Western donors and initial suspicions that foreign investors might boycott Uganda in response to the AHA, the broader economic implications of the act appear to be less significant. These relatively mild financial repercussions reflect the decreasing importance of foreign aid in emerging African economies like Uganda, as well as investors' hesitation to become embroiled in sociopolitical controversies concerning Africa's increasingly visible LGBT communities....

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