Uganda Can Leverage South African Firms to Combat Xenophobia

Uganda’s historical solidarity with South Africa, marked by symbolic gestures like listing all African nations on post-independence passports, stands in stark contrast to the ongoing xenophobic attacks faced by Ugandans in South Africa. Despite thousands of Ugandans residing in South Africa and being victims of these recurring violent outbreaks, Uganda has largely relied on diplomatic protests, which have proven insufficient.

A more effective approach, the article suggests, is economic diplomacy. This involves strategically using economic leverage over major South African companies operating in Uganda, such as MTN, Stanbic, and Absa. By implementing rigorous tax audits, scrutinizing profit repatriation, and enforcing local content requirements and equity restructuring, Uganda can create significant pressure on these corporations.

The Ugandan government could compel these firms to increase local shareholding and source more goods and services domestically. Furthermore, enhanced regulatory oversight on spectrum allocation, banking licenses, and data protection, alongside stricter visa requirements for South African executives, could disrupt their operations. Exclusion from government bids and infrastructure projects could also be employed.

These measures, to be implemented within existing legal frameworks, would compel these influential corporations to lobby their home government to protect foreign nationals and ensure the safety of Ugandans. This strategy offers Uganda plausible deniability, allowing it to claim it is merely enforcing domestic regulations while achieving the critical geopolitical goal of protecting its citizens abroad.

While Uganda has provided support for returning citizens, including financial assistance and documentation processing, a proactive stance utilizing economic leverage could yield more sustainable results, mirroring Uganda’s past commitment to solidarity during the apartheid era. The article concludes that such measures are timely and necessary to protect Uganda’s sovereignty and diplomatic standing.

https://observer.ug/news/how-uganda-can-use-corporate-leverage-to-confront-xenophobia