news 31 October 2026 The Observer (Uganda)

US Report Highlights Corruption, Human Rights Concerns in Uganda

A recent United States Department of State report warns that endemic corruption, human rights violations, and weak rule of law are threatening Uganda's investment climate. Source: https://observer.ug/news/us-raises-concerns-over-ugandas-endemic-corruption-human-rights-abuses

The United States has raised concerns over what it describes as widespread corruption, shrinking democratic space, and weaknesses in public financial accountability in Uganda. According to the 2026 Uganda Investment Climate Statement, these governance challenges are undermining the country’s attractiveness as an investment destination, despite ongoing economic growth and rising foreign direct investment.

The report points out that while Uganda has established legal frameworks to combat graft, well-connected individuals often enjoy de facto immunity and are rarely prosecuted. Foreign companies have also complained about unfair competition in government procurement, where some rivals allegedly secure contracts through bribery.

Furthermore, the assessment criticizes the heavy reliance on supplementary and classified budget accounts, which weakens parliamentary oversight and public scrutiny. Observers note that corruption and political interference continue to compromise judicial independence and delay the resolution of commercial disputes.

On the democratic front, the report highlights restrictions on opposition political activities, persistent allegations of torture by security forces, and limitations on freedom of expression, including the ongoing ban on Facebook. These political uncertainties, combined with aggressive tax collection and complex land tenure rules, add operational challenges for businesses.

Despite these governance hurdles, Uganda’s economy continues to show resilience. The country recorded solid economic growth and an increase in foreign direct investment inflows, largely driven by oil-related developments. However, US officials emphasize that sustaining long-term investment will require significant improvements in institutional transparency, the rule of law, and the protection of human rights.

Read more details in the source report.