Uganda faces a significant economic setback after the United States ousted it from the African Growth and Opportunity Act (AGOA).
President Joe Biden’s announcement in December 2023 outlined the removal, attributing it to Uganda’s “gross violations of internationally recognized human rights.”
In a letter to the US Congress Speaker in October 2023, President Biden signaled his intention to delist Uganda and three other African countries from AGOA, citing two primary reasons. The controversial Anti-Homosexuality Act 2023, widely criticized for violating human rights, and concerns over Uganda’s democratic governance progress were highlighted.
The Act, imposing severe penalties for same-sex relations, triggered international condemnation and served as the catalyst for Uganda’s AGOA expulsion.
Ugandan exporters, benefiting from duty-free access to the US market under AGOA for over 6,000 products, including apparel, textiles, and agricultural goods, now face tariffs of up to 17%. The removal of preferential treatment is impacting businesses, with reports of layoffs in garment factories and farmers seeking alternative markets for products like coffee and avocados.
The Ugandan government estimates an annual loss of up to USD 40 billion in export revenue, severely affecting the already fragile economy.
President Museveni’s government downplays the AGOA removal, emphasizing self-reliance, but experts warn of potential severe economic consequences, including increased poverty, unemployment, and social unrest. Human rights activists welcome the US decision as a strong stance against Uganda’s discriminatory laws, yet express concern about the disproportionate impact on ordinary Ugandans reliant on AGOA-driven businesses.
