(Bloomberg) -- Uganda’s anti-LGBTQ laws that include the death sentence in some cases have cost the nation as much as $1.6 billion since being introduced in May last year, a new study found.
The losses from the legislation, which includes life imprisonment for certain sexual acts and the death penalty for “aggravated homosexuality” — defined in part as engaging in sex if one is HIV-positive — include foreign direct investment, international aid, trade and tourism and could total as much as 3.2% of gross domestic product, Open for Business said in a report.
The organization, which is a coalition of global companies including American Express Co., AT&T Inc., and Virgin Group Ltd., conducts research into the business development and economic effects of anti-gay policies.
Combined losses over a five-year period could rise to a range of $2.3 billion to $8.3 billion as flights in human capital and talent — together with the expense of policing and legal processes — add to the other costs, the study found.
The estimated direct cost of reduced FDI could range between $40 million and $75 million annually and from international aid $276 million to more than $1 billion, according to the research. The Anti-Homosexuality Act “has significantly strained Uganda’s international relations, including donors like the World Bank suspending funding,” it said.
In August 2023, the World Bank — long Uganda’s biggest provider of budget support — halted new loans to the East African nation, saying the act contradicts its values. The Washington-based lender is currently working with the country to restore the funding.
LGBTQ rights are increasingly under pressure in Africa. More than 30 African nations have criminalized consensual same-sex sexual activity, and others are considering similarly worded legislation to that passed by Uganda, according to Amnesty International.
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In June, Malawi’s Constitutional Court upheld a law that makes same-sex conduct a criminal offense. On Tuesday in Ghana, hundreds of people took to the streets of the nation’s capital, Accra, asking the country’s top court to speed up implementation of an anti-LGBTQ bill.
While Uganda has already made significant losses due to the introduction of the act, these will only worsen should the AHA remain in law without any changes or steps toward repeal, Open for Business said in a statement.
“These are the steps Ugandan policymakers should be considering in order to future-proof their economy while creating a more liveable country for all citizens, not just those who are LGBTQ+,” it said.
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(Updates with estimates on direct cost of reduced FDI in fifth paragraph.)
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