Uganda Roundup: US sanctions, human rights abuse, decline in foreign exchange

Decline in foreign exchange

Uganda's foreign exchange reserves have experienced a notable decline of 4.3% over the past three months, concluding July with a total of $3.3 billion. This amount is sufficient to cover approximately three months of imports, a decrease from $3.5 billion recorded in April. The decrease has been attributed to several factors, including increased external debt payments, challenges in securing affordable external loans, and limited foreign exchange purchases. In response to these economic challenges, the Bank of Uganda is actively purchasing gold to diversify its reserves, Zawya reports.

Funding for hydropower plan

Uganda is taking proactive measures to address its rising energy demands by seeking funding for the construction of three new hydropower plants. These projects—comprising the 840 MW Ayago, 400 MW Kiba, and 392 MW Oriang—are anticipated to add over 1,600 MW of capacity, resulting in an 80% increase in the nation’s total power capacity, which will reach 3,678 MW. This initiative is underscored by an annual power demand growth rate of 10%, as reported by energy official Wamala Julius Namusanga. Currently, hydropower accounts for nearly 85% of Uganda's electricity supply, with the commissioning of its largest plant—a 600 MW facility funded by China, reports Zawya.

UBA Uganda rejects management crisis rumours

UBA Uganda has firmly denied accusations of a management crisis, affirming that Chioma A. Mang, the current Managing Director, is set to assume expanded responsibilities within the UBA Group effective from October 1, 2024. According to The Independent, plans to announce a new Managing Director are underway, with the bank underscoring a commitment to corporate governance and clarifying that the leadership transition is part of a strategic development plan rather than indicative of any issues within the work environment. Established in 2008, UBA Uganda has successfully expanded its operations nationally.

Fresh US sanctions

In a significant move, the U.S. has imposed sanctions on four Ugandan police officers—Bob Kagarura, Alex Mwine, Elly Womanya, and Hamdani Twesigye—prohibiting their travel to the U.S. This action is a direct response to their involvement in grave human rights violations, including acts of torture. The sanctions derive from credible civil court reports and data provided by human rights organisations, highlighting the U.S. commitment to upholding human rights standards in Uganda, adds the Monitor.

Calls to decriminalise homosexuality

The Uganda Human Rights Commission has made a compelling call for the decriminalisation of homosexuality, stressing the unjust punishments that arise from such criminalisation, particularly affecting vulnerable groups. This request follows the controversial enactment of the Anti-Homosexuality Act, which is currently under appeal and was signed into law by President Yoweri Museveni in May 2023. As reported by Watermark, commission chair Mariam Wangadya stressed the necessity for universal human rights protection in Uganda, free from discrimination. In a gathering with rights organisations, Wangadya acknowledged the critical issues confronting LGBTQ and intersex communities, highlighting the government's failure to recognise intersex individuals as a protected minority group.