Uganda’s financial losses due to anti-gay policies are estimated at $586 million to $2.4 billion per year, affecting tourism, international aid, and trade.
- Business Insider Africa presents how much East African countries are losing to anti-gay discrimination.
- This is courtesy of Open for Business.
- LGBTQ discrimination already costs Kenya $360 million to $1.5 billion annually.
Across East Africa, anti-LGBTQ laws are more than just a human rights concern, they are also causing substantial economic losses.
Discrimination against LGBTQ individuals has led to reduced foreign investment, tourism declines, and cuts in international aid, costing the region billions of dollars each year.
A new study by Open for Business reveals that countries enforcing strict anti-LGBTQ policies, such as Kenya, Uganda, and Tanzania, are experiencing severe financial losses.
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Meanwhile, even nations with relatively lower levels of discrimination, like Rwanda, are still facing economic setbacks.
Here is how much each East African country is losing to anti-gay laws
Kenya ($360 million – $1.5 billion)
Kenya’s Family Protection Bill 2023 proposes harsh penalties, including up to 50 years in prison for same-sex acts. Property owners who allow same-sex activity could face a $14,000 (£11,000) fine or up to seven years in jail.
While LGBTQ discrimination already costs Kenya $360 million to $1.5 billion annually, experts warn that if the bill passes, losses could soar to $7.8 billion, as businesses withdraw, foreign aid declines and healthcare costs rise, worsening economic instability.
Uganda ($586 million – $2.4 billion)
Regarded as one of the worst laws in the world, the Anti-Homosexuality Act, signed into law by President Yoweri Museveni last May, has garnered international condemnation due to its severe penalties, including the possibility of a death sentence for “aggravated homosexuality.”
Last June, the United States put visa restrictions on Ugandan officials. Still, on the punitive trend, the World Bank suspended Uganda’s funding over human rights concerns tied to the anti-homosexuality law.
Uganda’s financial losses due to anti-LGBTQ policies are estimated at $586 million to $2.4 billion per year, affecting tourism, international aid, and trade.
Tanzania ($1.1 billion)
Tanzania has strict anti-LGBTQ laws with punishments including life imprisonment. Under former President John Magufuli (2015–2021), the government intensified crackdowns on LGBTQ individuals, shutting down HIV/AIDS clinics and arresting activists.
These policies have hurt the country’s reputation, discouraging foreign investment and tourism. Open for Business estimates Tanzania is losing up to $1.1 billion annually due to LGBTQ-related discrimination.
Rwanda ($45 million)
Rwanda is one of a handful of African nations that do not criminalise gay sex, and the country is a signatory to a U.N. statement condemning violence against LGBTQ+ people.
However, LGBTQ individuals still face social stigma and limited legal protections, which contribute to economic setbacks.
Despite positioning itself as a progressive investment hub, Rwanda is estimated to be losing up to $45 million annually due to barriers LGBTQ individuals face in employment, healthcare, and social inclusion.
