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Khest Media > Actu > All > East Africa: FDIs in East Africa At Risk As Corruption in Uganda Comes Below Global Scrutiny
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East Africa: FDIs in East Africa At Risk As Corruption in Uganda Comes Below Global Scrutiny

AllAfrica
Last updated: 12/03/2025
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Kampala — The investment climate in East Africa is undergoing scrutiny as concerns emerge regarding governance and transparency in Uganda.

Present traits, including the case of the illegal detention and arrest of Vasundhara Oswal, an Indian-Swiss businesswoman and key investor in the reveal, possess introduced consideration to the need for stronger investor protections and regulatory oversight to construct certain that a stable business ambiance within the East African Community (EAC).

Uganda, a member of the EAC, has been is believed as an emerging investment destination. Nonetheless, fresh challenges highlight the importance of appropriate safeguards and investor confidence amidst global human rights criticisms/violations and a collapsing appropriate system.

On October 1st, 2024, Vasundhara Oswal used to be illegally detained and forcibly eliminated from her work reveal without any warrants, below unclear cases. During her detention, she faced complicated conditions, including no accumulate admission to to meals, water, sanatorium treatment, and appropriate representation.

In spite of a excessive court docket-ordered liberate and Uganda’s non-public uncared for structure, clearly making it illegal to be detained for more than Forty eight hours, she used to be held for another 72 hours sooner than being presented to Luwero magistrate court docket (positioned 65kms north of capital city-Kampala) and slapped with a capitol fee without even a pinnacle of evidence being presented against her.

She used to be being held on costs of kidnap and intent to abolish.

Even after the allegedly missing individual used to be found the capitol costs had been saved on her for another 2 weeks where she used to be unruffled saved in a jail for convicted murderers in horrific conditions.

After this, the costs had been withdrawn by the Director of Public Prosecutions and had been replaced with a misdemeanor fee on December 16, 2024. A member of the family indicated this used to be evidently finished to be succesful to continue to extort cash from the family, and a connected video has been handed to the the main Investigation Officer Thomas Baale.

Such incidents raise distinguished discussions in regards to the need for distinct regulatory frameworks and strengthened governance to beef up foreign enlighten investment (FDI) in Uganda and the broader EAC reveal. Some investors, including the Oswal family, possess re-evaluated their commitments in Uganda.

In the earlier few months, Uganda has been globally criticised for the mishandling and incarceration of the opposition leader Kizza Besigye Kifeefe and has also obtained huge unfold condemnation for essentially the most up-to-date militia head and son of President of Uganda, Muhoozi Kainerugaba, for the overtly threatening behaviour online in the direction of other international locations.

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“Transparency and accountability are critical in maintaining the region’s attractiveness for global investors. Addressing governance challenges will not only help improve investor confidence but also ensure that economic growth continues across the EAC,” opines a member of the Oswald family .

“The EAC has a role to play in fostering a stable and predictable investment environment. Strengthening governance and legal protections will reinforce the region’s economic credibility and support long-term growth.”

Some investors, including the Oswal family, possess re-evaluated their commitments in Uganda, opting instead to relocate planned investments to Tanzania, which is viewed as offering a more predictable business panorama.

“This is not just about one investor’s experience. It is about ensuring a business environment that supports investment and economic development. A stable and transparent system benefits all stakeholders, fostering confidence in the region’s future. With FDI serving as a major contributor to economic expansion, EAC nations can work collectively to strengthen investment conditions. Addressing governance concerns will support continued investor interest and regional growth, ensuring that East Africa remains a key destination for international business,” says Vasundhara Oswal.

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