KAMPALA – Uganda’s reputation as an attractive destination for foreign investment is under threat due to rampant corruption, experts warn.
The East African nation has been marred by high-profile cases of corruption, including the recent detention and arrest of Vasundhara Oswal, an Indian-Swiss businesswoman and key investor in the region.
Oswal was illegally detained and forcibly removed from her work site on October 1, 2024, without any warrants, under unclear circumstances. During her detention, she faced difficult conditions, including no access to food, water, medical care, and legal representation.
Despite a high court-ordered release and Uganda’s own disregarded constitution, which clearly states that a person cannot be detained for more than 48 hours, Oswal was held for an additional 72 hours before being presented to Luwero magistrate court, located 65 kilometers north of the capital city Kampala.
She was slapped with a capital charge without even a shred of evidence being presented against her. The charges alleged that Oswal was involved in the kidnapping and intent to murder Mr. Mukesh Menaria, a former employee of the Oswal family.
Even after the allegedly missing person was found, the capital charges were kept on Oswal for an additional two weeks, during which time she was still kept in a jail for convicted murderers in horrific conditions.
The charges were later withdrawn by the Director of Public Prosecutions and replaced with a misdemeanor charge on December 16, 2024. However, experts say that the incident has raised important questions about the safety and security of investors in Uganda.
The incident has also raised concerns about the role of corruption in Uganda’s justice system. A video of the main Investigation Officer, Mr. Baale Thomas, on the case, appears to show that the charges against Oswal were fabricated.
“Transparency and accountability are critical in maintaining the region’s attractiveness for global investors,” said a member of the Oswal family. “Addressing governance challenges will not only help improve investor confidence but also ensure that economic growth continues across the East African Community.”
The East African Community (EAC) has a role to play in fostering a stable and predictable investment environment, experts say. Strengthening governance and legal protections will reinforce the region’s economic credibility and support long-term growth.
Some investors, including the Oswal family, have opted to relocate planned investments to Tanzania, which is seen as offering a more predictable business landscape.
“This is not just about one investor’s experience. It is about ensuring a business environment that supports investment and economic development,” said Vasundhara Oswal. “A stable and transparent system benefits all stakeholders, fostering confidence in the region’s future.”
Uganda has faced widespread criticism for its human rights record, including the detention of opposition leader Kizza Besigye Kifeefe. The country has also faced criticism for the behavior of its military leaders, including the president’s son, Muhoozi Kainerugaba, who has been accused of making threatening statements online.
With foreign direct investment 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.
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