Uganda’s economy faces significant upheaval as international partners withdraw their support and impose sanctions following the enactment of the Anti-Homosexuality Act 2023. The Democratic Governance Facility (DGF), a vital contributor of over UGX 500 billion to the Ugandan economy, has officially announced its exit, exacerbating the country’s economic predicament.
Last year, the DGF found itself blacklisted as it was accused of sympathizing with and funding the opposition National Unity Platform party, led by President Kyagulanyi Ssentamu Robert. Disturbed by intelligence reports suggesting the DGF’s alleged financial support for pro-LGBT NGOs, President Museveni was reportedly infuriated and frustrated. Consequently, he ordered the DGF to withdraw from the Ugandan economy, a directive that the organization has now confirmed.
The DGF, which pools funds from various international donors, is a major financial contributor to more than 60 Non-Governmental Organizations (NGOs), local governments, and agencies. These entities play a pivotal role in promoting the rule of law, human rights, good governance, civic education, and providing free legal aid services.
On Tuesday, the European Union in Uganda expressed their farewell to the DGF in a tweet, stating, “Saying goodbye is never easy. Today, we bid farewell to the Democratic Governance Facility @DGFUganda17, a unique multi-donor fund that brought government and citizens closer together, provided vital services to thousands and promoted #HumanRights.”
Adding to the growing concerns, the United Nations Human Rights Commission has also decided to close its offices in Uganda, marking the end of their presence in the country since 2005.
These departures come at a critical juncture as donors and development partners threaten to withdraw aid and support unless President Museveni repeals the contentious anti-homosexuality legislation. The potential withdrawal of financial assistance and reduced support from international stakeholders could have severe consequences for Uganda’s economy and development projects.
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