Kampala – The East African investment environment is under scrutiny as concerns emerge about Uganda’s governance and transparency.
Recent developments, including cases of illegal detention and arrest of Vasundhara Oswal, an Indian Swiss businessman and a leading investor in the region, have brought attention to the need for stronger investor protection and regulatory oversight to ensure a stable business environment within the East African Community (EAC).
Uganda, a member of the EAC, is recognized as an emerging investment destination. However, recent challenges underscore the importance of legal protection and investor trust amid global human rights critique/violation and collapse of legal systems.
On October 1, 2024, Vasundhara Oswal was illegally detained and forced to be removed from the workplace without a warrant under unclear circumstances. During her detention, she faced difficult situations including lack of access to food, water, medical care and legal representatives.
Despite the release of the High Court Order and Uganda’s own neglected constitution, despite it being clearly illegal to be detained for more than 48 hours, she was detained for another 72 hours before being presented to Ruwelo Magistrates Court (located 65km north of the capital city of City Kampala), where even her pinnacle was slapped at Kaplittle fees without being charged.
She was held on charges of involuntary and intent to murder.
Even after the missing person was found, the Capitol charges were kept to her for another two weeks, where she was placed in prison for a murderer convicted in horrifying circumstances.
The charges were then retracted by the Prosecutor’s Director and replaced on December 16, 2024 with a misdemeanor charge. The family was clearly made to continue to force money from the family, and related videos were handed over to the lead investigator, Thomas Barre.
Such cases raise important discussions to strengthen the need and governance for a clear regulatory framework to support foreign direct investment (FDI) in Uganda and the broader EAC region. Some investors, including the Oswal family, have reassessed their commitment in Uganda.
Over the past few months, Uganda has been criticised worldwide for the mistreatment and incarceration of opposition leader Kiza Beshé Kifife, and has received widespread criticism against the son of Mufuji Kaynergaba, the son of the Ugandan president, for threatening online behavior towards other countries.
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“Talking about governance challenges not only improves investor confidence, but also ensures economic growth across the EAC.”
“EAC has a role to play in fostering a stable, predictable investment environment. Strengthening governance and legal protections will strengthen the economic reliability of the region and support long-term growth.”
Some investors, including the Oswal family, have reassessed their commitment to Uganda and instead chose to relocate their planned investments to Tanzania.
“This is not just the experience of one investor, it’s about ensuring a business environment that supports investment and economic development. A stable, transparent system benefits all stakeholders and promotes confidence in the future of the region. FDI will serve as a key contributor to economic expansion. Vasundhara Oswal.
