How Uganda can use corporate leverage to confront xenophobia

What the report says

The Observer published an analysis arguing that Uganda could use its economic influence over South African companies operating in the country to press Pretoria for stronger action against recurring xenophobic attacks on Ugandans and other African migrants. The article frames the issue against Uganda’s historical support for South Africa’s liberation struggle, including its refusal to recognize apartheid-era South Africa on post-independence passports until apartheid ended in 1994.

According to The Observer, official figures put formally documented Ugandans in South Africa at about 50,000, while the African Centre for Migration and Society has recorded more than 40 major attacks on immigrants in eight of the past 13 years. The article says Uganda has largely relied on diplomacy and has not applied sustained public pressure, despite deaths, injuries and displacement linked to anti-immigrant violence.

The proposed measures include tighter tax and transfer-pricing audits, stricter oversight of profit repatriation, local ownership and procurement requirements, tougher scrutiny of telecoms and banking approvals, visa restrictions for South African executives, and possible exclusion of South African entities from some state contracts. The companies named include MTN, Stanbic, Absa and Sanlam Allianz. The Observer presents these steps as a form of economic diplomacy intended to make South African firms lobby their own government to protect foreign nationals.

Uganda’s ambassador to South Africa, Paul Amoru, told The Observer that recent evacuations of vulnerable Ugandans were voluntary and precautionary, and that South Africa had condemned the attacks and increased security. He said three Ugandans had been killed, with Uganda supporting repatriation and funeral costs, and that more than 1,000 returnees had been enrolled at Kyankwanzi with Sacco support. The South African embassy in Kampala did not respond to The Observer’s request for comment.