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Country Commercial Guides for FY 2000: Uganda Report prepared by U.S. Embassy Kampala, released July 1999   Note*

III. POLITICAL ENVIRONMENT

Nature of the Bilateral Relationship With the United States

The United States and Uganda enjoy excellent bilateral relations, highlighted by the visit of President Clinton to Ugandan in March 1998. In fiscal year 1999, the United States donated about $80 million to support Uganda's education and health efforts in addition to the democratization process, continuing economic reform, and humanitarian relief.

Major Political Issues Affecting Business Climate

The main political issues which affect the business climate in Uganda are corruption in government and business enterprises, active guerilla movements in the northern and western parts of the country, the party referendum, and land reform. In July 1999, Parliament passed a referendum bill that establishes a referendum to determine whether parties other than the "no-party" National Resistance Movement will be allowed to fully exist. The vote will occur in 2000. Land tenure has been changed by the Land Bill passed in early 1999. Nonetheless, the multiple types of land tenure and inadequate title registry still cause confusion. Foreigners can lease land, but cannot own it. Leases usually range from five to 99 years. Major changes to land law are being introduced, and should simplify the issue of tenure.

Brief Synopsis of Political System. Schedule for Elections and Orientation of Major Political Parties

Uganda promulgated a new Constitution in October 1995 and held a presidential election in May 1996, followed by parliamentary elections in June. The 1995 Constitution provided for a strong executive president, to be elected every five years, but with significant requirements for Parliamentary approval of presidential actions. The Parliament includes 214 directly elected representatives from geographical constituencies and special indirectly elected seats for representatives of women (39), youth (5), disabled (5), labor (3), and the Army (10). Under the transitional provisions of the new Constitution, the non-party "movement" system of government, including explicit restrictions on the activities of political parties, will continue for five years, with a referendum in the fourth year (2000) to determine whether Uganda will adopt a multiparty system of government.