Deputy Speaker of Parliament, Thomas Tayebwa, has called on the European Union Parliament to expedite Uganda's removal from its anti-money laundering and terrorism financing grey list, a position the country has held since 2016.
Speaking in Brussels, Belgium, on Wednesday during a meeting with the EU Parliament's Deputy President, Antonella Sberna, Tayebwa emphasised the impact the continued listing has on Uganda's economy and investment opportunities.
Despite Uganda's efforts to amend multiple laws to meet EU delisting criteria, including a recent revision to the Anti-Money Laundering Act this month, the EU Parliament holds the authority to officially remove Uganda from the list.
The country's legislative body amended seven laws in a span of two weeks, in a bid to align with EU standards.
"The European Commission recognises Uganda's compliance, but only the EU Parliament can formally remove us from the grey list," Tayebwa said.
He added that the Financial Action Task Force (FATF) had already delisted Uganda from its own grey list in February 2024, but the country still remains under the EU's scrutiny.
Tayebwa further appealed for the EU Parliament to split a resolution that includes six countries, four of which meet delisting standards.
He argued that Uganda should not continue to suffer due to the non-compliance of other nations. However, the proposal to divide the resolution was rejected by the EU Parliament.
Uganda's continued grey list status has consequences for the nation's trade and investment climate.
Despite a $130.67 million trade surplus with the EU in 2024, Tayebwa pointed out that being on the list prevents Uganda from accessing cheaper financing and attractive investment opportunities.
During a recent meeting with EU investors and ambassadors, President Museveni was told that delisting would unlock more favorable investment conditions in Uganda.
Additionally, Otuke County legislator Paul Omara highlighted the negative impact on Uganda's credit rating, making it more challenging for the country to access credit from global financial institutions at favorable terms.
Uganda's Ambassador to Belgium, Mirjam Blaak, also voiced concerns from investors, particularly in Uganda's tourism sector, who have reported difficulties securing bank guarantees due to the grey list status.
Tayebwa also expressed concerns about the European Union's Regulation on Deforestation-Free Products (EUDR), which he warned could disproportionately affect smallholder farmers in Uganda and other developing nations.
He noted that Uganda's coffee industry, which relies heavily on small-scale farmers, could face severe setbacks as a result of this regulation.