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Indian businesses face resistance in Uganda

A proposal for a company owned by Ugandans of Indian descent to grow sugar on a nature reserve sparked riots in the capital this month.

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A proposal by the government to allow a company run by Ugandans of Indian descent to grow sugar in one of the country's last tropical rainforests exploded this month, raising troubling questions about economic development and relations with Uganda's Indian minority.

Hundreds of rioters rushed the capital's center after a rally organized by two opposition members of parliament went awry on April 12.

The uproar left three people dead, including one Indian man stoned to death by a mob, and police had to rescue about 100 others of Asian origin. Thousands of dollars worth of property, mostly belonging to Indians, was destroyed.

The events have revived memories of 1972, when former dictator Idi Amin expelled the country's 75,000 Ugandans of Indian descent.

Bitterness lingers

Several thousand Indians have returned to Uganda since Mr. Amin was deposed, but they're still viewed with suspicion here, and often accused of being disrespectful of indigenous Ugandans and taking advantage of the local economy.

To them, the Indian-owned Mehta Group's effort to convert about one-fourth of the Mabira Forest into a sugar plantation is a case in point.

Some Ugandans also resent Indians' domination of many businesses, particularly small-scale retailing. Indeed, small-business owners of Indian descent bore the brunt of this month's outburst.

On April 12, demonstrators carried signs such as, "Asians should go" and "For one tree cut, five Indians dead."

Indians in Uganda, however, seem confident that this month's flare-up was an exception, not the rule. The government took a strong stance against the riot and assured members of the community it wouldn't happen again.

"All Indian businesses are open," says Sanjiv Patel of the Indian Community Association. "We have realized this is an isolated incident; you have a few rotten apples in every community."

"We are doing business and believe we are safe," says Jassani Kareem, an Indian owner of an electronics store and a supermarket, "though there is always that chance of danger."

War over the forest

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