Uganda dismissed as "laughable" a US warning on Tuesday regarding the risks associated with conducting business in the East African nation.

In a Monday advisory, the US State Department cautioned prospective investors about "endemic corruption" and the nation's disregard for human rights.

It came after Washington revised its travel advisory earlier this year in response to Ugandan President Yoweri Museveni's enactment of a harsh anti-gay law.

"Businesses, organisations, and individuals should be aware of potential financial and reputational risks resulting from endemic corruption," the warning stated.

It additionally warned of "violence against human rights activists, media members, health workers, members of minority groups, LGBTQI+ persons, and political opponents."

Uganda's Anti-Homosexuality Act in May infuriated Western powers, LGBTQ activists, human rights organizations, and the UN.

As the World Bank declared it would no longer be making new loans to Uganda, US President Joe Biden demanded that the policies be immediately reversed and threatened to withhold aid and investment from the nation.

According to Transparency International's Corruption Perceptions Index, Uganda is ranked 142nd out of 180 countries.

Godfrey Kabbyanga, Uganda's junior minister of information, advised US investors to disregard the State Department's caution.

"Advisories of such nature are laughable because they do not match what is on the ground," he told AFP.

"This is not the first time our American friends are issuing such negative advisories on Uganda. But Uganda has not collapsed and instead as a country we are moving stronger and stronger."

The US advisory cited the anti-gay law as one of the risks associated with conducting business, stating that it "exacerbates issues regarding the respect for leases and employment contracts and increases restrictions on human rights, to include restrictions on freedom of expression and peaceful assembly."

However, Kabbyanga downplayed worries regarding the legislation, which is among the strictest in the world and includes provisions that can result in life in prison for consensual same-sex relationships and making "aggravated homosexuality" a capital offense.

He claimed the law was "in the best interest of our country and our people and not for any other country or entities, and Ugandans are happy with it."