World Bank resumes funding to Uganda after 2-year freeze triggered by anti-LGBT law

The World Bank has announced the resumption of funding to Uganda, nearly two years after suspending financial support in response to the country’s controversial Anti-Homosexuality Act (AHA), which prescribes severe penalties, including life imprisonment and the death sentence, for same-sex relations.

 

 

 

The suspension, imposed in August 2023, followed Uganda’s parliamentary approval of the AHA, which drew global condemnation for what critics described as a violation of human rights and international norms. At the time, the World Bank said the legislation was in direct conflict with its core values and halted new project financing as a result.

 

 

 

 

In a statement to Reuters on Thursday, June 5, a World Bank spokesperson confirmed the decision to restore funding, citing the implementation of adequate safeguards in ongoing projects. “We have now determined the mitigation measures rolled out over the last several months in all ongoing projects in Uganda to be satisfactory,” the spokesperson said.

 

 

 

As part of the resumption, the Bank has greenlit three new development projects in key sectors including social protection, education, and support for refugees and internally displaced populations. These projects have been approved by the institution’s board and are expected to address urgent developmental needs in the country.

 

 

 

 

The World Bank remains one of Uganda’s largest external financiers, particularly in infrastructure and transport. The funding freeze had cast uncertainty over several government projects and prompted debate over donor influence on national legislation.

 

 

 

The AHA, signed into law by President Yoweri Museveni, introduced among the world’s harshest penalties for homosexuality. It includes the death penalty for what the law terms “aggravated homosexuality”, acts involving individuals with disabilities or cases where HIV is transmitted during same-sex relations. The law also prescribes up to 20 years’ imprisonment for “promoting” homosexuality.

 

 

 

The decision to reinstate funding comes amid continued international criticism and growing domestic scrutiny of the law’s implementation. While the World Bank did not explicitly endorse the legislation, its latest move marks a significant policy shift, highlighting a complex balance between development needs and human rights concerns.

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