World Bank Puts Brakes on Ugandan Loans Over Anti-Gay Law

The World Bank has announced its decision to withhold consideration of new loans for Uganda following the country’s enactment of an anti-gay bill earlier this year.

The legislation, which has triggered condemnation from human rights groups and the international community, includes provisions that prescribe the death penalty for certain homosexual acts.

In response to the controversial law, the World Bank dispatched a team to Uganda to assess its potential impact on ongoing projects. The team determined that additional measures are required to ensure that these projects align with the bank’s established environmental and social standards.

A statement issued by the World Bank Group on Tuesday clarified its stance, stating, “No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested.”

The bank emphasized its goal of safeguarding sexual and gender minorities from discrimination and exclusion within the projects it funds, noting that ongoing discussions are underway with Ugandan authorities regarding these measures.

Despite the decision to withhold new loans, the World Bank affirmed its commitment to aiding all Ugandans in escaping poverty and accessing essential services for a better quality of life. The statement underscored that this commitment applies without exception.

Ugandan officials have displayed defiance in the face of concerns that international partners might withdraw resources due to the anti-gay legislation. The law has garnered support within the country, with some officials dismissing funding threats as inappropriate.

The United Nations Human Rights Office has characterized the Ugandan law as “draconian and discriminatory,” warning that it could lead to systematic rights violations against LGBTQ+ individuals and others.

The United States has also cautioned about potential economic repercussions stemming from the legislation.

While activists and certain academics have challenged the law in court, the timeline for hearings remains uncertain. Notably, homosexuality remains criminalized in over 30 of Africa’s 54 countries.