KAMPALA, Uganda – The World Bank has resumed financing to Uganda, nearly two years after suspending new funding over the country’s controversial Anti-Homosexuality Act (AHA), which drew global condemnation for imposing draconian penalties on LGBTQ+ individuals.
In a statement to Reuters on Thursday, a World Bank spokesperson said the lender had deemed Uganda’s mitigation measures against potential harm from the law to be “satisfactory,” clearing the way for new development financing to resume.
“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, adding that the bank had prepared three new projects targeting vulnerable sectors: social protection, education, and forced displacement/refugees.
The new projects have already been approved by the World Bank’s Board.
The bank had suspended new lending to the East African nation in August 2023, shortly after Uganda enacted one of the world’s harshest anti-LGBTQ+ laws.
The legislation prescribes life imprisonment for same-sex relations and the death penalty for so-called “aggravated homosexuality,” a charge that can include sex with a disabled person or transmission of a terminal illness.
The law also criminalizes the “promotion” of homosexuality, with offenders facing up to 20 years in prison.
At the time, the World Bank said the law was “fundamentally inconsistent” with its values, particularly those around inclusion and non-discrimination.
The freeze in funding dealt a significant blow to Uganda, which relies heavily on external financing, including from the World Bank, for infrastructure and development.
The decision to resume lending comes as Uganda continues to face economic headwinds and development gaps, particularly in education and social welfare.
Critics, however, may view the move as a retreat by the Bank on human rights principles, despite the continued existence of the AHA.
The World Bank did not provide further details on the nature of the mitigation measures Uganda has implemented, or how they would shield vulnerable populations from the impact of the law.
The Anti-Homosexuality Act has sparked ongoing concern from human rights organizations, foreign governments, and civil society groups, many of whom have called for its repeal.
Ugandan authorities have defended the law as a reflection of national values and cultural sovereignty, despite warnings from international partners about its impact on investment and aid.
