The World Bank has announced it is lifting a two-year loan suspension on Uganda, imposed following the country’s enactment of some of the world’s harshest anti-homosexuality legislation in 2023. The move has sparked controversy and concern from human rights groups, who argue that the situation for LGBTQ Ugandans remains dire.
Uganda’s Anti-Homosexuality Act, passed last year, prescribes the death penalty for certain same-sex acts and a 20-year prison sentence for “promoting” homosexuality. Since its implementation, Uganda’s Human Rights Awareness and Promotion Forum (HRAPF) reports that hundreds have faced eviction, violence, and arrest due to their sexual orientation or gender identity.
Despite these ongoing abuses, the World Bank now says it is satisfied that “new mitigation measures” will prevent its funds from contributing to harm or discrimination against LGBTQ individuals. A spokesperson stated that the Bank had worked closely with the Ugandan government and local stakeholders to implement anti-discrimination safeguards.
The Bank’s renewed engagement includes new funding in areas such as education, social protection, and refugee assistance. While the World Bank emphasized its commitment to inclusive development, critics argue the reversal undermines the international community’s stance on human rights.
Analysts highlight the World Bank’s significant role in Uganda’s development, particularly in infrastructure projects like road upgrades and electricity expansion. Yet, others criticize the Bank’s and International Monetary Fund’s approach, saying their lending models foster dependency and constrain true economic independence through restrictive conditions.
Uganda’s anti-LGBTQ law drew global condemnation and caused the country to lose an estimated $470 million to $1.7 billion in aid and investment, according to the UK-based charity Open for Business. While the government claims the law aligns with traditional Ugandan values, critics argue it is a political diversion from pressing issues such as unemployment and political repression.
Human rights advocates warn that the resumption of World Bank funding may send a dangerous message that economic interests can outweigh fundamental human rights. As Oryem Nyeko of Human Rights Watch put it, the legislation is “low-hanging fruit,” used to stoke fear and distract from deeper governance failures.
