World Bank Suspends Funding For Uganda Amid Anti-Gay Law

Following the enactment of an anti-gay bill earlier this year in Uganda, which has been widely criticized by rights groups and various stakeholders, the World Bank has announced its decision to refrain from entertaining new loan applications from the East African nation.

In response to the law’s implementation in May, the World Bank dispatched a team to Uganda, concluding that supplementary actions were imperative to guarantee project adherence to the bank’s environmental and social norms.

“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 World Bank Group said in a statement on Tuesday.

The anti-gay legislation, which includes provisions for the death penalty in certain cases of homosexual acts, was enacted in May. Despite facing international concern, including potential resource withdrawals from partners like the World Bank, the law enjoys significant domestic backing. Ugandan officials have maintained a defiant stance, with some asserting that the warnings of funding withdrawal are unwarranted.

Ugandan finance authorities, who have been diligently pursuing new funding from the nation’s leading multilateral lender for an extended period, were not immediately available for comment.

The World Bank’s statement emphasized that, despite the recent decision, their commitment to aiding all Ugandans without exception in breaking free from poverty, accessing essential services, and enhancing their quality of life remains steadfast.

The U.N. Human Rights Office has said the Ugandan law is “draconian and discriminatory,” describing it as “a recipe for systematic violations of the rights” of LGBTQ+ people and others. The U.S. has warned of economic consequences.

Activists and certain academics have taken the legal route to challenge the law in court, yet the timing for the commencement of hearings remains uncertain..

Homosexuality is considered a criminal offense in over 30 out of Africa’s 54 countries, includes Nigeria.