World Bank Stops Giving Of Loan To Uganda Over Anti-Homosexuality Law

World Bank Stops Giving Of Loan To Uganda Over Anti-Homosexuality Law

World Bank has halted loan discussion and disbursement to Uganda’s government due to the East African country’s Anti-Homosexuality Act 2023.

In May, Uganda’s President Yoweri Museveni signed a bill criminalising homosexuality or same-sex conduct in the country.

Anti-Homosexuality Act 2023 signed by Museveni also threatens the death penalty for persons convicted of homosexuality. Since the bill became law, there have been mixed reactions towards the decision.

In a statement released on Tuesday, the World Bank said it is concerned that the law will prevent persons involved in same-sex relationship will not benefit from projects financed by the global financial institution.

According to the World Bank, Uganda’s Anti-Homosexuality Act contradicts the financial institution’s values, which include the protection of sexual and gender minorities from discrimination and exclusion in World Bank’s financed projects.

Consequently, World Bank said no new public capital will be provided to Uganda or presented to the organisation’s Board of Executive Directors on behalf of the country until certain measures have been tested.

The statement reads in full: “Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world.

“Immediately after the law was enacted, the World Bank deployed a team to Uganda to review our portfolio in the context of the new legislation. That review determined additional measures are necessary to ensure projects are implemented in alignment with our environmental and social standards. Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently under discussion with the authorities.

“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.

“Third-party monitoring and grievance redress mechanisms will significantly increase, allowing us to take corrective action as necessary.

“The World Bank Group has a longstanding and productive relationship with Uganda; and we remain committed to helping all Ugandans—without exception—escape poverty, access vital services, and improve their lives.”