Washington D.C. / Kampala – The World Bank has announced it is lifting a two-year ban on loans to Uganda, which was imposed after the East African nation enacted a highly restrictive anti-LGBTQ law.
In 2023, Uganda passed legislation that includes some of the world’s harshest penalties for same-sex relations, with certain acts potentially carrying a death sentence. Since the law’s implementation, hundreds of individuals have reportedly faced eviction, violence, or arrest due to their sexuality, according to Uganda’s Human Rights Awareness and Promotion Forum.
Despite these concerns, the World Bank stated its confidence that new “mitigation measures” will enable it to disburse funds in a manner that avoids harming or discriminating against LGBTQ individuals. A spokesperson for the organisation told AFP news agency that the World Bank “cannot deliver on its mission to end poverty and boost shared prosperity on a liveable planet unless all people can participate in, and benefit from, the projects we finance.” The spokesperson added that the World Bank had “worked with the [Ugandan] government and other stakeholders in the country to introduce, implement and test” anti-discrimination measures.
Unnamed World Bank sources also confirmed the approval of new projects in “social protection, education, and forced displacement and refugees.”
Analysts note that the World Bank is a significant source of external financing for Uganda, playing a crucial role in its infrastructure development, including road upgrades and expanded electricity access. However, some economists broader criticise the funding models of institutions like the World Bank and the International Monetary Fund, arguing they can foster dependency and hinder sustainable growth in poorer nations by attaching restrictive loan conditions.
Uganda is one of several African countries, alongside Ghana and Kenya, that have recently seen legislative efforts to curtail the rights of LGBTQ individuals.
News of Uganda’s Anti-Homosexuality Act in 2023 drew widespread international condemnation. Estimates by the UK-based charity Open for Business suggest the law cost the country between $470 million and $1.7 billion (£347 million and £1.2 billion) in its first year, primarily due to frozen international financing.
The Ugandan government maintains that the anti-gay law reflects the conservative values prevalent among its population. Critics, however, argue the legislation serves as a diversion from pressing domestic issues such as high unemployment and ongoing crackdowns on political opposition. Oryem Nyeko, a researcher with Human Rights Watch in Uganda, commented to CBC at the time that the issue is “low-hanging fruit,” framed as “something that’s foreign and threatening to people’s children.”
Victims have reported increased attacks, including beatings and evictions, fueled by the new law. Concerns have also been raised that the provision for a 20-year prison sentence for “promoting” homosexuality targets those who advocate for LGBTQ rights, though the government disputes this interpretation.
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