World Bank Stops Loan Disbursement To Uganda Over Anti-Homos3xuality Law

World Bank has halted loan discussion and disbursement to Uganda’s government due to the East African country’s Anti-Homos3xuality Act 2023.

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

Anti-Homos3xuality 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-s3x relationships will not benefit from projects financed by the global financial institution.

According to the World Bank, Uganda’s Anti-Homos3xuality Act contradicts the financial institution’s values, which include the protection of s3xual and gender minorities from discrimination and exclusion in World Bank’s financed projects.

Consequently, the 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-Homos3xuality 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 s3xual 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.”