Kampala, Uganda: The World Bank has lifted its suspension on new financing to Uganda, nearly two years after halting support over the country’s controversial Anti-Homosexuality Act (AHA), which imposes harsh penalties, including death and life imprisonment, for same-sex acts.
The global lender announced Thursday that it had approved three new projects for Uganda in critical sectors, including social protection, education, and forced displacement and refugee management. The move signals a return to cooperation following months of behind-the-scenes negotiations and policy mitigation.
“We have now determined the mitigation measures rolled out over the last several months in all ongoing projects in Uganda to be satisfactory,” a World Bank spokesperson told Reuters via email. “Consequently, the Bank has prepared three new projects… which have been approved by the Board.”
The resumption marks a significant shift after the World Bank froze funding in August 2023, saying Uganda’s anti-LGBTQ+ legislation violated its core principles of inclusion and non-discrimination. The law, passed by Parliament and assented to by President Yoweri Museveni, prescribes the death penalty for “aggravated homosexuality” and up to 20 years in prison for “promoting” same-sex relations.
The bank said it had since worked closely with the Ugandan government to ensure safeguard mechanisms were in place to protect project beneficiaries and staff from discrimination or harm under the AHA.
Uganda is among the World Bank’s largest funding recipients in Africa, relying heavily on the institution for infrastructure projects, especially in transport, agriculture, and energy.
Despite global criticism, the Ugandan government has stood firm on the law, arguing it upholds local cultural values and national sovereignty. President Museveni has repeatedly dismissed external pressure, insisting that Uganda will not abandon its laws “because of foreign aid.”
The World Bank’s decision to resume financing comes amid mounting economic pressure in Uganda, with inflation easing but external borrowing tightening due to higher global interest rates and donor caution.
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