After nearly two years of suspension, the World Bank has announced it will resume funding to Uganda, following the implementation of mitigation measures addressing concerns related to the country’s controversial Anti-Homosexuality Act (AHA).
The global lender halted new financing to Uganda in August 2023, citing the AHA’s provisions, such as death and life imprisonment penalties, as fundamentally conflicting with the Bank’s core values and commitment to human rights.
The Anti-Homosexuality Act, passed by Uganda’s parliament in 2023, imposes harsh penalties, including the death sentence for “aggravated homosexuality,” which covers cases involving disabled persons or the transmission of terminal illnesses through same-sex relations. It also mandates lengthy prison sentences for those “promoting” homosexuality, raising serious human rights concerns internationally.
In a statement to Reuters, a World Bank spokesperson confirmed that after working closely with Ugandan authorities over several months, the institution found the mitigation measures implemented across ongoing projects satisfactory.
These measures are designed to minimize any adverse effects the law might have on development initiatives and vulnerable populations within Uganda.
As a result, the World Bank Board has approved three new projects targeting critical sectors: social protection, education, and forced displacement/refugees. These areas are vital to Uganda’s development agenda and highlight the Bank’s continued commitment to supporting the country’s growth while balancing ethical concerns.
The World Bank remains one of Uganda’s largest external financiers, particularly in infrastructure development such as transport.
The resumption of funding underscores a delicate balancing act addressing governance and human rights issues while maintaining support for essential development needs in the East African nation.
This decision is expected to influence not only Uganda’s economic trajectory but also the broader discourse on conditional financing tied to governance and human rights standards in developing countries.
