The World Bank has officially resumed lending to Uganda, ending a nearly two-year suspension prompted by the country’s enactment of one of the world’s harshest anti-LGBTQ laws in 2023. The law includes the death penalty for certain same-sex acts and up to 20 years in prison for “promoting” homosexuality, sparking international outrage and sanctions.
Following its passage, Uganda faced a sharp backlash: international funding was frozen, and the country reportedly lost between $470 million and $1.7 billion in external support, according to the UK-based advocacy group Open for Business. Human rights organizations have documented hundreds of instances of eviction, assault, and arrest targeting LGBTQ individuals since the law came into effect. The World Bank said its decision to resume funding was based on new “mitigation measures” implemented in collaboration with the Ugandan government. A spokesperson said these safeguards are designed to ensure that bank-financed projects do not discriminate against or harm LGBTQ people.
“We cannot fulfill our mission to end poverty and boost shared prosperity unless all people can benefit from our projects,” the World Bank stated, adding that it had worked with government and civil society stakeholders to introduce and test anti-discrimination mechanisms. New World Bank projects focused on social protection, education, and refugee support have now been approved, according to statements given to Reuters and AFP. Uganda remains heavily reliant on World Bank funding for development, particularly in infrastructure such as roads and electricity access.
However, the move has drawn criticism. Some economists argue that institutions like the World Bank and IMF perpetuate dependency and limit long-term growth by enforcing restrictive lending terms. Critics also warn that the renewed funding could be seen as implicit approval of Uganda’s anti-LGBTQ stance. Despite widespread international condemnation, the Ugandan government maintains that the Anti-Homosexuality Act reflects the values of its society. Human rights groups disagree, arguing that the law is a political tool used to divert attention from pressing domestic challenges such as unemployment and political repression.
The government continues to deny that the law incites violence or targets human rights defenders. But many activists and victims say it has legitimized discrimination and emboldened attacks on LGBTQ individuals across the country.
