World Bank Lifts Loan Ban on Uganda Over Gay Rights Concerns

The World Bank has announced that it is lifting a ban on loans to Uganda, imposed two years ago after the country passed a law against LGBTQ people. The bank has introduced new “mitigation measures” to ensure funding does not harm or discriminate against LGBTQ individuals. According to the World Bank, these measures will enable it to roll out funding while protecting vulnerable groups.

The decision comes after Uganda passed the Anti-Homosexuality Act in 2023, which imposes severe penalties for same-sex relations or “promoting” homosexuality, with some cases potentially facing the death penalty. The law has been widely condemned internationally, with estimates suggesting it cost Uganda between $470m and $1.7bn in frozen financing in the year following its implementation.

World Bank’s Rationale

A World Bank spokesman emphasized the organization’s commitment to inclusion, stating, “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 bank has worked with the Ugandan government and stakeholders to introduce anti-discrimination measures.

New projects have been approved in areas such as social protection, education, and forced displacement and refugees. The World Bank is a significant source of external financing for Uganda, playing a crucial role in infrastructure development, including road upgrades and widened electricity access.

Criticism and Concerns

Some economists criticize the funding model used by the World Bank and International Monetary Fund, arguing it perpetuates dependency and undermines sustainable growth in poor nations by tying them to restrictive loan conditions. Uganda’s government defends its anti-gay law, saying it reflects the conservative values of its people. However, critics argue the law is a distraction from real issues like high unemployment and ongoing attacks on the opposition.

As Oryem Nyeko, a researcher at Human Rights Watch in Uganda, noted, “It’s low-hanging fruit… It’s being framed as something that’s foreign and threatening to people’s children.” The law has emboldened attacks on individuals based on perceived sexuality, with victims reporting beatings, evictions, and other forms of violence.