World Bank Suspends New Loans to Uganda Citing Concerns Over Anti-Gay Law.
The World Bank has decided to halt the issuance of new loans to Uganda due to the introduction of a new anti-gay law that contradicts the organization’s core principles.
Even before the enactment of this law in May, homosexual acts were already deemed illegal in Uganda. However, the recent legislation carries stricter penalties, including potential life imprisonment for those convicted.
Expressing their commitment to aiding all Ugandans in their pursuit of escaping poverty, accessing essential services, and enhancing their lives, the World Bank deemed the new law incompatible with their mission.
Uganda’s response to the World Bank’s decision has been one of rejection, labeling it as unjust and hypocritical. The country’s ambassador to the United Nations, Adonia Ayebare, took to Twitter, branding the move as “super draconian.” Ayebare urged for a reevaluation of the World Bank’s operational methods and the decisions made by its board.

The Anti-Homosexuality law in Uganda goes to the extreme of imposing the death penalty for cases considered “aggravated,” such as engaging in homosexual acts with minors or when a participant is afflicted with a life-threatening condition like HIV. After a recent investigative mission to Uganda in May, the World Bank issued a statement on Tuesday, asserting that the law directly contradicted the organization’s fundamental values. The World Bank’s vision is inclusive, encompassing individuals regardless of their race, gender, or sexual orientation.
In light of this incongruence, the World Bank declared that “no new public financing to Uganda will be presented to our Board of Executive Directors” while a comprehensive review of the effectiveness of new measures, in light of the recent legislation, is undertaken.
Uganda’s Minister for Foreign Affairs, Okello Oryem, raised questions about the consistency of the World Bank’s action in comparison to its stance on other nations. Oryem highlighted the existence of several Middle Eastern countries that penalize and execute homosexuals, and also pointed to laws in some US states that restrict or oppose homosexuality.
The new legislation has sparked condemnation from Ugandan advocacy groups, which have pursued legal avenues to challenge its discriminatory nature and its violation of LGBTQ+ rights. However, the commencement date for hearings remains uncertain.
The World Bank’s decision aligns it with the US in imposing sanctions against Uganda in response to the controversial Anti-Homosexuality law.