World Bank suspends Uganda funding over LGBTQ law

The World Bank has suspended approval of public financing in Uganda over its enactment of the controversial Anti-Homosexuality Act.

In a statement on August 8, the Washington based lender stated that it will halt the financing to review measures that had been put in place to protect the sexual and gender minority from discrimination.

World Bank stated that Uganda had contradicted its moral values of eradicating poverty without discrimination.

"Uganda's Anti-Homosexuality Act fundamentally contradicts the World Bank Group's values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality," the World Bank stated.

"This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world."

This follows a decision by President Yoweri Museveni to sign the Anti-homosexuality bill into law in May this year.

World Bank further said that it deployed a team to Uganda to review its portfolio in the context of the new legislation immediately after the law was enacted.

According to the lender, the review determined that projects should be aligned with their social standards and cover their goal of protecting sexual and gender minorities from discrimination and exclusion in their funded projects.

"No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested," the lender stated.

Uganda's Anti-Homosexuality Act of 2023 imposes capital punishment for "aggravated homosexuality" and penalties for consensual same-sex relations for up to life imprisonment and an alternative 20 years' imprisonment for promoting homosexuality.

In June, the US imposed travel restrictions on Ugandan officials in response to the move to assent the legislation.

Later in July, World Bank President Ajay Banga also faced pressure from several members of the United States Congress who urged him to "immediately postpone and suspend all current and future lending to Uganda".

However, the bank has maintained its commitment to providing assistance to Uganda despite the suspension of funding.

"The World Bank Group has a longstanding and productive relationship with Uganda; and we remain committed to helping all Ugandans without exception inescapable poverty, access vital services, and improve their lives," the statement added.