THE World Bank has announced the introduction of new measures to ensure that recipients of its loans in Uganda are not discriminated against, following the country’s enactment of a controversial anti-gay law. These measures, which include independent monitoring mechanisms, will apply to both ongoing and future projects funded by the bank.
Uganda passed the Anti-Homosexuality Act (AHA) in May 2023, sparking international condemnation. The law criminalises same-sex relations, with life imprisonment for those found guilty of same-sex intercourse and the death penalty for ‘aggravated homosexuality’. This law has drawn strong criticism from Western nations, leading to sanctions from the United States and a suspension of new loans from the World Bank.
World Bank suspends new loans to Uganda
The World Bank, one of Uganda’s largest funders, especially in areas like infrastructure and energy, halted all new lending to Uganda last year, citing the AHA as contradictory to its core values. The suspension has significantly impacted Uganda’s financial outlook, as the country heavily relies on the bank’s support for its development projects.
‘We will not propose any new public financing for Uganda to our board until we are satisfied that appropriate mitigation measures are in place,’ the World Bank said, reiterating its stance against discrimination.
Concerns from LGBT activists
While the World Bank’s decision has been met with cautious optimism, some LGBT activists in Uganda argue that the bank’s mitigation measures do not go far enough. Richard Lusimbo, a leading figure at Convening for Equality (CFE), a Ugandan LGBT rights organisation, criticised the measures, calling them ‘a façade’ that only gives the illusion of protection for vulnerable communities.
Activists have called for the World Bank to maintain the funding suspension as long as Uganda’s anti-gay law remains in effect. In a statement, they expressed fears that without stronger action, the bank’s funding could indirectly support a government enforcing discriminatory policies.
Ongoing financial implications
The World Bank’s decision to pause new loans to Uganda continues to place financial strain on the nation, especially in the context of vital infrastructure projects. As the bank is a key financier of Uganda’s road and energy development, the suspension has significant economic consequences.
Moving forward, the World Bank will only resume lending once it is confident that safeguards are fully implemented, ensuring that no groups are excluded or discriminated against in the disbursement of funds.
With the introduction of these new safeguards, the World Bank is walking a fine line between maintaining its commitment to non-discrimination and providing essential support to Uganda’s development efforts.
Credit: AFB
