WASHINGTON, DC – The World Bank has recently declared a suspension of new loan disbursements to Uganda following the enactment of the country’s contentious anti-LGBTQ legislation. The decision, communicated on Tuesday, underscores the international financial institution’s commitment to upholding principles of equality and non-discrimination.
The Washington, DC-headquartered lender disclosed that it would temporarily halt funding for ongoing projects while undertaking a comprehensive assessment of the measures it had put in place to safeguard the rights of sexual and gender minorities from bias and marginalization within its initiatives.
In a formal statement, the World Bank articulated its stance, noting, “Uganda’s Anti-Homosexuality Act is fundamentally at odds with the core values of the World Bank Group. Our vision of eradicating poverty on a sustainable planet can only flourish through the inclusion of all individuals, regardless of their racial, gender, or sexual orientation. This law stands as an impediment to these endeavors. Inclusivity and the absence of discrimination lie at the heart of our global undertakings.”
As part of its response, the institution announced its intention to intensify third-party monitoring mechanisms and channels for addressing grievances, affirming its commitment to taking necessary corrective steps as warranted.
The World Bank Group had previously expressed reservations about the law in May, stating that it did not align with the organization’s principles and expressing deep concerns about its implementation.
Ajay Banga, who assumed the presidency of the World Bank in June, faced mounting pressure to address the legislation, with 170 civic groups urging for “specific, actionable, and timely measures,” including the suspension of future financial assistance.
The anti-LGBTQ law, which has drawn widespread condemnation from human rights organizations, prescribes severe penalties, including capital punishment for acts classified as “aggravated homosexuality,” which encompasses transmitting HIV through homosexual activity. Additionally, promoting homosexuality can lead to a 20-year prison sentence.
In a notable response, the United States imposed travel restrictions on Ugandan officials in June in direct opposition to the legislation, which received the signature of Ugandan President Yoweri Museveni.
Museveni, who has characterized homosexuality as a psychological disorder, has rejected international criticisms of the law, asserting its necessity as a means to prevent what he describes as attempts by the LGBTQ community to “recruit” individuals.
While temporarily suspending financing, the World Bank emphasized its unwavering commitment to assisting Uganda’s development objectives. The institution highlighted its longstanding and constructive partnership with the country, affirming its dedication to aiding all Ugandans in their pursuit of poverty alleviation, access to essential services, and overall improvement in their quality of life.