The World Bank has reinstated funding to Uganda nearly two years after halting new financial support due to the country's Anti-Homosexuality Act (AHA). The bank's decision to resume funding is based on the implementation of effective mitigation measures in current Ugandan projects to minimize potential negative impacts. Although Uganda's AHA has not been altered, this move reflects changing geopolitical dynamics among international financial institutions.
In 2023, the World Bank halted its funding to Uganda following the passage of the Anti-Homosexuality Act (AHA) by the country's parliament, citing a conflict with its values. The law drew widespread international criticism for imposing harsh penalties on LGBTQ+ individuals, including life imprisonment and, in certain instances, the death penalty. As reported by Reuters, the World Bank indicated that it had established a collaborative relationship with Ugandan authorities to implement effective measures to address the potential harm caused by the legislation.
"We have now assessed the mitigation measures implemented over the past few months in all ongoing projects in Uganda and found them to be satisfactory."
.jpg "World Bank reinstates funding for Uganda despite the contentious anti-gay legislation")
"As a result, the Bank has developed three new projects in areas with significant development needs—social protection, education, and forced displacement/refugees—which have received Board approval," stated a Bank spokesperson who wished to remain anonymous.
The decision to resume funding marks a shift in the bank's engagement strategy with Uganda and raises broader questions about how global institutions balance the promotion of human rights with the maintenance of development partnerships.
Although there have been no indications of changes to Uganda's legal stance on LGBTQ+ rights, the World Bank's renewed support may reflect broader geopolitical and economic considerations in the region.
Global Reactions to Uganda’s Anti-Gay Law
In May 2023, Uganda enacted the Anti-Homosexuality Act (AHA), which introduced severe criminal penalties for same-sex relationships, including life imprisonment and, in cases labeled as “aggravated homosexuality,” the death penalty.
The law faced immediate and widespread condemnation from Western governments, human rights organizations, and international bodies, earning a reputation as one of the most severe anti-LGBTQ+ laws globally.
In addition to the World Bank suspending its funding, several Western nations issued strong criticisms and took actions that impacted Uganda’s international standing.
The United States spearheaded the diplomatic response, with the Biden administration calling the law “a tragic violation of universal human rights.” Consequently, Washington imposed travel restrictions on Ugandan officials involved in the legislation and began reviewing its financial aid to the country.
The European Union condemned the law, highlighting its conflict with international human rights standards and indicating that it would reevaluate its relationship with Uganda. Similarly, the UN High Commissioner for Human Rights described the legislation as “shocking” and “discriminatory,” calling for its immediate repeal.
In addition to official government responses, Western-based human rights organizations, NGOs, and civil society groups amplified the global outcry. Advocacy campaigns were initiated to pressure the Ugandan government, while some multinational corporations expressed concerns about the law's potential effects on their employees and business operations in the country.
Despite this international criticism, Ugandan officials welcomed the recent restoration of World Bank funding, framing it as a validation of the country’s sovereignty and development agenda.
The restoration of aid occurs alongside ongoing discussions regarding the capacity and limitations of international financial institutions in holding governments accountable for alleged human rights abuses.
