World Bank stops funding to Uganda over anti-gay law

The World Bank Group on Tuesday announced the suspension of funding to Uganda over the Anti-Homosexuality Act.  

Through a statement, the World Group said Uganda’s Anti-Homosexuality Act fundamentally contradicts its values, and that it believes its vision to eradicate poverty can only succeed if it includes everyone irrespective of race, gender, or sexuality.  

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“This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world,” it said.  The World Bank had provided $5.4 billion in International Development Association financing to Uganda by the end of 2022, including many health and education projects that could be affected by the new law. 

The existing portfolio will continue to disburse funds, even as new lending is put on hold, a World Bank source told Reuters.

World Bank further added that immediately after the law was enacted in May, it deployed a team to Uganda to review its portfolio in the context of the new legislation. With the passing of the law, Uganda became among the 32 states that have banned same sex relationships, according to International Lesbian, Gay, Bisexual, Trans and Intersex Association. 

Parliament passed the bill on March 21 and in April, President Museveni sent back the bill to the House for “strengthening” in line with Uganda’s “best practices”. 

“That review determined additional measures are necessary to ensure projects are implemented in alignment with our environmental and social standards. Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently under discussion with the authorities,” the statement added. 

The law, described as world’s harshest anti-LGBTQ legislation was condemned by Western countries and local as well as international human rights organisations. 

Amongst other provisions, the law stipulates capital punishment for “serial offenders” against the law and transmission of a terminal illness such as HIV-Aids through gay sex. It also decrees a 20-year sentence for “promoting” homosexuality. 

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. 

US President Joe Biden said the enactment of Uganda’s Anti-Homosexuality Act as tragic violation of universal human rights—one that is not worthy of the Ugandan people, and one that jeopardizes the prospects of critical economic growth for the entire country.  

“… the prospect of graver threats—including lengthy prison sentences, violence, abuse—threatens any number of Ugandans who want nothing more than to live their lives in safety and freedom,” White House said in a statement.  

Amnesty International said the signing of the law was a grave assault on human rights and the Constitution of Uganda and the regional and international human rights instruments to which Uganda is a party. 

“The Anti-Homosexuality Bill, 2023 will do nothing other than enshrine discrimination, hatred and prejudice against LGBTI Ugandans and their allies into law. It’s unconscionable that they risk losing their lives, their freedom, their privacy, their freedom of expression and their ability to live free from discrimination,” Flavia Mwangovya, Amnesty International’s Deputy Regional Director said. 

However, the government of Uganda condemned the Western response to the law, saying sanctions threats from donors amounted to “blackmail”. 

Information Minister Chris Baryomunsi rejected the condemnation, telling Reuters that they do not consider homosexuality as a constitutional right.  

“It is just a sexual deviation which we do not promote as Ugandans and Africans,” he told Reuters. 

“While we appreciate the support we get from partners, they must be reminded that we are a sovereign country and we do not legislate for the Western world. We legislate for our own people here in Uganda. So that kind of blackmail is not acceptable.” 

From the foregoing, World Bank says third-party monitoring and grievance redress mechanisms will significantly increase, allowing it to take corrective action as necessary. 

“The World Bank Group has a longstanding and productive relationship with Uganda; and we remain committed to helping all Ugandans—without exception—escape poverty, access vital services, and improve their lives,” it said.  

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