World Bank Tells Uganda No New Loans Over Anti-Gay Law

The World Bank has said it is halting all new public funding to Uganda over the country’s new anti-gay law. 

Uganda already criminalises homosexuality and in May 2023 the country enacted a new draconian anti-gay law that included the death penalty for “aggravated homosexuality”. 

Ugandan Anti-Homosexuality Act 2023 was slammed by world leaders including US President Joe Biden and UN Agencies. 

No New Loans

On Tuesday, the World Bank said that the new law contradicts the 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. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world,” World Bank said in a statement. 

The organisation said that it had deployed a team to Uganda after President Yoweri Museveni s signed the law in May 2023. 

“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 organisation said it was pausing all new loans to the country. “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,” World Bank said, adding, “Third-party monitoring and grievance redress mechanisms will significantly increase, allowing us to take corrective action as necessary.”

Uganda Points To Anti-LGBTQI Laws Passed By US States

@WorldBank⁩ is this why the board acted on suspending loans to Uganda? pic.twitter.com/Q7bQ66Qgod

— Adonia Ayebare (@adoniaayebare) August 9, 2023

Responding to the World Bank decision, President Museveni declared “Uganda will develop with or without loans.”

Adonia Ayebare, Uganda’s Ambassador and Permanent Representative of Uganda to the United Nations, in a tweet, accused the World Bank of “whimsical behaviour”. 

“The values referred to in taking this draconian decision against Uganda are not universal, they are contested. This makes the case for reform of work methods including the board more urgent and pertinent,” said Ayebare. 

Ayebare tweeted another image of a letter written by the US Congress to the World Bank against Uganda’s anti-homosexuality law. “Is this why the board acted on suspending loans to Uganda?” Ayebare questioned. 

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.

Uganda’s state minister for foreign affairs Okello Oryem told Reuters news agency that the World Bank was picking on Uganda. Oryem pointed to many US states passing laws against LGBTQI communities and laws in Middle Eastern countries, where homosexuality invites the death penalty. 

Stop Blaming LGBTQI Community

"I am deeply concerned about the consequences of Uganda's Anti-Homosexuality Act 2023. This law violates basic human rights and sets a dangerous precedent for discrimination and persecution against the LGBTQ+ community. Let us stand together in solidarity and fight against… pic.twitter.com/WnjWwBB6xU

— Steven Kabuye (@SteveKabuye5) May 29, 2023

Ugandan LGBTQI advocates welcomed the World Bank decision. 

“I support the World Bank move to halt loans and support to the Ugandan government,” Steven Kabuye Co-executive director of Ugandan LGBTQI organisation Truth To LGBTQ posted on social media. 

“The Anti-Homosexuality Act 2023 stands against the right of employment and promotes discrimination of employees that belong to the LGBTQI+ community. 

“The action made by the World Bank is going to act as an example to other institutions that have failed to penalise Uganda because of its human rights violations,” Kabuye said. 

The human rights activist also asked people to stop blaming the LGBTQI community. “Stop blaming activists and the Gay community for the wrongs done by your government,” Kabuye said on Twitter. 

The @WorldBank is an unavoidable partner in national development, their only rational ask, and as much that of sexual minority Ugandans however, is that we commit to shared values of Inclusion and non-discrimination by “shelving” the Anti-Homosexuality Act 2023. Video Courtesy,… pic.twitter.com/HKMFEfUkqL

— Sean Awali (@SeanAwali1) August 9, 2023

“The World Bank’s approach might be seen as a way of helping the Gay community in Uganda, but perhaps it also helps you as a common Ugandan. We celebrate the downfalls of those that celebrate our death. Stop blaming your consequences on us,” added Kabuye. 

Ugandan Anti-Homosexuality Act 2023, punishes so-called “aggravated homosexuality” with the death penalty. The definition of aggravated homosexuality, under the law, includes an HIV-positive person having gay sex with another person. The law also imposes a jail term of up to 20 years for those convicted of “promoting homosexuality. 

The UN Human Rights Office said that the new law was “a recipe for systematic violations of the rights of LGBT people & the wider population. It conflicts with the Constitution and international treaties and requires urgent judicial review.”