Victor EzejaThe World Bank has announced a decision to lift the ban on loans to Uganda after two years of suspending financing to the East African country.
The Bank imposed the ban after Uganda’s parliament passed the Anti-Homosexuality Act (AHA) in August 2023.
Join our WhatsApp ChannelThe law, which criminalised activities of LGBTQ people, reportedly drew the ire of the West and was also deemed to be against the values of the World Bank, prompting the suspension of new financing to the country.
In the wake of fresh discussions with Ugandan authorities, the bank is now ready to resume funding the country. A World Bank representative stated that the organisation is still dedicated to making sure that all communities, including LGBTQ people, gain from its initiatives.
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The Bank said future projects will incorporate safeguards to protect vulnerable groups. It has authorized new funds for education, social protection, and assistance for displaced and refugee people.
Reports indicate that the freeze cost Uganda between $470 million and $1.7 billion, but President Yoweri Museveni downplayed the impact, claiming that the economy was still robust in spite of international partners’ cuts.
One of the biggest external funding sources for Uganda, the World Bank, has contributed to the funding of infrastructure projects that are essential to the nation’s economic development, like expanding energy access and upgrading roads.
In defense of the anti-gay law, the Ugandan government has claimed that it embodies the values of the nation.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
