World Bank Suspends New Credits to Uganda Over Anti-LGBT Law
The World Bank announced yesterday that it is suspending new state financial projects in Uganda due to the government's adoption of a widely criticized law criminalizing same-sex relations, reports Bloomberg.
In its statement, the World Bank noted that Uganda's Anti-Homosexuality Act fundamentally contradicts the core values of the global development lender. No new state financing will be presented for approval by the bank's board of directors at this time, the statement added.
"Our goal is to safeguard sexual and gender minorities from discrimination and alienation in the projects we fund," the statement also mentioned, noting that this issue is being discussed with Uganda's authorities.
The World Bank's decision to halt new loans to Uganda comes after pressure from human rights organizations and members of the US Congress demanding a firmer stance.
In late July, several members of the US Congress called on World Bank President Ajay Banga to "immediately postpone and suspend all current and future loans to Uganda" until the law is repealed.
The bank's decision jeopardizes Uganda's plan to transform its economy and become an above-average income country by 2040. The World Bank's International Development Association portfolio for the country amounted to $5.4 billion USD by the end of 2022.
After the law was passed, the US State Department updated its travel advisories, advising citizens to "reconsider travel to Uganda due to crime, terrorism, and legislation against LGBTI+ persons."
Recalling in May, Ugandan President Yoweri Museveni signed the Anti-Homosexuality Act of 2023, which criminalizes same-sex behaviour, including the potential death penalty for those convicted of "homosexuality under aggravated circumstances." The law also imposes life imprisonment for anyone found guilty of homosexuality.
According to Human Rights Watch (HRW), this act violates "many fundamental rights guaranteed by Uganda's constitution and breaches commitments the government has made as a party to several international human rights agreements."
Previously, US President Joe Biden referred to Kampala's decision as a "tragic violation" of human rights and stated that Washington would assess the law's consequences for all aspects of US-Uganda interaction.