Africa

Uganda funding suspended by World Bank over LGBTQ law

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Uganda funding suspended by World Bank over LGBTQ law
World Bank./Photo Courtesy

Due to Uganda’s adoption of the contentious Anti-Homosexuality Act, the World Bank has temporarily halted its approval of public financing in that country.

The Washington-based lender announced on 8 August that it will pause the financing while it reviews the steps taken to protect sexual and gender minorities from discrimination.

According to the World Bank, Uganda had transgressed its moral principles of eliminating poverty without prejudice.

“The World Bank Group’s values are fundamentally at odds with Uganda’s Anti-Homosexuality Act.”  The World Bank declared, “We think that our ambition to eradicate poverty on a livable planet can only succeed if it embraces everyone, regardless of color, gender, or sexuality.”

“This law undercuts those initiatives. Our work is centered on inclusion and against discrimination anywhere in the world.” added World Bank.

The World Bank added that soon after the law was passed, a team was sent to Uganda to assess its portfolio in light of the new regulations.

The analysis found that initiatives have to be in line with their social standards and address their purpose of safeguarding sexual and gender minorities from prejudice and exclusion in their sponsored projects, the lender claimed.

“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,” the lender said.

According to Uganda’s Anti-Homosexuality Act of 2023, “aggravated homosexuality” is punishable by the death penalty, while consenting same-sex relationships are punishable by up to life in prison. Promoting homosexuality is punishable by an alternative 20-year sentence.

In response to the legislation’s assent, the US placed travel restrictions on Ugandan officials in June.

Later in July, a number of US Congressmen put pressure on World Bank President Ajay Banga to “immediately postpone and suspend all current and future lending to Uganda.”

Nevertheless, despite the suspension of funds, the bank has remained committed to helping Uganda.

The statement said, “The World Bank Group has a long-standing and fruitful engagement with Uganda; and we are committed to helping all Ugandans, without distinction, escape inescapable poverty, access essential services, and better their lives.

Author

Milton Nyakundi

Milton Nyakundi is a veteran multimedia journalist with over 20 years of experience across broadcast, digital, and print media, who relocated to the United States in 2022 and is now the Senior International Correspondent for Kurunzi News based in Washington, DC, USA. He has previously worked with the Kenya Broadcasting Corporation (KBC), among other high-profile roles with Kenya's first privately-owned media outlet - Kenya Television Network. His experience also include prominent roles as Media Consultant for Football Kenya Federation (FKF), and StarTimes Kenya. His career spans high‑stakes political reporting covering legislative and constitutional issues, elections, governance, and accountability across Kenya, Africa, and global arenas. He also boasts extensive sports journalism experience, covering local and international sports events, including leagues, tournaments and sports governance. He is well-known for his investigative depth, editorial leadership, and evidence-driven journalism that guides his consistent delivery of public‑interest storytelling across platforms.

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