World Bank Halts Uganda Loans Over Anti-LGBTQ Law

The World Bank has made a significant decision regarding its financial relations with Uganda following the enactment of a contentious law targeting LGBTQ rights.

The international financial institution has declared its suspension of new loan considerations for Uganda due to the adoption of this law criminalizing same-sex relationships.

Earlier this year, the Ugandan government introduced a law aimed at curbing anti-LGBTQ practices within the nation. This legislation encompasses severe penalties, including life imprisonment and even the death penalty for those found guilty.

Expressing its strong opposition to the law, the World Bank issued an official statement on Tuesday, asserting that this legislation contradicts the core values of the global development lender. The organization’s vision of reducing poverty on a sustainable planet can only thrive when inclusivity prevails regardless of factors such as race, gender, or sexual orientation.

The World Bank’s statement emphasized its commitment to safeguarding sexual and gender minorities from discrimination and marginalization in projects financed by the institution. In light of the new law, the World Bank promptly dispatched a team to Uganda to assess the alignment of its portfolio with prevailing environmental and social standards. This review determined the necessity for additional measures to ensure compliance with these standards.

While the World Bank acknowledged the ongoing productive relationship it maintains with Uganda, it asserted that it will withhold presenting new public financing proposals to its board of executive directors until the efficacy of the additional measures has been evaluated. The institution plans to bolster third-party monitoring and grievance redress mechanisms to ensure corrective actions are taken whenever necessary.

Despite this development, the World Bank reiterated its unwavering dedication to assisting all Ugandans, without exception, in breaking free from poverty, accessing essential services, and enhancing their overall quality of life.