)
)
The World Bank has officially lifted its two-year freeze on loans to Uganda, which was imposed after the country passed the anti-gay law in 2023.
The law initially sparked international condemnation, prompting the World Bank to halt financing as a response.
This led to a significant disruption in funding for Uganda’s development projects.
However, following discussions and the introduction of mitigation measures, the World Bank is now set to resume lending to the East African nation.
)
)
)
Mitigation Measures and New Funding
A spokesperson from the World Bank said the organisation was committed to ensuring that all people benefit from the projects it finances, particularly LGBTQ individuals who have faced increased violence and discrimination under the law.
The World Bank has worked with the Ugandan government and other stakeholders to introduce anti-discrimination safeguards aimed at protecting vulnerable groups in future funding projects.
The World Bank has also approved new funding for key sectors, including social protection, education, and initiatives for refugees and displaced persons.
These sectors are seen as critical in improving Uganda's development outlook while addressing human rights concerns.
The World Bank’s decision comes after Uganda experienced a financial hit, with the country losing between $470 million and $1.7 billion due to the funding freeze.
President Yoweri Museveni, however, repeatedly dismissed the effects of the financing freeze by the World Bank and other partners such as the United States, noting that the Ugandan economy has continued to flourish nonetheless.
As one of the largest sources of external financing for Uganda, the World Bank has played a role in funding infrastructure projects, such as road upgrades and energy access expansions, which are crucial for the country’s economic growth.
International Reactions and Criticism
While the World Bank’s move to lift the loan freeze is seen as a step towards rebuilding Uganda’s economy, it has not been without criticism.
Some economists argue that the World Bank's lending model, which often comes with strict conditions, perpetuates dependency and hinders sustainable growth in the world’s poorest nations.
Critics also point to the growing trend of anti-LGBTQ legislation in African countries, including Uganda, Ghana, and Kenya, and its potential impact on human rights.
Uganda’s government has defended its anti-homosexuality law, stating that it reflects the conservative values of its people.
However, critics argue that the law is being used as a political distraction from more pressing issues, such as high unemployment and ongoing government crackdowns on the opposition.