World Bank Reverses Course on Loan Ban to Uganda Amid Controversial Anti-Gay Legislation

Tue Jul 29 2025 06:17:45 GMT+0300 (Eastern European Summer Time)
World Bank Reverses Course on Loan Ban to Uganda Amid Controversial Anti-Gay Legislation

World Bank reinstates funding to Uganda, altering previous stance on LGBTQ rights amidst ongoing human rights concerns.


In a significant policy reversal, the World Bank announced it would lift its two-year ban on loans to Uganda, originally instituted in response to the country’s extreme anti-LGBTQ legislation. Enacted in 2023, Uganda's law marked one of the harshest anti-homosexual legal frameworks globally, where individuals could face the death penalty for certain same-sex activities. This legislation led to a troubling surge in human rights violations, including evictions and violence against LGBTQ individuals.

Despite these concerns, the World Bank has expressed confidence in implementing "mitigation measures" that will protect and include LGBTQ communities in funded projects. This decision aligns with the organization's mission to foster equitable development and alleviate poverty worldwide. A spokesperson highlighted ongoing collaborations with the Ugandan government to introduce anti-discrimination strategies and approved new initiatives in sectors such as education and social protection.

Analysts recognize that the World Bank is a critical funding source for Uganda's infrastructure projects, with many arguing that its funding model tends to create dependency while stalling sustainable growth in developing nations. Uganda’s anti-gay legislation has drawn significant global condemnation, leading to substantial financial losses, estimated between $470 million and $1.7 billion due to halted funding. Critics claim the law serves as a diversion from pressing domestic issues like rising unemployment, while victims of the law report increased violence and discrimination against those perceived as LGBTQ.

As debates over LGBTQ rights in Africa intensify, Uganda's controversial legislation highlights the complex interplay between international finance, human rights, and local socio-cultural dynamics.

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