World Bank restores funding to Uganda despite controversial anti-gay law

Business Insider

06-06-2025

The World Bank has restored funding to Uganda nearly two years after suspending new financing in response to the country's Anti-Homosexuality Act (AHA).
The World Bank has resumed funding to Uganda after a two-year suspension instigated by the Anti-Homosexuality Act (AHA).
The Bank justified resumption through effective mitigation measures within ongoing Ugandan projects to limit potential adverse impacts.
While Uganda's AHA remains unchanged, the decision signals shifting geopolitical dynamics by international financial institutions.
The World bank in 2023, suspended funding to Uganda after the country's parliament passed the Anti-Homosexuality Act (AHA), saying the law contradicted its values.
The legislation sparked international condemnation for imposing severe penalties on LGBTQ+ individuals, including life imprisonment and, in some cases, the death penalty.
According to Reuters, the World Bank said it had developed a working relationship with Ugandan authorities to implement strong measures aimed at mitigating potential harm resulting from the law.
" We have now determined the mitigation measures rolled out over the last several months in all ongoing projects in Uganda to be satisfactory,"
" Consequently, the Bank has prepared three new projects in sectors with significant development needs – social protection, education, and forced displacement/refugees, which have been approved by the Board." said a Bank spokesperson, who requested anonymity.
The decision to resume funding signals a shift in the Bank's engagement strategy with Uganda and raises broader questions about how global institutions navigate the tension between promoting human rights and maintaining development partnerships.
While there has been no indication of changes to Uganda's legal position on LGBTQ+ rights, the World Bank's renewed support may reflect wider geopolitical and economic considerations in the region.
How the world reacted to Uganda's Anti-Gay Law
Uganda's Anti-Homosexuality Act (AHA), signed into law in May 2023, imposed sweeping criminal penalties for same-sex relationships, including life imprisonment and, in cases of so-called 'aggravated homosexuality,' the death penalty.
The law drew swift and widespread condemnation from Western governments, human rights organizations, and international institutions, and was widely regarded as one of the harshest anti-LGBTQ+ laws in the world.
Beyond the World Bank's suspension of funding, several Western governments issued strong rebukes and implemented measures affecting Uganda's international standing.
The United States led the diplomatic response, with the Biden administration describing the law as 'a tragic violation of universal human rights.' In turn, Washington imposed travel restrictions on Ugandan officials believed to be involved in the legislation and initiated a review of its financial assistance to the country.
The European Union also condemned the law, emphasizing its incompatibility with international human rights norms and warning that it would reassess its relationship with Uganda.
Similarly, the UN High Commissioner for Human Rights called the legislation 'shocking' and 'discriminatory,' urging its immediate repeal.
Outside of official government action, Western-based human rights organizations, NGOs, and civil society groups amplified the global outcry.
Advocacy campaigns were launched to pressure the Ugandan government, while some multinational corporations voiced concern about the law's potential impact on employees and business operations in the country.
Despite this international backlash, Ugandan officials have welcomed the recent restoration of World Bank funding, portraying it as an endorsement of the country's sovereignty and development agenda.