Recently, the global lender relayed that it is working with Uganda to ensure that funding to the country resumes, albeit till Uganda eases the anti-gay laws.
According to the World Bank, as reported by Reuters, steps are being implemented to assure that recipients of loans from Uganda won’t face persecution due to the anti-gay laws.
A World Bank representative indicated that the measures, which include an independent monitoring mechanism to guarantee compliance, will apply to both existing and future projects.
“We will not propose any new public financing for Uganda to our board until we are satisfied that… mitigation measures are in place,” the bank said.
“These mitigation measures have been designed to ensure beneficiaries of bank-financed projects are not discriminated against and receive equal access to services,” it added.
LGBT groups demanded that the Washington-based global lender continue with the embargo for as long as the anti-gay law was in effect, according to a statement released this week.
“We are concerned that the World Bank’s mitigation measures are gravely flawed both in structure and substance,” more than 100 civil society groups said in an open letter sent to World Bank President Ajay Banga that was dated Sept. 16, as reported by Bloomberg.
They explained that among the holes were concerns about how the mitigation measures’ efficacy would be assessed and fears that the Ugandan government, which had approved the law originally, would be in charge of carrying them out.
The World Bank which has been one of Uganda’s largest financiers, withdrew their loan packages last year in response to Uganda’s anti-gay laws.
In a statement, the World Bank emphasized its unwavering dedication to inclusion and non-discrimination, stating that the new law runs counter to the organization’s core values.
Uganda’s anti-gay law
Uganda’s administration passed a harsh anti-gay bill into law in May 2023, sanctioning a life sentence and consolidating a rising campaign against LGBTIQ individuals in the traditionally conservative East African nation.
The law stipulates that having homosexual relations carries a life sentence in prison. A potential punishment of ten years in prison awaits anyone who attempts to enter into a same-sex relationship.
Months prior, the Ugandan government expressed a fierce opposition to same-sex marriage and the validity of the LGBTQ movement.
Yoweri Museveni, Uganda’s government shortly after the anti-gay bill was passed, approved a very controversial bill in April that included some of the toughest anti-LGBTQ laws in existence.
Shortly after the bill was passed, Uganda was faced with intense criticism from the international community, particularly the West, with some going as far as initiating sanctions against the country. The World Bank in this regard followed suit.
Ugandan authorities at the time accused the World Bank of double standards when it froze fresh funds, claiming that the global lender provided loans to countries in the Middle East and Asia that had comparable or even stricter restrictions against LGBTQ people.
In response to the debacle, the Ugandan president reassured his citizens that the country remains stable following US economic sanctions.
He noted that the country has been doing well since the United States exempted it from the $40 billion (about $10.5 million) African Growth and Opportunity Act (AGOA).
To rebuff this point, the World Bank itself admitted that Uganda was set to experience economic growth in 2024, despite the sanction, according to its report titled “The Global Economic Prospect 2024.”
The report showed that Uganda’s economic growth is set to go from 5.3% in 2023 to 6.0% in 2024.