World Bank Resumes Uganda Funding After Gay Rights Policy Change
The World Bank has reversed its two-year suspension and will resume lending too Uganda following assurances on LGBTQ protections.This decision comes after Uganda’s controversial anti-LGBTQ law triggered international condemnation and led to the halting of crucial loans. Now, with new “mitigation measures” in place, the world Bank aims to safeguard LGBTQ individuals within funded projects. These measures include social protection, education, and assistance for displaced people. news Directory 3 is following this developing story. Despite Uganda’s welcome, some economists remain wary of such lending practices. Will these measures truly protect the rights of LGBTQ people in Uganda? Discover what’s next.
World Bank resumes Uganda loans After LGBTQ protection Assurances
Updated June 06, 2025
The World Bank will resume lending to Uganda, reversing a two-year suspension triggered by the country’s stringent anti-LGBTQ legislation. The bank halted loans following the enactment of a law that imposed severe penalties, including the death penalty for certain same-sex acts.
Uganda’s 2023 anti-homosexuality act sparked international condemnation.Human rights organizations reported hundreds of LGBTQ individuals faced violence, evictions, and arrests. The World Bank, though, now expresses confidence that newly implemented “mitigation measures” will prevent discrimination against LGBTQ people in funded projects.
An unnamed World Bank spokesperson told Reuters that new projects have been approved in areas including social protection, education, and assistance for displaced people and refugees. The World Bank is a major source of external financing for Uganda, supporting infrastructure development such as road improvements and electricity expansion.
However, some economists argue that the World Bank and International Monetary Fund’s lending practices perpetuate dependency and hinder sustainable growth by imposing restrictive conditions on the world’s poorest nations.
Uganda’s Information Minister Chris Baryomunsi told AFP that the previous ban on lending was “uncalled for” and welcomed the World Bank’s decision. He claimed the anti-gay law does not target or discriminate against anyone, asserting that homosexuality is permitted “in private but not promoting it.”
“The World Bank cannot deliver on its mission to end poverty and boost shared prosperity on a liveable planet unless all people can participate in, and benefit from, the projects we finance,” a World Bank spokesman told AFP.
What’s next
The World Bank will monitor the implementation of mitigation measures in Uganda to ensure LGBTQ individuals are not harmed or discriminated against in projects it finances. The organization will continue to work with the Ugandan government and other stakeholders to uphold anti-discrimination measures.