The World Bank has officially lifted its two-year suspension on loans to Uganda, a move that follows prolonged discussions and the implementation of mitigation measures aimed at protecting vulnerable groups like the LGBT.
The financing freeze, imposed in 2023, came shortly after Uganda passed the controversial Anti-Homosexuality Act, triggering widespread international condemnation. In response, the World Bank halted new funding to Uganda, causing disruptions in several key development projects.
While the suspension dealt a significant blow to Uganda’s economy—estimated to have cost the country between $470 million and $1.7 billion—President Yoweri Museveni repeatedly downplayed its effects. The President maintained that Uganda’s economy continued to grow, despite funding cuts from the World Bank and other partners, including the United States.
In a statement confirming the resumption of financial support, the World Bank emphasized its commitment to ensuring that all individuals, including LGBTQ communities, benefit from its development projects. The Bank noted that it has worked closely with the Ugandan government and other stakeholders to introduce anti-discrimination safeguards for future funding.
Newly approved funding will focus on key sectors such as social protection, education, and initiatives supporting refugees and displaced persons—areas seen as critical to both economic development and addressing human rights concerns.
As one of Uganda’s largest sources of external financing, the World Bank has historically supported major infrastructure projects, including road construction and electricity expansion, which remain essential for the country’s economic ambitions.
However, the Bank’s decision to lift the freeze has not escaped criticism. Some economists argue that the conditions tied to World Bank loans often foster dependency rather than sustainable growth in poorer nations. Others have raised concerns about the broader human rights implications, citing a growing wave of anti-LGBTQ legislation in parts of Africa, including Uganda, Ghana, and Kenya.
The Ugandan government has consistently defended its anti-homosexuality law, framing it as a reflection of the country’s conservative social values. Nonetheless, critics contend that the legislation is being used to divert public attention from pressing domestic challenges such as high unemployment rates and ongoing crackdowns on political opposition.
