UGANDA — On June 5, 2025, the World Bank announced the resumption of new financing to Uganda, nearly two years after suspending such activities in response to the country’s Anti-Homosexuality Act (AHA). The AHA, enacted in May 2023, imposes severe penalties for same-sex relations, including life imprisonment and the death penalty for certain offenses categorized as “aggravated homosexuality.” The World Bank halted new lending in August 2023, citing the law’s contradiction with its commitment to non-discrimination and inclusion in development projects.
Implementation of Mitigation Measures
Following the suspension, the World Bank collaborated with Ugandan authorities to develop and implement measures to prevent discrimination in projects funded by the institution. These measures included establishing independent monitoring mechanisms and integrating anti-discrimination safeguards into project frameworks. After several months of evaluation, the World Bank determined these mitigation strategies were satisfactorily implemented across ongoing projects.
Resumption of Funding and Focus Areas
With the assessment deeming the mitigation measures effective, the World Bank approved three new development projects in Uganda. These initiatives focus on social protection, education, and support for displaced persons and refugees — sectors with significant development needs. The resumption of funding is intended to address critical gaps in these areas while ensuring adherence to the World Bank’s non-discrimination policies.
Economic Impact and International Response
The suspension of World Bank funding and other international financial responses to the AHA had a notable economic impact on Uganda. Estimates from the British organization Open for Business indicated that Uganda lost between $586 million and $2.4 billion annually due to frozen financing and related economic consequences. The Ugandan government welcomed the resumption of funding, with officials describing the initial suspension as “uncalled for.”
Ongoing Legal and Social Context
Despite implementing mitigation measures in World Bank-funded projects, the AHA remains in effect in Uganda. The law has faced legal challenges, and in April 2024, Uganda’s Constitutional Court upheld significant portions of the act, including provisions imposing severe penalties for same-sex relations. Some sections were struck down for violating privacy and health rights, but the core elements of the law persist. International human rights organizations and several governments continue to express concern over the law’s implications for LGBTQ+ individuals in Uganda.
Final Comments
The World Bank’s decision to resume lending to Uganda follows the implementation of measures to ensure non-discrimination in its funded projects. While this move addresses specific concerns related to project implementation, Uganda’s broader legal and social environment concerning LGBTQ+ rights remains a point of international attention and debate.
According to GhanaWeb, the World Bank’s shift marks a significant development in the relationship between donor institutions and governments with controversial human rights records.
