The World Bank has lifted its suspension on funding to Uganda despite the country’s anti-LGBTQ law.
On Thursday, June 5, 2025, the World Bank stated that it plans to resume funding to Uganda, nearly two years after suspending financial support in protest of the country’s harsh anti-LGBTQ law.
“The World Bank collaborated with the Ugandan government and various stakeholders to design, enforce, and evaluate safeguards that ensure non-discrimination in projects it finances,” a spokesperson said in an emailed statement to Bloomberg.
The bank had suspended funding in August 2023, following the enactment of the Anti-Homosexuality Act (AHA), which introduced severe penalties, including life imprisonment and the death penalty, for same-sex relations.
World Bank Makes U-Turn on Uganda
Furthermore, the banking institution stated that it had conversed with Ugandan officials and has developed measures that will arise from the enforcement of the law.
Additionally, the bank plans to develop new projects in sectors with development needs, such as social protection, education, the transport sector and support for displaced persons and refugees.
Uganda relies heavily on the World Bank for external funding and support for its developmental projects.
Also Read: CEOs Offered Chance to Hire 45,000 Youths Under World Bank Funding
Funding Freeze Over Anti-LGBTQ Law
“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world,” read part of the World Bank Group Statement to Uganda.
The ban was imposed immediately after the Ugandan lawmakers enacted the anti-LGBTQ law.
Additionally, the banking institution clarified that future public financing for Uganda would remain on hold until the effectiveness of the newly implemented measures is assessed and review submitted to its Board of Executive Directors
Also Read: Kenyan Politicians Spend Ksh 2B More Than UN on Travel Allowances- World Bank
Reasons for Fund Freeze
The institution stated that after a considerable review, the law did not align with their goal, which was to protect sexual and gender minorities from discrimination and exclusion in the projects they finance.
However, the institution asserted that its long-standing and productive relationship with Uganda will remain.
“The World Bank Group has a longstanding and productive relationship with Uganda, and we remain committed to helping all Ugandans, without exception, escape poverty, access vital services, and improve their lives,” read the statement.
Follow our WhatsApp Channel and X Account for real-time news updates.
