World Bank Cuts Off All Funding to Uganda over Anti-Homosexuality Law

World Bank Cuts Off All Funding to Uganda over Anti-Homosexuality Law

Uganda’s recent enactment of the Anti-Homosexuality Act has led to international concern and drawn a sharp response from the World Bank Group. The bank has stated that this law fundamentally clashes with its values, particularly its commitment to inclusion and non-discrimination based on race, gender, or sexuality.

The success of the World Bank’s mission to eradicate poverty and foster a livable planet hinges on the inclusion of all people. According to the bank, the Ugandan law threatens to derail these global efforts.

Review and Measures

In immediate response to the legislation, the World Bank deployed a team to Uganda to review its portfolio in the context of the new law. This review indicated that additional measures would be required to align with the World Bank’s stringent environmental and social standards.

The objective is to ensure protection for sexual and gender minorities from discrimination or exclusion in financed projects. No new public financing to Uganda will be considered by the Board of Executive Directors until the efficacy of these measures has been assessed.

Ongoing Commitment Despite Suspension

While cutting off all new funding, the World Bank also announced plans to significantly increase third-party monitoring and grievance redress mechanisms. This move will enable timely corrective action, reinforcing the principles of inclusion in its projects. Despite the challenges presented by the new law, the World Bank Group emphasizes its longstanding and productive relationship with Uganda.

Its commitment to helping Ugandans escape poverty, access vital services, and improve their lives remains strong. The bank’s actions serve as a clear testament to its resolve to uphold human rights and social justice, even in the face of challenging political and cultural dynamics.