The World Bank has lifted its two-year suspension on lending to Uganda, which followed the enactment of an anti-homosexuality law in 2023.
Following negotiations with Ugandan officials, the bank is now set to resume funding. A World Bank representative said the organisation remains committed to ensuring all communities benefit from its projects, including LGBTQ individuals.
Measures have been introduced to protect vulnerable groups in future projects. The bank has approved fresh funding for social protection, education, and support for refugees and displaced persons.
According to to reports, Uganda suffered financial losses estimated between $470 million and $1.7 billion due to the freeze, but President Yoweri Museveni dismissed its impact, saying the economy remained strong despite cuts from international partners.
As one of the largest sources of external financing for Uganda, the World Bank has played a role in funding infrastructure projects, such as road upgrades and energy access expansions, which are crucial for the country’s economic growth.
The Ugandan government has defended the anti-gay law, arguing that it reflects the country’s value.
