The World Bank says it will suspend fresh loans to Uganda due to the country’s contentious anti-LGBTQ law.
The Washington, DC-based lender announced that it will halt project financing while it reviews procedures it implemented to protect sexual and gender minorities from discrimination and exclusion in its projects.
“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values,” the lender said in a statement.
“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,” it added
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The lender will also increase third-party monitoring and grievance redress mechanisms “allowing us to take corrective action as necessary,” it said.
The World Bank Group stated in May that the law was inconsistent with the lender’s ideals and that it was “highly concerned” about its implementation.
With 170 civic groups seeking “specific, concrete, and timely actions,” including the suspension of future funding, World Bank President Ajay Banga, who entered office in June, under pressure to respond to the law.
Human rights organizations have harshly criticized the anti-LGBTQ law, which carries the death penalty for “aggravated homosexuality,” which includes HIV transmission through gay intercourse, and a 20-year prison sentence for “promoting” homosexuality.
In response to the legislation, which was approved by Ugandan President Yoweri Museveni, the US put travel restrictions on Ugandan officials in June.
Museveni, who has described homosexuality as a psychological condition, has dismissed foreign condemnation of the legislation, which he has defended as necessary to prevent the LGBTQ community from attempting to “recruit” individuals.
