Uganda has been hit by a suspension of new loans from the World Bank, after the country passed a harsh law that criminalises same-sex relations and imposes the death penalty for some offences.
The World Bank said on Tuesday that it would pause project financing to Uganda, pending a review of the impact of the new legislation on its programmes and beneficiaries. The bank said that the law “fundamentally contradicts the World Bank Group’s values”, which include respect for diversity and inclusion.
The law, which was signed by President Yoweri Museveni in May, bans any form of sexual activity or expression of affection between people of the same sex. It also makes it a crime to “promote” homosexuality, and requires citizens to report anyone suspected of being gay to the authorities. Those found guilty of “aggravated homosexuality”, which includes having gay sex with a minor or while HIV-positive, face the death penalty.
The law has sparked international condemnation and outrage from human rights groups, who say it violates the rights and dignity of LGBT people and exposes them to violence and discrimination. Several countries, including the US, have imposed sanctions on Uganda over the law, such as visa bans, aid cuts, and travel warnings.
Uganda has dismissed the criticism as unfair and hypocritical, arguing that the law reflects the views and values of the majority of Ugandans, who consider homosexuality as unnatural and immoral. Uganda’s state minister for foreign affairs Okello Oryem accused the World Bank of double standards, saying that other countries with anti-gay laws did not face similar sanctions.
“Why pick on Uganda? There are many Middle East countries who do not tolerate homosexuals, they actually hang and execute homosexuals. In the US many states have passed laws that are either against or restrict activities of homosexuality… so why pick on Uganda?” he told Reuters news agency.
The World Bank had provided $5.4bn (£4.2bn) in development financing to Uganda by the end of 2022, mostly in health and education projects. The bank said that it would continue to support existing projects in Uganda, but would not present any new public financing to its board of executive directors until further notice.
The suspension of new loans could have a significant impact on Uganda’s economy, which relies heavily on external funding for its budget and development needs. The International Monetary Fund (IMF) also warned in June that it would impose stricter conditions on its lending to Uganda over the anti-LGBT law. The IMF approved the release of $120m to Uganda in June, but said that it would monitor the situation closely and assess the implications for its programmes.