BUNNU LAW FALLOUT! World Bank turns off money taps to Uganda over Anti-LGBT stance

By our reporter
The International Development Association (IDA)-World Bank has announced plans to end any further funding to projects in Uganda over the enactment of the Anti-Homosexuality Act 2023.
In an announcement made on its official X formerly Twitter handle, World Bank noted that Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values and the Group’s vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality and the Anti-Homosexuality Act 2023 undermines those efforts.
The World Bank wrote, “Inclusion and non-discrimination sit at the heart of our work around the world. Immediately after the law was enacted, the World Bank deployed a team to Uganda to review our portfolio in the context of the new legislation. That review determined additional measures are necessary to ensure projects are implemented in alignment with our environmental and social standards. Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently under discussion with the authorities.”
In May 2023, President Museveni signed into law the Anti-Homosexuality Act 2023 into law making homosexuality illegal in Uganda and anyone convicted of homosexuality faces life imprisonment, while individuals convicted of aggravated homosexuality like have gay sex with someone below the age of 18 or where someone is infected with a life-long illness including HIV would face the death penalty.
In announcing the halt to the project financing, the World Bank added, “No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested. Third-party monitoring and grievance redress mechanisms will significantly increase, allowing us to take corrective action as necessary.”
The development comes at the time the Report on Public Debt, Grants, Guarantees and Liabilities for 2022/2023 for March 2023 revealed that Uganda’s outstanding debt stock including arrears from multilateral creditors is largely from the International Development Association of the World Bank (IDA), representing 55 percent https://www.finance.go.ug/publication/report-public-debt-grants-guarantees-and-other-financial-liabilities-fy-202223
The report also outlined that in FY 2022/23, Parliament approved several loans from the World Bank to a tune of Shs2.239Trn from the International Development Association Energy Access Scale Up Project US$331.5 Million about Shs1.2Trn on 20th February 2023.
Parliament also approved two loans from World Bank to finance Uganda’s Digital Acceleration Project to a tune of US$133.63 about (Shs483.661Bn) on 28th January 2023 and the other loan approved was meant to finance the Uganda Secondary Education Expansion Project worth US$153.42 about (Shs555.371Bn) on the 24th February 2023.
The World Bank’s pronouncement also comes at the time the Ministry of Finance in the report listed a number of loans in the pipeline loans that are prioritized for financing by the government and are under various stages of preparation and approval.
Government is planning to seek funding from the World Bank to a tune of US$150 Million about (Shs542.828Bn) for the Investment in Industrial Transformation and Employment Project and although this loan was approved by Cabinet and is due for sub- mission to Parliament, its future isn’t known following the latest pronouncement.
The Ministry of Finance in its report also highlighted the need to seek funding from the World Bank US$518 Million approximately (Shs1.874Trn) to finance the Greater Kampala Metropolitan Area Project Integrated transport infrastructure and services and at the time of publication of the report, this loan was before cabinet.
The report further revealed plans by the World Bank to seek another loan to a tune of US$325 Million about (Shs1.176Trn) to finance the Climate Smart Agriculture Project and the Ministry of Finance is also in negotiations with World Bank to refurbish Kampala-Kasese meter gauge Integrated transport infrastructure and services to a tune of USD450 Million about (Shs1.628Trn) and this loan is at the appraisal stage.
Although the World Bank Group claimed in its statement that it has a longstanding and productive relationship with Uganda and remains committed to helping all Ugandans without exception escape poverty, access vital services and improve their lives, the future of the loans worth Shs5.223Trn Government has in the pipeline from the World Bank isn’t known.
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