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World Bank Walks Tightrope: New Funding for Uganda But Will LGBTQ+ Community Benefit?

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World Bank funding Uganda and the LGBTQ+ community

The World Bank is treading a fine line, aiming to restart funding for Uganda while ensuring its projects don’t fuel discrimination under the nation’s controversial anti-gay law. The bank halted new loans to Uganda last year after the law passed, sparking international outrage and sanctions from the US.

Now, the institution says it’s implementing safeguards to ensure new funding doesn’t inadvertently support discrimination. But will these measures be enough to protect the LGBTQ+ community? Uganda, a predominantly conservative nation, enacted the Anti-Homosexuality Act (AHA) in May 2023.

The law met with widespread condemnation, particularly for its harsh penalties. Same-sex relationships can lead to life imprisonment, and those convicted of “aggravated homosexuality” face the death penalty.

The World Bank, a crucial source of funding for Uganda’s infrastructure projects like roads and energy, suspended new loans, significantly impacting the nation’s finances. The bank now states it’s implementing “mitigation measures” before proposing any new public financing to its board.

These include an independent mechanism to monitor projects and guarantee compliance with the bank’s values. However, LGBTQ+ activists remain skeptical. Richard Lusimbo of Convening for Equality, a Ugandan activist group, argues that these measures are a “facade” offering only the “illusion of protection.”

They urge the bank to maintain the funding ban as long as the AHA remains in effect. The World Bank’s decision highlights the challenge of balancing development goals with human rights concerns.

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While the institution seeks to support Uganda’s growth, it faces scrutiny over potentially enabling discriminatory practices. The effectiveness of the bank’s safeguards and their impact on the LGBTQ+ community remain to be seen.