World Bank Resumes Loans to Uganda Despite Anti-LGBTQ+ Law

The World Bank has reversed its suspension of loans to Uganda, which was implemented after the country passed one of the world’s harshest anti-LGBTQ+ laws two years ago. So what has changed?

In August 2023, the bank stated that “Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values,” adding that “Inclusion and non-discrimination sit at the heart of our work around the world.”

It further announced that it would not proceed with the funding of new projects in Uganda until measures were in place “to protect sexual and gender minorities from discrimination and exclusion in the projects we finance.”

Cost of Discrimination to Uganda

The freeze in international funding due to the enactment of the law was estimated to cost Uganda between $276 million and $1.024 billion (USD) annually, delivering a significant blow to the country’s development efforts.

According to Reuters, the World Bank now believes that sufficient safeguards have been implemented to ensure that its funding is used in a non-discriminatory fashion.

New Projects Approved

“We have now determined the mitigation measures rolled out over the last several months in all ongoing projects in Uganda to be satisfactory,” an unnamed World Bank spokesperson told the news agency.

“Consequently, the Bank has prepared three new projects in sectors with significant development needs – social protection, education, and forced displacement/refugees – which have been approved by the Board.”

A Blow to Human Rights

The announcement will come as a blow to local and international human rights organisations, including ILGA World, the Human Rights Campaign, Outright International, and Rainbow Railroad.

In June 2023, these groups collectively urged the World Bank to halt loans to Uganda until the oppressive legislation was repealed.

The bank has not explained how it intends to protect LGBTQ+ individuals from discrimination in Uganda, where the Anti-Homosexuality Act infringes on many basic aspects of daily life.

A Law Rooted in Repression

President Yoweri Museveni signed the Anti-Homosexuality Act into law in May 2023. The legislation imposes severe penalties, including life imprisonment for engaging in same-sex relationships, the death penalty for so-called “aggravated homosexuality,” and up to 20 years in prison for “promoting” or advocating for LGBTQ+ rights.

In May 2025, Human Rights Watch released a damning report detailing how the draconian law has emboldened authorities to persecute LGBTQ individuals, their families, and the organisations that support them.

The report also warned that the law enables surveillance and policing of private life and gives authorities wide-ranging powers to target anyone perceived as supporting LGBTQ rights.

“The state-sanctioned bigotry and discrimination that has only become more entrenched in Uganda over the past two years has no place in a society that upholds human rights and the rule of law,” said Oryem Nyeko, Senior Africa Researcher at Human Rights Watch.