Uganda: LGBTQ+ Activists Slam World Bank For Resuming Loans

LGBTQ+ activists in Uganda have condemned the World Bank’s decision to resume loans to the country, calling it a betrayal that enables discrimination and undermines human rights.

The World Bank recently announced that it would lift the suspension on new lending to Uganda, imposed in 2023 after the enactment of the Anti-Homosexuality Act—one of the world’s harshest anti-LGBTQ+ laws.

The Bank claims it has now implemented “mitigation measures” to ensure that its funds are used in a non-discriminatory manner. However, it has not clearly explained how these safeguards will be applied or enforced.

Civil Society: ‘A Deeply Troubling Decision’

Convening for Equality (CFE)—a coalition of Ugandan LGBTQ+ organisations—responded this week, warning that the decision sets a dangerous precedent and fails to hold the Ugandan government accountable.

CFE argues that the Bank’s reliance on ‘mitigation measures’ to attempt to avoid direct support for discrimination is “an inadequate and ethically flawed approach” that fails to hold the Ugandan government accountable.

“The World Bank’s move sets a treacherous precedent in which egregious human rights violations, including state-sanctioned persecution and violence against LGBTQ people, are met not with accountability but with tacit World Bank acceptance,” said Clare Byarugaba, co-convener of CFE.

“Mitigation measures do not protect us from arrest, harassment, or violence. They simply allow the World Bank to look the other way,” she added.

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.

Activists Reject ‘Mitigation’ Approach

Frank Mugisha, another co-convener of CFE, said that LGBTQ+ individuals in Uganda remain criminalised and excluded and mitigation measures fail to address the fundamental problem of legal persecution.

“Without genuine legal and policy reforms by the Ugandan government, the Bank’s mitigation strategy is a smokescreen. The Bank is effectively saying that inclusion and non-discrimination are negotiable. That should never be the case,” he stated.

CFE insists that by lifting the lending ban, the World Bank is indirectly validating and strengthening a regime that continues to persecute LGBTQ+ Ugandans.

Funding Fuels Repression

Pepe Onziema, co-coordinator of CFE’s Strategic Response Team, warned that even if funds are technically earmarked for development, they still bolster the state’s overall capacity.

“It allows the government to allocate domestic resources toward repression while using World Bank funds for development, thereby insulating its broader budget from pressure,” he explained. “As the 2026 elections loom, this is a terrifying reality for all Ugandans.”

A Betrayal of Human Rights

CFE described the World Bank’s decision as a betrayal of its mission to reduce poverty and promote shared prosperity.

“The World Bank should uphold the principle that human rights are not optional—and that economic assistance should never come at the cost of dignity, safety, or justice,” said the group.

Activists and scholars are currently challenging the constitutionality of the Anti-Homosexuality Act before Uganda’s Supreme Court. The case remains pending.

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