World Bank Resumes Funding to Uganda After Hiatus Over Anti-LGBT Law
In a statement issued on June 5, 2025, the World Bank said it reached an agreement with the Ugandan government on “policy and oversight measures that safeguard human rights while ensuring development priorities remain on track.”
Kampala, June 2025 — The World Bank has officially announced the resumption of financial support to Uganda. This comes nearly two years after halting new funding in response to the country’s controversial anti-LGBT legislation passed in 2023.
The World Bank suspended new project financing for Uganda in August 2023. Citing the enactment of one of the world’s harshest anti-LGBT laws, which imposed severe penalties for same-sex relations and related offenses. The move froze billions of dollars in funding, straining public service delivery and infrastructure development.
Government takes.
President Yoweri Museveni’s administration had initially dismissed calls to amend the law, insisting it reflected Uganda’s “moral and cultural values.” However, under mounting economic pressure — including slowed growth projections and difficulty attracting external investment — the government engaged in behind-the-scenes negotiations with international lenders.
Key outcomes of the agreement include:
-Strengthened monitoring mechanisms to prevent discrimination in World Bank-funded projects.
-A commitment to maintain open channels for civil society oversight and grievance redress.
-New conditions tying some disbursements to measurable improvements in human rights and governance.
Finance Minister Matia Kasaija welcomed the decision, stating it would “boost confidence in the economy and unlock critical funding for health, education, and infrastructure.”
Opposition politicians and human rights groups remain cautious, arguing that the core law has not been repealed and discrimination risks persist. “This is a band-aid on a deeper wound,” said Nicholas Opiyo, a leading human rights lawyer in Kampala.
The resumption is expected to stabilize public spending, which had been under strain due to a widening deficit, increasing domestic borrowing. It also comes at a time Uganda needs robust financing for big-ticket projects. Including preparations to export its first crude oil and host the 2027 Africa Cup of Nations.
Analysts say the move reflects a balancing act by the World Bank. Sustaining its human rights commitments while preventing a development crisis in a country where millions depend on aid-funded services.
Quick Facts:
Funding resumed: June 5, 2025
Reason for suspension: Anti-LGBT law enacted in 2023
Estimated funding unlocked: Over $2 billion in suspended and new projects
Focus sectors: Health, education, infrastructure, and social safety nets
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