Thursday, November 21, 2024

World Bank suspends lending to Uganda over anti-LGBTQ law

Uganda has pushed back at the World Bank's move, condemning the decision and denouncing it as “unjust and hypocritical”.

The World Bank says it is suspending financial assistance to the Ugandan government after the African nation approved a stringent anti-homosexuality law.

The decision comes Uganda passed a new anti-LGBTQ law, drawing condemnation from western countries for its perceived infringement on human rights.

In a statement Tuesday, the World Bank said, “Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values”.

“We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality. This law undermines those efforts. Inclusion and non-discrimination sit at the heart of our work around the world,” the bank said.

It 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.”

– Uganda pushes back

Uganda has pushed back at the World Bank’s move, condemning the decision and denouncing it as “unjust and hypocritical”.

Okello Oryem, Uganda’s state minister for foreign affairs, accused the bank of double standards, saying they were lending to countries in the Middle East that have harsher laws on homosexuality comparatively.

“There are many Middle East countries who do not tolerate homosexuals, they actually hang and execute homosexuals, in the United States of America many states have passed laws that are either against or restrict activities of homosexuality … So why pick on Uganda?” he said.

“The World Bank has been put under pressure by the usual imperialists.”

Since assuming office in June, World Bank President Ajay Banga has faced pressure to address Uganda’s anti-gay law.

On June 15, up to 170 civic groups from around the world asked Banga to take “specific, concrete and timely actions” in response to the Uganda anti-LGBTQ law, including suspending future lending.

As at the end of 2022, the World Bank had extended up to $5.4 billion in International Development Association financing to Uganda.

The international lender said existing projects will continue to receive funds and private sector projects backed by the International Finance Corporation and the Multilateral Investment Guarantee Agency will be subject to a more stringent assessment process, focusing on inclusion and non-discrimination.


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