World Bank Cancels loan to Uganda over anti-gay law

The World Bank has stated that it will no longer consider fresh loans to Uganda due to the passage of a law prohibiting same-sex activities.

Earlier this year, the Ugandan government passed legislation prohibiting anti-lesbian, homosexual, bisexual, and transgender practices in the country.

Anyone convicted faces life in prison or the death penalty under the law.

The World Bank slammed the bill in a statement on Tuesday, saying it is inconsistent with the global development lender’s core values.

The statement read, “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.

 “Immediately after the law was enacted, the World Bank deployed a team to Uganda to review our portfolio in the context of the new legislation.

“That review determined additional measures are necessary to ensure projects are implemented in alignment with our environmental and social standards.

“Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently under discussion with the authorities.

“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.

“Third-party monitoring and grievance redress mechanisms will significantly increase, allowing us to take corrective action as necessary.”

The World Bank Group, however, noted it still maintains a longstanding and productive relationship with Uganda despite the development.

“We remain committed to helping all Ugandans, without exception, escape poverty, access vital services, and improve their lives,” it added.