World Bank Resumes Uganda Lending After Two-Year Suspension Over Anti-LGBTQ Law

The World Bank has decided to resume lending to Uganda nearly two years after suspending new loans in response to the country's harsh anti-LGBTQ law, which includes penalties such as life imprisonment and the death penalty. The bank collaborated with the Ugandan government and other stakeholders to develop and implement mitigation measures to prevent discrimination in World Bank-funded projects, which have now been deemed satisfactory. New projects focusing on social protection, education, support for displaced persons, and infrastructure development are planned for funding. Despite concerns about Uganda's anti-LGBTQ legislation conflicting with the World Bank's values, the bank emphasized that inclusion and non-discrimination are central to its mission to eradicate poverty. Uganda, heavily reliant on World Bank financing, will have future public financing contingent on the ongoing effectiveness of these mitigation measures. This move marks a significant development for Uganda's economy, including unlocking funding for major infrastructure projects such as a standard-gauge railway linking Kampala to the Kenyan border.