KAMPALA, June 5, 2025 — The World Bank has announced it will resume new funding to Uganda nearly two years after suspending financial support in response to the country’s controversial Anti-Homosexuality Act (AHA). The suspension, which began in August 2023, followed Uganda’s enactment of the law that imposes severe penalties—including death and life imprisonment—for certain same-sex relations and related activities.
A World Bank spokesperson confirmed that after extensive collaboration with Ugandan authorities, the institution is satisfied with the mitigation measures implemented to prevent discrimination in all ongoing projects. “We have now determined the mitigation measures rolled out over the last several months in all ongoing projects in Uganda to be satisfactory,” the spokesperson said.
The Bank has prepared three new projects targeting critical sectors with significant development needs: social protection, education, and forced displacement/refugees. These projects have been approved by the World Bank’s Board and are expected to support Uganda’s development priorities.
The Anti-Homosexuality Act, signed into law in May 2023, mandates the death penalty for “aggravated homosexuality,” which includes same-sex relations with a disabled person or transmission of a terminal illness through such relations. The law also prescribes a 20-year prison sentence for “promoting” homosexuality.
The World Bank, one of Uganda’s largest external financiers—especially in infrastructure and transport—halted new loans citing the law’s conflict with its values of non-discrimination and inclusivity. The suspension significantly impacted Uganda’s economy, with estimates of lost funding ranging from $586 million to $2.4 billion annually.
The resumption of funding marks a critical step for Uganda as it seeks to accelerate economic growth and improve social services. The World Bank emphasized that its mission to end poverty and promote shared prosperity depends on ensuring all people can participate in and benefit from its projects without discrimination.
Uganda’s economy has shown resilience despite challenges, with growth projected above 5 percent in recent years. Key sectors such as agriculture, services, and industry contribute to this growth, supported by investments and foreign direct inflows. The World Bank’s renewed engagement is expected to bolster efforts in human capital development, infrastructure, and social protection to meet the needs of Uganda’s growing population.
This development signals a cautious but hopeful return to international cooperation amid ongoing debates over human rights and governance in Uganda.
