Uganda Wins Back World Bank Support—Despite Death Penalty for Gays

Two years after suspending financial support to Uganda over its harsh anti-LGBTQ legislation, the World Bank has announced it is lifting the ban, citing new “mitigation measures” that it believes will prevent discrimination in future projects.

The international financial institution halted lending to Uganda in 2023 following the East African country’s passage of one of the world’s most punitive anti-gay laws. The legislation allows the death penalty for certain same-sex acts and imposes up to 20 years imprisonment for “promoting homosexuality.”

The law sparked international outrage and had dire financial consequences. According to Open for Business, a UK-based advocacy group, Uganda lost between $470 million and $1.7 billion in the year following the law’s enactment due to frozen funds and suspended development partnerships.

Despite continued reports of violence, arrests, and forced evictions targeting LGBTQ individuals, the World Bank now says it is “confident” that new systems will ensure non-discriminatory implementation of its development projects in Uganda.
“The World Bank cannot deliver on its mission to end poverty and boost shared prosperity on a liveable planet unless all people can participate in, and benefit from, the projects we finance,” a spokesperson told AFP, adding that the Bank had “worked with the [Ugandan] government and other stakeholders to introduce, implement and test” anti-discrimination safeguards.

The World Bank has reportedly approved new projects in areas such as social protection, education, and refugee assistance under the revised terms.

Uganda’s Information Minister, Chris Baryomunsi, welcomed the decision, but insisted that the initial suspension was “uncalled for.”
“Our law is not targeting or discriminating against anyone,” Baryomunsi said, maintaining that homosexuality was “permitted in private” but not to be “promoted.”

Human rights groups disagree. According to the Human Rights Awareness and Promotion Forum, hundreds of Ugandans have faced attacks, arrests, or evictions due to their perceived sexual orientation since the law was enacted.
“The law has emboldened mobs and state actors to target LGBTQ people,” said Oryem Nyeko, a researcher with Human Rights Watch, describing it as a political distraction from deeper national issues like unemployment and repression of opposition voices.

Critics also argue that the return of World Bank funding, while economically significant, weakens the global stance on human rights and accountability.
“This sets a troubling precedent: that nations can enforce brutal laws against minorities and still regain international support by simply making procedural promises,” said a regional LGBTQ rights advocate who asked to remain anonymous for fear of reprisal.

Analysts note that the World Bank is one of Uganda’s largest external financiers, funding key infrastructure projects such as road construction and electricity expansion.

Still, the institution’s return has reignited debates over the balance between economic development and human rights, especially in nations where conservative social norms conflict with international standards.