World Bank halts new loans to Uganda over anti-LGBTQ law

The World Bank has announced it will halt new loans to Uganda over the country’s controversial anti-LGBTQ law.

The Washington DC-based lender said on Tuesday it would pause project financing pending a review of measures it introduced to protect sexual and gender minorities from discrimination and exclusion in its projects.

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

The World Bank Group said in May that the law was not consistent with the lender’s values and that it was “highly concerned” about its adoption.

World Bank President Ajay Banga, who took office in June, faced pressure to respond to the legislation, with 170 civic groups urging “specific, concrete and timely actions”, including suspending future lending.

In its statement on Tuesday, the World Bank said it remained committed to providing assistance to Uganda despite its pause on financing.

“The World Bank Group has a longstanding and productive relationship with Uganda; and we remain committed to helping all Ugandans – without exception – escape poverty, access vital services, and improve their lives,” the lender said.