World Bank Uganda Loan Reversal
World Bank Lifts Loan Ban on Uganda Over Gay Rights
Consensus reporting
1 sources analyzed
The World Bank has reversed its ban on loans to Uganda, which was imposed two years ago due to the country's stringent anti-LGBTQ legislation. This decision, announced in June 2025, marks a significant shift in the financial relationship between the international financial institution and Uganda.
The ban was initially implemented in 2023 following the passage of one of the world's harshest anti-homosexual laws in Uganda. This legislation imposed severe penalties, including the death sentence, for certain same-sex acts. The law has had a profound impact on the LGBTQ community in Uganda, with hundreds of individuals facing eviction, violence, or arrest.
The reversal of the loan ban comes amidst ongoing global discussions about human rights and international aid. The World Bank is recognized as one of Uganda's primary sources of external financing, making this decision crucial for the country's economic stability and development. The lifting of the ban is expected to facilitate the resumption of financial aid, which is vital for various development projects and economic initiatives in Uganda.
The decision to lift the ban does not indicate a change in the international community's stance on human rights but rather reflects a strategic move to balance economic support with diplomatic pressure. The World Bank's action underscores the complex interplay between financial aid and human rights advocacy, highlighting the challenges in addressing both economic development and social justice.