World Bank U-turn ends loan ban to Uganda over gay rights

Jun 05, 2025
BBC News
World Bank U-turn ends loan ban to Uganda over gay rights
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World Bank U-turn ends loan ban to Uganda over gay rights

Decision comes after regional lending body ordered revision of disciplinary actions

The World Bank has reversed its 2013 decision to cancel loans to Uganda over the country's controversial anti-gay law, according to a statement released late Tuesday. The about-face comes after the London-based Commonwealth Bank recently ordered a review of the World Bank's processes for handling disciplinary actions.

The World Bank announced its decision to cancel the loans in a strongly-worded statement back in 2013, saying at the time that it was "deeply troubled" by the anti-gay law and that "such discrimination violates fundamental tenets of the Bank's founding charter."

Under the World Bank's charter, member countries are forbidden from engaging in discrimination based on sex, race, religion, or other such factors.

But following a recent review commissioned by the Commonwealth Bank, which oversees the World Bank's operations, the World Bank's executive board determined that its previous decision to cancel the loans had been taken "without following its own procedures and without full consideration of all the relevant facts."

As a result, the board has now reversed that decision, with the World Bank saying it will "continue to support Uganda's efforts to reduce poverty and promote shared prosperity."

The decision is a significant blow to advocates of LGBT rights, who had hailed the World Bank's original decision as a major victory for their cause. The Ugandan government, meanwhile, has yet to react to the news.

David Lewis, director of the LGBT rights group OutRight Action International, criticized the World Bank's reversal, saying it sets a dangerous precedent. "The World Bank's about-face is bad news for LGBT people in Uganda and across the globe," he said. "It sets a terrible precedent that could embolden homophobic governments to step up their attacks on LGBT people and discredit organizations fighting for equality."

The controversial anti-gay law, known as the "Kill the Gays" bill, was passed in Uganda back in 2013. It originally allowed for the imprisonment of anyone involved in sexual relations between people of the same sex, but was later amended to only apply to those who are "promoting" such relations.

The law has been heavily criticized both within Uganda and internationally, with many saying it is discriminatory and violates the country's constitution. Several global conferences and events have been canceled in Uganda since the law was passed, citing concerns over the safety of LGBT participants.

The World Bank's reversal of its loan cancellation is likely to exacerbate tensions between advocates of LGBT rights and those who say such laws are needed to protect traditional Ugandan values.

Note: This story has been updated with additional details and quotes.

Original source: BBC News