As the World Bank considers resuming lending to Uganda despite the country’s recent enactment of the Anti-Homosexuality Act (AHA), it is imperative to recognize the potential consequences. The Ugandan administration’s proposed “mitigation measures” to prevent discrimination and exclusion within World Bank projects are insufficient and unenforceable. For the World Bank to endorse them risks undermining its credibility as a champion of inclusive development and threatens to discredit Ajay Banga’s ambitious development agenda a year into his mandate.
The AHA, passed in May 2023, has led to increased stigma, violence, and exclusion of LGBTQ+ individuals in Uganda. In August 2023, the World Bank halted the authorization of any new loans following its new policy on anti-discrimination until measures are implemented to ensure that LGBTQ+ people have equal access to its projects. However, the current consideration to resume lending without robust support for the affected populations undermines this commitment.
The proposed mitigation measures fail on multiple fronts. They do not explicitly address discrimination based on sexual orientation or gender identity, instead referring vaguely to “vulnerable and marginalized individuals or groups.” This lack of specificity fails to acknowledge that AHA bars LGBTQ+ people from development efforts. The World Bank’s endorsement of this approach undermines the basic principle that an effective nondiscrimination policy should name the groups it protects.
Resuming lending to Uganda amid new corruption scandals involving top government officials, such as Speaker of Parliament Anita Among, only compounds the issue. Ms. Among’s baseless accusations in March this year that “homosexuals” are behind the allegations of embezzlement she faces highlight the deteriorating governance and gap between inflammatory rhetoric and the trust the Bank places in these non-committal “mitigation measures.”
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World Bank President Ajay Banga’s leadership is critical in this complex situation. Banga’s tenure has marked a commitment to inclusive and sustainable development in opposition to his predecessor. However, moving forward with lending to Uganda signals that the World Bank is willing to support countries that exclude LGBTQ+ people as long as the government adopts ineffective and perfunctory policies.
The international community, particularly the Bank’s largest shareholder, the United States, must hold the World Bank accountable. The Bank’s Environmental and Social Framework (ESF) mandates specific measures to address risks faced by vulnerable groups. Mitigation measures must explicitly include sexual orientation and gender identity protections, backed by enforceable guidelines and independent monitoring. For Uganda, this means unequivocal protections for LGBTQ+ individuals. Anything less would betray the principles the World Bank purported to uphold.
As activists committed to human rights and social justice, we urge the World Bank to stand firm and demand concrete responses from the Government of Uganda. Human rights violations not only undermine development but also constitute self-inflicted economic wounds. The fight for LGBTQ+ equality requires unwavering support from the international community, and the World Bank must rise to the occasion.
Frank Mugisha is the Executive Director of Sexual Minorities Uganda (SMUG).
Fabrice Houdart is a former senior World Bank country officer, adjunct professor at Georgetown University and Columbia University, and co-founder of Koppa, the LGBTI+ Economic Lab.