The World Bank says on Tuesday that it’s suspending new loans to Uganda because of a new anti-gay law that contradicts its core value.
It stated that it would halt new allocation until it could test measures to thwart discrimination in projects it finances.
It was gathered by Golden Nation Multimedia that homosexual acts were already illegal in Uganda, as anyone now convicted faces life imprisonment under the new law which was enacted in May 2023.
The anti-LGBTQ law, enacted in May, has attracted widespread criticism from local and international rights organizations and Western governments, though it is prevalent domestically.
But Ugandan President Yoweri Museveni said in a statement that Uganda was trying to reduce borrowing in any case and would not give in to pressure from foreign institutions.
“It is, therefore, unfortunate that the World Bank and other actors dare to want to coerce us into abandoning our faith, culture, principles, and sovereignty, using money. They underestimate all Africans,” he said.
Museveni said that if Uganda needed to borrow, it could tap other sources and that oil production expected to start by 2025 would provide additional revenues.
He added he hoped the World Bank would revisit its decision.
Junior finance minister, Henry Musasizi told parliament on Thursday that the government will ask parliament to vote through a revised 2023-2024 (July-June) budget to reflect the potential financial impact of the lending suspension.
“We shall be coming in one week or so… to ask for your approval,” Musasizi told legislators.
In June, the United States imposed visa restrictions on some Ugandan officials in reaction to the law, as President Joe Biden also demanded a review of U.S. aid to Uganda.
