Uganda is actively seeking funding from the World Bank for its development agenda, sparking negotiations that encompass various critical issues. Among these concerns are human rights compliance, particularly related to Uganda’s enactment of anti-gay legislation, as well as discussions on financial agreements, accountability, and the country’s reliance on low-cost financing from the World Bank.
The World Bank has expressed serious apprehension regarding Uganda’s Anti-Homosexuality Act 2023, citing potential barriers to vital medical care, disease screening, and precautions if the Act is implemented. The institution emphasized its commitment to inclusive development and non-discrimination. President Museveni responded by characterizing the World Bank’s decision as provocative and arrogant.
While the Treasury has indicated that agreements have been reached through formal meetings with the World Bank, sources from the Uganda Chapter of the World Bank and the International Monetary Fund’s Parliamentary Network dispute these assertions, stating that no consensus has been reached.
Ugandan economists emphasize the critical role of the World Bank’s low-cost financing with long maturities and low or zero interest rates in the country’s financial obligations. Without such financing, Uganda faces significant challenges in fulfilling its development goals.
Uganda has realized the need to address certain aspects of the Anti-Homosexuality Act, especially concerning how police officers handle related cases. The Director of Public Prosecutions issued a notice highlighting the Act’s specific provisions criminalizing sexual acts rather than mere identification as homosexual. The notice aims to ensure fairness in handling cases related to the Act.
Negotiations with the World Bank must now address safeguard measures to demonstrate Uganda’s commitment to inclusive support without excluding any groups for any reason. The government is also exploring discussions with major banks to secure syndicated loans and possibly issue Eurobonds.
Uganda’s efforts to secure funding from the World Bank come amidst concerns about human rights compliance and accountability. The World Bank’s decision to withhold financing due to Uganda’s Anti-Homosexuality Act has prompted negotiations to address these issues. Uganda’s dependence on low-cost financing makes these discussions crucial for its development agenda. As negotiations continue, safeguard measures will be a central focus to ensure that support remains inclusive and does not discriminate against any groups. The outcome of these negotiations will have significant implications for Uganda’s development efforts and its relationship with international financial institutions.