Funding to Uganda was initially paused in August 2023, shortly after the enactment of the AHA, which the World Bank said ran counter to its core values of inclusion and non-discrimination. The legislation mandates capital punishment for what it terms "aggravated homosexuality" and imposes lengthy prison terms for the "promotion" of same-sex relationships.
In an emailed statement to Reuters, a World Bank spokesperson said the institution had worked closely with Ugandan authorities to institute “strong measures to mitigate against potential harm from the law.” These mitigation efforts, which have been gradually introduced across existing projects, were assessed to be satisfactory, paving the way for renewed cooperation.
With the green light from its Board of Directors, the Bank has approved three new projects targeting key development areas: social protection, education, and assistance for refugees and displaced populations. These sectors were selected for their critical need and potential to support vulnerable communities without reinforcing discriminatory practices.
The World Bank remains one of Uganda's primary development partners, particularly in sectors like transportation infrastructure. Its return is likely to unlock substantial financial flows and technical support, even as the broader international community continues to scrutinize the human rights climate in the country.
Although the Bank's re-engagement is framed as conditional and closely monitored, critics argue that any renewed funding risks normalizing a law that entrenches systemic discrimination. Others see the move as a pragmatic step to avoid abandoning development goals in a nation with urgent needs.
The World Bank has not signaled any reversal of its stance on the AHA but appears to be balancing its values with the imperative to maintain a presence in countries where development progress remains fragile and uneven.