KAMPALA, Uganda — The World Bank has resumed financial support to Uganda nearly two years after halting new lending over the East African nation’s controversial Anti-Homosexuality Act, a law that drew international condemnation for its sweeping criminalization of same-sex relationships and alleged violations of human rights.
In a statement released Friday, the World Bank said the government of Uganda had since implemented “satisfactory mitigation measures” to prevent harm stemming from the law, including new project-level safeguards and monitoring mechanisms.
“Following extensive consultations and the introduction of tailored safeguards, the Bank is confident that its support can proceed without enabling discrimination or exclusion,” the statement read.
The Bank confirmed approval of three new development projects, totaling over $650 million, focused on social protection, education access, and humanitarian support for displaced persons and refugee populations in northern and western Uganda.
Ugandan officials welcomed the move, calling it a validation of the country’s development policies.
“We appreciate the Bank’s return and reaffirmation of its role in supporting Uganda’s long-term goals,” said Finance Minister Matia Kasaija during a press briefing in Kampala.
The resumption marks a significant shift in the relationship between Uganda and one of its largest multilateral donors.
In August 2023, the World Bank froze all new funding to the country in response to the signing of the Anti-Homosexuality Act by President Yoweri Museveni. At the time, the Bank argued that the law posed a fundamental risk to its commitment to inclusion and equality.
Rights groups have expressed cautious optimism, urging the Bank to enforce strong oversight over the new projects.
Analysts view the return of World Bank funding as a pragmatic step amid mounting pressure to address Uganda’s growing economic and refugee-related challenges.
The country currently hosts over 1.5 million refugees, one of the highest numbers in Africa.
“Whatever the politics, Uganda is a key development partner in the region,” said Dr. Janet Mugerwa, a senior policy analyst at the Kampala Institute of Development Economics.
“The World Bank is recalibrating—balancing principles with field realities.”
The announcement comes just weeks before the next budget cycle and is expected to inject fresh momentum into stalled programs across health, infrastructure, and education sectors.
