KAMPALA, Uganda – The Ugandan government has announced the resumption of concessional financing from the World Bank, securing a significant funding pledge of approximately $2 billion. This development comes nearly a year after the international lender halted new loans to the country in protest of its controversial anti-LGBTQ+ legislation.
Uganda’s Secretary to the Treasury, Ramathan Ggoobi, confirmed the agreement, stating that the funds are earmarked for critical national development projects. According to Ggoobi, the loan will be directed towards financing key infrastructure and productivity sectors, including transport, energy, information and communication technology (ICT), and agriculture.
“The loan will be used to finance transport, energy, information and communication technology and agricultural projects,” Ggoobi said, highlighting the government’s focus on stimulating economic growth through strategic investments.
The World Bank suspended all new public financing to Uganda in August 2023, following the enactment of the country’s Anti-Homosexuality Act. The law, one of the world’s harshest, includes provisions for the death penalty for “aggravated homosexuality” and long prison sentences for consensual same-sex relations. The World Bank stated at the time that the legislation fundamentally contradicted its core values of inclusion and non-discrimination.
The suspension prompted concerns over Uganda’s budget and its ability to finance essential development programs, which are heavily reliant on external borrowing. The newly announced $2 billion pledge signals a potential thaw in the financial stalemate, though the exact terms and conditions underpinning the resumption of lending have not been fully disclosed.
The move is expected to provide a substantial boost to Uganda’s economy, enabling the government to proceed with stalled or planned projects in infrastructure and agriculture, sectors deemed vital for the nation’s development.
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