(Bloomberg) -- The World Bank is working with Uganda to try and restore funding, which it halted after the East African nation passed repressive anti-gay legislation, by testing measures that rights groups say don’t go far enough.
The Washington-based lender froze new loans to Uganda in August 2023 after it adopted a law that threatens those who engage in same-sex relations with life in jail or even death in some instances.
A package of measures are now being rolled out by the World Bank and the Ugandan government that seek to ensure members of the LGBTQ community can benefit from projects funded by the lender, such as educational or health programs. This is a required step for financing to resume.
“We will not propose any new public financing for Uganda to our board until we are satisfied that additional mitigation measures are in place,” a World Bank spokesperson said in an emailed response to questions. “These mitigation measures have been designed to ensure beneficiaries of bank-financed projects are not discriminated against and receive equal access to services.”
Uganda is the only country to have ever faced such a World Bank backlash for passing anti-LGBTQ legislation, making it a bellwether for how the lender enforces its non-discrimination standards. The agreement it reaches could potentially set a precedent for other nations considering similar laws.
“We are concerned that the World Bank’s mitigation measures are gravely flawed both in structure and substance,” more than 100 civil society groups said in an open letter sent to World Bank President Ajay Banga that was dated Sept. 16.
Settling on weak measures would “be a setback in the fight for non-discrimination not only in Uganda but more generally around the world,” they said.
Countries that borrow from the bank must commit to respecting “environmental and social standards” that protect people from harm and exclusion in projects it finances.
Where there is a risk of these standards not being met, mitigation measures must be put in place to prove that the authorities are still able to implement the projects in a way that isn’t discriminatory or harmful. Anti-LGBTQ laws elevate that risk, according to the lender’s anti-discrimination guidelines.
The advocacy groups said the measures’ flaws include a lack of clarity over how their effectiveness will be measured, and fears that implementation will be left to the Ugandan government, which approved the discriminatory law in the first place. They described the package as “a façade.”
The World Bank said it is working with Uganda to implement the mitigation measures, providing a brief summary of what they entail, and that a date has yet to be set to assess their effectiveness.
The decision to restore funding lies with the World Bank, said Ramathan Ggoobi, the permanent secretary of Uganda’s finance ministry.
The “enhanced measures will guarantee that there is no exclusion of any group,” he said.
(Updates with civil society group comments in sixth, seventh paragraphs)
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