World Bank, USAID aid billions for Uganda jeopardized by anti-gay law

The World Bank and USAID will review their work in Uganda, adding their voices to growing outrage over Uganda’s anti-gay bill, which could jeopardize billions of dollars in funding the two institutions spend in the East African country. Uganda’s longtime leader, President Yoweri Museveni, on Friday signed into law a bill that could lead to the death penalty for people found guilty of "aggravated homosexuality," defined as same-sex acts involving people living with HIV or minors, among others. “We are reviewing our portfolio of projects and next steps,” outgoing World Bank President David Malpass told Devex in an exclusive interview. The new law is an “affront to the values of the World Bank.” USAID’s Administrator Samantha Power said the law is the latest in a string of moves by the Ugandan authorities to curtail the freedoms of its people. She said her agency will “evaluate the impact of this law on our policy, relationship, and assistance toward Uganda.” In a separate statement, the World Bank said the law “would endanger people by placing an added barrier to vital medical care, disease screening, and precautions.” The policy could stifle efforts to fight poverty in the country. “The World Bank Group places inclusive development at the forefront with a focus on all groups, especially those who are marginalized, disadvantaged or vulnerable,” it said. Power described the law as “an unconscionable attack on an already marginalized group” and that it jeopardizes the agency’s assistance to the country. “It will make it more difficult for our partners to advance inclusive development across the many sectors and areas where we work,” Power said in a statement, adding Uganda has become one of the most “dangerous places in the world” for the LGBTQI+ community. U.S. President Joe Biden called the law “shameful” and said his administration will review its relationship with Uganda including a trade agreement with the country, compounding the potential economic damage the legislation could do to the country. “Because of this, USAID is joining other departments and agencies from across the U.S. government to evaluate the impact of this law on our policy, relationship, and assistance toward Uganda,” Power said. The sharply worded criticism came on the heels of a joint call by The Global Fund to Fight AIDS, Tuberculosis and Malaria, or UNAIDS, and the U.S. President’s Emergency Plan for AIDS Relief, or PEPFAR, for Uganda to reconsider instituting the new law as it threatened to obstruct efforts to end HIV/AIDS as a public health danger. “The stigma and discrimination associated with the passage of the Act has already led to reduced access to prevention as well as treatment services,” they said. Josep Borrell, the European Union foreign policy chief, also urged the Ugandan government to reconsider implementing the law. Still, the bloc has no immediate plans to pause its aid funding to the country, an EU spokesperson told Devex. It will engage with authorities and monitor the situation as the law evolves during implementation and the ongoing judicial appeal process, the spokesperson said. “The Ugandan government has an obligation to protect all of its citizens and uphold their basic rights. Failure to do so will undermine relationships with international partners.” Why it matters Both the World Bank and USAID give huge sums of money to Uganda to finance its development. As of Dec. 31, 2022, the World Bank’s portfolio of credits and grants financed by the International Development Association, the concessional fund for the world's lowest-income nations, stood at $5.4 billion in commitments for 22 national and four regional projects. Uganda is one of the largest recipients of aid from USAID. In fiscal year 2022, the agency committed nearly $600 million to the country, the bulk of almost $800 million pledged by the U.S. government. Losing these funds could put a severe funding dent in the country and its ability to invest in its education, healthcare, and antipoverty efforts. What’s next Gay rights activists are taking their fight to the country’s Constitutional Court. They have filed a petition arguing that the law violates the rights of same-sex relationships, Bloomberg reports. The activists hope the court will strike down the law as it did in 2014 when a similar piece of legislation was determined to have run afoul of parliamentary procedures and deemed “null and void” by judges. The law’s passage back then sparked similar outrage with several donors pausing their support to Uganda.