Kampala, Uganda. Good news as Uganda is inching closer to resolving the loan suspension imposed by the World Bank in August 2023. This is according to Ramathan Ggoobi, the Permanent Secretary in the finance ministry.
The suspension was due to concerns over the controversial Anti-Homosexuality Act, 2023.
The suspension was announced by the World Bank, citing a fundamental contradiction with its values as the Act imposes severe penalties, including the death penalty, for certain cases of gay sex.
The Ugandan government, led by President Yoweri Museveni, has faced international criticism for the legislation. But now, the finance ministry says progress is being made to address the issues that led to the loan suspension.
Ggoobi was also quoted by New Vision, that he was optimistic about the ongoing efforts to address the concerns raised by the World Bank.
He added that the government is actively working to implement measures that would assure the World Bank that funded projects will be executed without discrimination and with inclusivity.
“We are now at the tail end of doing exactly that. I am very optimistic that soon we shall be able to finalise the process, and the bank will now reconsider and be able to approve our new projects,” he stated.
The World Bank’s Concerns
The World Bank’s decision to halt new loans was grounded in the belief that the Anti-Homosexuality Act contradicted its vision of inclusivity, which encompasses everyone irrespective of race, gender, or sexuality.
The Act, signed into law by President Museveni in May 2023, faced strong opposition globally due to its severe penalties, including the death penalty for aggravated cases such as engaging in gay sex with a minor or when one party is infected with a life-long illness, including HIV.
While the World Bank made it clear that it would not present any new public financing to Uganda until a review of the efficacy of measures taken in response to the Anti-Homosexuality Act, it reiterated its commitment to assisting all Ugandans without exception.
The bank aims to support efforts to help citizens escape poverty, access vital services, and improve their lives.
Ugandan Government’s Response
Despite international pressure to repeal the legislation, the Ugandan government, under President Museveni, stood firm in its decision to uphold the Anti-Homosexuality Act. However, the law has faced legal challenges and is currently under review by the Constitutional Court.
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