The World Bank said it would not consider new loans to Uganda after the East African nation passed an anti-gay law earlier this year that drew condemnation from rights groups.
The World Bank (WB) sent a team to Uganda after the law came into effect in May and determined that additional measures were needed to ensure projects' compliance with WB environmental and social standards.
"No new public financing for Uganda will be presented to our Board of Directors until the effectiveness of the additional measures has been tested," the World Bank Group said in a statement on Tuesday (August 8th).
"Our goal is to protect sexual and gender minorities from discrimination and exclusion in the projects we finance. These measures are currently being discussed with the authorities," it added.
The anti-gay law, which prescribes the death penalty for some homosexual acts, was signed into law in May. It has broad support in the country, and Ugandan officials have ignored concerns that partners such as the World Bank and others could pull funding because of the law. Some officials have suggested that threats to cut funding are inappropriate.
The AP agency did not receive comment from financial authorities in Uganda, which have been trying for months to secure new funding from the country's largest multilateral lender.
In a statement, the World Bank said that despite the latest decision, it remains "committed to helping all Ugandans, without exception, rise out of poverty, access basic services and improve their lives."
The United Nations human rights office said the Ugandan law is "draconian and discriminatory," describing it as a "recipe for systemic rights violations" of LGBTQ+ people and others.
The United States has warned of the economic consequences of passing the law.
Activists have challenged the law in court, but it remains unclear when the hearings will begin.
Homosexuality is criminalized in more than 30 of the 54 African countries.
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