The State Minister for Finance, Henry Musasizi, has confirmed that the Ugandan government is actively engaged in negotiations with the World Bank.
These negotiations are a response to the suspension of funding to Uganda following the passage of the Anti-Homosexuality Act. Musasizi has provided reassurance to Ugandans, stating that these negotiations are progressing positively.
To elaborate, in these negotiations with the World Bank, the government has made substantial progress. The World Bank has set specific benchmarks, requested information, and expressed certain concerns.
Uganda is diligently addressing these criteria and has consistently provided the required information, effectively resolving the raised issues. Musasizi is optimistic that a mutually beneficial agreement with the World Bank will be reached, eliminating the need for concern about the World Bank’s decision.
It’s worth noting that the Bank of Uganda reported a depreciation in the exchange rate following the World Bank’s decision not to fund new loans due to the Anti-Homosexuality Act. This specific event caused the exchange rate to drop from approximately 3650 to nearly 3750 in just two days.
This depreciation has remained consistent, leading to pressure and uncertainty surrounding the currency, all attributed to the passage of the Anti-Homosexuality Act.
The World Bank’s decision to suspend public financing to Uganda was a direct response to Uganda’s adoption of the Anti-Homosexuality law, which criminalizes homosexual activities in the country.
The World Bank cited that this law contradicts its core values, leading to the suspension of new public financing until additional measures can be assessed.
In broader terms, the World Bank’s decision aims to protect sexual and gender minority groups from the discriminatory effects of the law. This has drawn criticism from human rights groups and Western nations.
Furthermore, the World Bank is committed to safeguarding inclusion and non-discrimination, which are at the heart of its work worldwide.
To provide context, it’s important to highlight that the World Bank faced pressure from the U.S. Congress to halt new loans for Uganda until the country repealed the anti-homosexuality legislation. Additionally, U.S. President Joe Biden had cautioned that Uganda could face economic sanctions over the anti-gay law.