Uganda President Yoweri Museveni criticized the World Bank after the latter decided to cut funding to his country following an anti-LGBTQ law.
His remarks on the decision also came with a commitment to finding alternative sources of credit for his nation. The president, who has been in office since 1986, released a statement on Thursday saying that Uganda is making efforts to reduce borrowing and would stand strong amid pressure from foreign institutions.
Uganda President Criticizes World Bank
Museveni noted that it was unfortunate that the World Bank and other actors were trying to coerce Uganda into abandoning its faith, culture, principles, and sovereignty with the use of money. The president said that these entities are underestimating all Africans.
He added that if the country needs to borrow money, it could look to tap other sources, and oil production is expected to begin by 2025, which would provide additional revenues. Museveni noted that he hoped the World Bank would reconsider its decision, which could force Uganda to revise its budget, as per Aljazeera.
Various human rights organizations have condemned Uganda's anti-LGBTQ law that was approved in May. It imposes capital punishment for "aggravated homosexuality," which includes transmitting HIV through gay sex, and 20 years of imprisonment for "promoting" homosexuality.
On Tuesday, the World Bank said that the law contradicts its values and would suspend new funding to Uganda until it could test measures to prevent discrimination in projects it finances. The agency added that its goals can only be achieved if everyone, disregarding race, gender, or sexuality, is included in a proper future.
The World Bank argues that Uganda's anti-LGBTQ law undermines such efforts, adding that inclusion and non-discrimination were the core of its work worldwide. The agency currently has an existing portfolio of $5.2 billion in Uganda, and these projects will not be affected by the recent decision.
On Thursday, junior finance minister Henry Musasizi said that the Uganda government will ask Parliament to vote through a revised 2023-2024 (July-June) budget to reflect the potential financial effects of the suspension of lending from the World Bank, according to Reuters.
Suspension of International Funding
The United States in June imposed visa restrictions on some Ugandan officials in response to the widely criticized new law. Additionally, U.S. President Joe Biden ordered a review of U.S. aid to the East African country.
A spokesperson for Uganda's Ministry of Finance, Planning, and Economic Development, Jimmy Mugunga, said that the country made unified efforts to explain the effect and intent of the new law to the World Bank and other institutions.
He added that the Uganda government believes in continued engagement with international institutions and said that the Ministry of Finance will continue to engage the bank and any other entities to clarify the situation.
So far, Uganda has received roughly $1.7 billion of the more than $4 billion that the World Bank allocated to the region. However, the recent development has brought concerns about whether or not the nation will be receiving the remaining amount, said Voice of America News.