The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. Uganda is part of the countries funded by world bank in form of grants and loans.

The funding is used to improve healthcare, agriculture, roads, energy, infrastructure and education.

Early this month however, the World Bank in a statement said that there will be no future funding for Uganda due to the anti-gay law which the president of Uganda, Museveni, signed into law in May 29th, 2023 bringing a lot of international criticism and harsh penalty.

World Bank insists that this Ugandan Act fundamentally contradicts their values of inclusion and non-discrimination. The Vision of World Bank is to eradicate poverty through what they call including everyone irrespective of race, gender, or sexual orientation.

Ugandan president bluntly wrote on twitter, ” Ugandans will develop with or without loans”.

“It is therefore regrettable that the world bank and others are trying to pressure us to abandon our faith , culture, principles and sovereignty, using money” he added.

“These are circumstances we are finding ourselves, and therefore we are proactively looking at methods of adaptability but also ways of making sure that we mitigate the likely impact, if any,” Jimmy Mugunga – Spokesperson for Uganda’s Ministry of Finance, Planning and economic Development.

Uganda has been facing undefined penalties by various bodies and countries especially that have over time been funding the country leaving Uganda in a financial constraining situation.

“When World Bank gives you a loan and you put it in your central Bank in dollars, you begin to convert it to local  currency, so, that stabilizes the shilling, because you have some sufficient dollars that people who need to import things can use. So, if the world Bank loans don’t come through, then we might see pressure on the exchange rate as well going upward” – Economist Fred Muhumuza.

Courtesy Photo.