World Bank closely monitoring progress on anti-gay legislation

Religious leaders and learners from primary and secondary schools march on the streets of Jinja City, protesting against homosexuality on February 24. PHOTO/FILE

What you need to know:

  • President Museveni has asked MPs to criminalise only those practicing homosexuality, not those who just identify by the sexual orientation. 
     

Although Uganda is a member of the World Bank, her relationship with the Bretton Wood Institution, the country’s largest creditor, could take a turn for the worse, if the Anti-Homosexuality Bill, 2023, is finally enacted.  

Monitor has since established that World Bank is closely watching developments around the Bill recently returned to Parliament by President Museveni for review of some clauses before signing the legislation, a move deemed by the likes of World Bank as being in breach of their non-discrimination policies. 

President Museveni asked MPs to criminalise only those practicing homosexuality, not those who just identify by the sexual orientation. He also asked them to drop the offence of failure to report homosexuals to authorities.

“The World Bank Group is aware of the Anti-Homosexuality Bill of 2023, and is monitoring [its] development,” sources at the World Bank Office in Kampala, said.  

The sources who spoke on the basis of anonymity until the legislative process is exhausted, further said: “We will continue to engage with the government of Uganda, development partners, and stakeholders towards development efforts that are effective and inclusive.”

It further emerged that the World Bank Group, being an institution comprising of 189 member states, decisions are made after consultations, including with a board, of which Uganda is one of the members.

And that is why it is important to monitor developments until it gets signed into a law and it’s enforceable, then the board could make a decision.

Important to note is that even though Uganda is a member and Board Member of World Bank, it is the US, Japan, China, Germany and the UK that have the most voting powers.

Anti-gay law: Uganda daring the West? 

From the interaction with the technocrats at the Finance ministry and the Bank of Uganda, it became clear that relationship with Bretton Wood Institution could be threatened as a result of the ongoing legislation, although there is no apparent formal communication so far that has been made to that effect.  

Until that happens, the country’s economic mangers believe the relationship with the multilateral institutions such as the World Bank and International Monetary Fund (IMF) remains professional and cordial.  

About 62 percent of the country’s external debt burden is owed to international financial institutions (IFIs) such as the World Bank and the IMF, also known as multilateral creditors. 
Currently, Uganda’s debt is estimated to be hovering around Shs90 trillion, according to the Auditor General.  

According to Finance ministry records, as at the end of December 2021, Uganda’s total public debt stock stood at Shs.73.5 trillion (equivalent to $20.7 billion), of which External Debt amounted to Shs45.72 trillion (equivalent to $12.9 billion) and Domestic Debt amounted to Shs27.77 trillion (equivalent to $ 7.84 billion). 

This represents nominal Debt to GDP ratio of 49.7 percent, which currently is estimated to be above 50 percent, a threshold signalling a debt crisis.  

The rise in the debt stock was mainly on account of the need to support the economy and preserve the welfare of households as a result of Covid-19, and other external and domestic shocks.

Debt was also used to finance the shortfalls in domestic revenue.  On April 25, the US put Uganda on notice that it risks losing $400 million (Shs1.4t) in Washington’s annual support to HIV/Aids care and treatment over the Anti-Homosexuality Bill.

“In light of the recent developments with the potential signing of the Anti-Homosexuality Act and how that could impact our ability to provide services and assistance, I have made the decision to postpone the final COP presentation meeting previously scheduled for April 28,” read in part the statement by Mr John Nkengasong from the US embassy.

Like the President, the Uganda Law Society in their recently released quarterly Rule of Law Report, said the anti-gay legislation replicates existing provisions. It urged relevant stakeholders to dialogue more and give careful considerations to rule out the several constitutional concerns it presents.

The European Parliament has, in its deliberations, castigated Uganda’s anti-gay Bill.

As the ping-pong continues on whether to have this piece of legislation assented to start biting, a section of MPs, who this publication interviewed last week, vowed to do everything possible to have it start biting. 

Tomorrow, there will be a plenary sitting by MPs to reconsider the President’s recommendations, which they under the Ugandan law, are permitted to accept, reject or vary,

Next step 

Tomorrow, there will be a plenary sitting by MPs to reconsider the President’s recommendations, which they under the Ugandan law, are permitted to accept, reject or vary.