By Leonard Kamugisha Akida,
KAMPALA
President Museveni has rebuked the World Bank over the announcement to cut off offering new loans to Uganda due to the recently passed Anti-Homosexuality law.
On Tuesday, the World Bank said it would halt new lending to Uganda concluding that the newly passed law contradicts its values.
“No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested,” the bank said in a statement, adding that such measures were now under discussion with Ugandan authorities.
In reaction to the bank’s announcement, Ugandan President, HE Yoweri Kaguta Museveni lambasted the World Bank asserting that Uganda will develop with or without loans.
“I want to inform everybody, starting with Ugandans, that Uganda will develop with or without loans,” he said
President Museveni said that some of the loans were carelessly entered into the country by the officials yet were completely unnecessary which prompted him to put down his foot and forbade agreeing to any loans before approval. He says this has resulted into less and cautious borrowing.
The aging president noted that Uganda’s economy is growing with inflation estimated at 3.9% amidst global challenges such as the war in Europe, corona.
Museveni says there are other non Bretton Woods sources of funds in which the country can borrow in case of absolute need for borrowing. He added that country’s commercial oil exploration that is expected to start in 2025 will provide additional source of revenue than squatting to the Anti-African culture European aids
He called for financial discipline, patriotism to combat corruption so that other sectors such as agriculture, industries and services sector are expand to thrive country’s economy.
Although the World Bank says it’s committed to helping all Ugandans to escape poverty, access vital services, and improve their lives, they also argue that the Anti-LBTQ is discriminatory in nature and against its environmental and social standards.
“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a livable planet can only succeed if it includes everyone irrespective of race, gender, or sexuality,” the bank said.
But, President Museveni is holding his feet on the ground to preserve and protect African culture values and norms against white supremacy sugar coating in expanding financial aid in Africa. He says the unfortunate decision by the World Bank, UN and other world economies undermines all Africans coercing Africa to abandon its faith, culture, principles and sovereignty, using money.
“We do not need pressure from anybody to know how to solve problems in our society They are our problems,” Museveni told World Bank
The Anti-Gay law in Uganda was enacted in May and carries the death penalty for “aggravated homosexuality,” an offense that includes transmitting HIV through gay sex. But, Museveni insists that the law does not merely target homosexuals but those recruiting or coercing others into the deviance. He said government will identify and enact any residual illogicalitied in the law.
He further revealed that his government is holding talks with the World Bank regarding this diversion.
About World Bank Loans
The World Bank had provided $5.4 billion in International Development Association financing to Uganda by the end of 2022, including many health and education projects that could be affected by the new law.
The bank says however, that the existing portfolio will continue to disburse funds, even as new lending is put on hold.
Private sector projects backed by the International Finance Corporation and the Multilateral Investment Guarantee Agency (MIGA) would proceed only “on a selective basis,” the bank said in a separate note to staff.
It said the IFC and MIGA would also implement additional measures to “ensure inclusion and non-discrimination as needed.”
In its statement, the World Bank said it would significantly increase third-party monitoring and grievance redress mechanisms with regard to the Uganda portfolio to allow the bank to take corrective action as necessary.
