Uganda: Economy set to suffer over anti-LGBTIQ+ law

Uganda’s economy is facing tough times thanks to the country’s irrational obsession with trampling on the human rights of its LGBTIQ citizens.

According to Bloomberg, Uganda’s currency, the shilling, last week suffered the biggest one-day decline in value in almost eight years after the World Bank announced it would suspend new loans to the country.

Budget Impact and Defiant Response

The suspension is also set to impact the country’s budget, forcing the government to scramble to adjust its spending plans and look for new sources of funding.

President Yoweri Museveni remained defiant, accusing the World Bank of trying to “coerce us into abandoning our faith, culture, principles, and sovereignty, using money.”

He wrote on Twitter: “We do not need pressure from anybody to know how to solve problems in our society. They are our problems.”

Museveni proclaimed that “Uganda will develop with or without loans” but added that the government remained in talks with the World Bank “so that both they and we avoid this diversion if possible.”

Preparing for Reduced Funding

Henry Musasizi, the State Minister for Finance, told MPs on Thursday that they should prepare to adapt to the reduction in funding.

“We took the firm decision and we agreed that we shall face the consequences,” he said. “I want to prepare your mind that very soon we are going to revise the budget downwards, and we shall be coming to you for support.”

The World Bank recently decided to suspend any new loans to Uganda in response to the country’s draconian Anti-Homosexuality Act, which was signed into law by Museveni in May.

“We firmly believe that our vision to alleviate poverty on a sustainable planet can only be achieved if it encompasses everyone, regardless of race, gender, or sexuality. This law undermines the very essence of these efforts,” stated the bank.

Pressure and Principles

The move followed intense pressure from more than 170 rights groups who highlighted the incongruity between Ugandan legislation and the World Bank’s guiding principles of inclusion and non-discrimination.

Uganda’s Anti-Homosexuality Act imposes stringent penalties, including life imprisonment for engaging in homosexual acts, capital punishment for aggravated homosexuality, and a 20-year imprisonment term for “promoting” or advocating LGBTQ+ rights.