Uganda said Tuesday it will receive more than $2 billion in new financing from the World Bank over the next three years, signaling a resumption of major concessional lending that was paused nearly two years ago over the country’s controversial anti-LGBTQ law.
The global lender suspended new loans to the East African nation in 2021 after Uganda enacted legislation that includes the death penalty for certain same-sex acts. The move had pressured Uganda’s budget and forced the government to seek more expensive domestic credit.
Ramathan Ggoobi, the Ministry of Finance’s permanent secretary and secretary to the Treasury, announced the renewed financial support in a statement.
“I am glad to announce that concessional financing is back,” Ggoobi said. “In the next three financial years the World Bank will disburse over $2 billion of new money to finance our development.”
He said the funds would be directed to projects in key sectors including transportation, energy, information and communication technology (ICT), and agriculture.
The World Bank did not immediately respond to a request for comment Tuesday.
The lender, alongside China, has traditionally been one of Uganda’s largest sources of cheap credit. Finance ministry data shows the suspension created a significant gap, complicating funding for long-term infrastructure projects.
The announcement indicates a significant diplomatic and financial thaw. While the World Bank has not detailed the reasons for resuming loans, it follows the institution’s earlier statements that it would continue dialogue with Uganda while aiming to protect marginalized groups.
The funding boost comes as Uganda navigates other financial negotiations. The country is currently in talks with the International Monetary Fund (IMF) for a new Extended Credit Facility program. A previous $1 billion agreement lapsed last year before all funds were disbursed.
The fresh capital is also seen as crucial for Uganda’s ambitious economic timeline. The finance ministry said last month it expects the start of commercial crude oil production around mid-2026 to help push economic growth into double digits in the 2026/27 fiscal year. The newly announced World Bank funds are expected to help build the infrastructure needed to support that growth and other development goals.
For now, the government is framing the return of substantial international lending as a major victory for its economic agenda.
