The World Bank said it is rolling out measures to ensure the recipients of lending to Uganda are not discriminated against by a tough anti-gay law.
A World Bank spokesperson said the measures, which include an independent monitoring mechanism to ensure compliance, would apply to ongoing and new projects.
Uganda, a mostly conservative country, enacted the Anti-Homosexuality Act (AHA) in May last year, drawing widespread condemnation from the West and sanctions from the United States.
Under the law, same-sex intercourse is punishable by life in prison while those who commit so-called aggravated homosexuality receive the death penalty.
The bank suspended all new lending to Uganda last year after finding that the law contradicts its values.
The World Bank is one of Uganda’s biggest funders, especially of critical infrastructure such as roads and energy. The funding suspension was seen as a significant blow to its finances.
“We will not propose any new public financing for Uganda to our board until we are satisfied that… mitigation measures are in place,” the bank said.
LGBT activists had asked the bank to keep the ban on funding as long as the law remains in force, they said in a statement this week.
“The World Bank’s mitigation measures are a facade, designed to provide the illusion of protection,” said Richard Lusimbo, a top official at Convening for Equality (CFE), a Ugandan LGBT activist group.