The World Bank announced on August 8, 2023 that it would suspend new public financing to Uganda following the enactment of the Anti-Homosexuality Act, 20231. The law criminalizes same-sex relations and imposes a penalty of life imprisonment in section 2(2) of the Act. The World Bank said that the law contradicts its moral values of eradicating poverty without discrimination. Uganda joined the World Bank in 19632, a year after obtaining independence. Since then, the World Bank has provided over US$8 billion in financing, with more than US$7.30 billion in loans and credits, and US$650 million in grants. As of August 2013, the Uganda portfolio comprised 14 International Development Association (IDA)-financed operations with a net commitment amount of US$1.372 billion; IDA is the arm of the Bank that lends to the poorest countries. In addition, there are four regional projects (environment, trade and transport, health and agriculture) with net commitments of US$94.0 for the Uganda component Some of the most significant projects affected include3 the “Uganda Climate Smart Agricultural Transformation Project,” valued at $354.70 million. This project aimed to enhance agricultural practices to mitigate climate change impacts and improve food security. The “Generating Growth Opportunities and Productivity for Women Enterprises Project” worth $217.00 million, had aspirations to empower women entrepreneurs, fostering inclusive economic growth comes in second. The suspension also impacts mega projects like the “Greater Kampala Metropolitan Area Urban Development Program,” valued at $4132.31 million4. This initiative was poised to transform the urban infrastructure and quality of life in the capital region. Similarly, the “Electricity Access Scale-Up Project (EASP)”5 worth $638.00 million aimed at working towards expanding electricity access, a cornerstone for economic development is likely to be affected by this suspension. The halt in funding raises concerns about the fate of ongoing and proposed projects alike. Uganda’s ambitious plans to boost industrial transformation, education, and healthcare now face uncertainties that could undermine the nation’s development trajectory. Furthermore, initiatives related to climate resilience and forest conservation, which require strategic investments, have been affected. In response to this funding suspension, Uganda must adopt a proactive and strategic approach. It necessitates a comprehensive re-evaluation of spending priorities, with a heightened emphasis on the critical service delivery sector. Curbing extravagant expenditures is paramount – a critical examination of negative spending patterns resulting from delayed projects is essential. The Government should also prioritize strengthening governance mechanisms, instilling transparency, and ensuring that funds are 1 https://www.parliament.go.ug/sites/default/files/The%20Anti-Homosexuality%20Act%2C%202023.pdf 2 https://www.worldbank.org/en/news/press-release/2013/08/01/world-bank-group-endorses-progress-report- for-the-country-assistance-strategy-for-uganda 3 https://projects.worldbank.org/en/projects-operations/project-detail/P173296 4 https://projects.worldbank.org/en/projects-operations/project-detail/P176747 54 https://projects.worldbank.org/en/projects-operations/project-detail/P166685 used efficiently. Enhancing coordination among implementing agencies is crucial to streamline processes and minimize delays. Lastly, addressing the root causes of the suspension, whether they be financial mismanagement or other issues, is paramount. Open dialogue, collaboration, and, most importantly, demonstrating tangible progress in these areas are imperative to restore financial support and rebuild trust with funding partners. In light of this challenge, Uganda has a unique opportunity to emerge stronger by utilizing the pause as a catalyst for positive transformation. Through the recalibration of project management practices, fostering transparency, and ensuring alignment with the principles set forth by the World Bank, Uganda can not only regain the funding that was temporarily halted but also construct a more robust and resilient development framework. This endeavor will not only enhance Uganda’s capacity for growth but also contribute to its long-term success and prosperity. This Table shows the ongoing projects where funding has been halted due to this decision by the World Bank PROJECT NAME COMMITMENT AMOUNT