Museveni Chides Western Donors for Aid Freeze But Opens Door to their Return

President Museveni has declared Uganda’s readiness to re-engage with Western powers, months after facing sanctions over the country’s controversial anti-homosexuality law.

Speaking at a leadership forum at Munyonyo about recently, Mr Museveni revisited the fallout from the 2023 passage of the Anti-Homosexuality Act, which saw Uganda removed from the US African Growth and Opportunity Act (AGOA) and suspended from World Bank lending.

“We passed a law that was discouraging homosexuality. Mr Biden removed us from the AGOA list, the World Bank stopped giving us loans—but our economy grew by 6 percent,” Museveni said.

“Now they have come back saying we are good people. So we also say they are most welcome!”

The remarks reaffirmed Uganda’s pursuit of economic sovereignty, particularly through value addition in agriculture and minerals.

He dismissed reliance on raw exports as “exporting jobs,” and pointed to strong growth indicators as evidence that Uganda can thrive even when shunned by major Western institutions.

Following the enactment of Uganda’s Anti-Homosexuality Act (AHA) in 2023, the World Bank announced a suspension of new public financing to the country, citing concerns over human rights and non-discrimination.

The decision effectively froze pipeline funding and sent a strong signal to other development partners, several of whom followed suit.

Major bilateral donors, including the United States and some European countries, either paused aid or redirected support away from government channels, arguing that the law contravened international commitments to protect minority rights.

Several leaders, including Speaker of Parliament Anita Among, were also sanctioned by the UK and US governments.

Ms Among insisted she was being punished for her role in shepherding the legislation through Parliament.

Ms Among, a vocal supporter of the law, dismissed the sanctions as foreign interference in Uganda’s sovereign legislative process.

“I will not bow to bum shafters,” she declared defiantly, vowing to stand firm in what she described as a moral and cultural defence against Western influence.

Her comments underscored the growing friction between Uganda’s political leadership and Western governments over the balance between national values and global human rights norms.

The Nile Post could not readily establish if the World Bank and other Western donors have reopened engagements with Kampala but in February, US Congressman Andy Barr criticised the Biden administration’s sanctions during a House Foreign Affairs Committee hearing.

Barr warned that isolating Uganda over its domestic laws weakens US influence and risks strengthening geopolitical rivals like China, which has invested heavily in Uganda’s oil infrastructure.

“Uganda is a key ally in counterterrorism. These actions only push them further toward China and other actors,” Barr argued, questioning the use of US aid to advance what he described as “social agendas” in Uganda.

Despite lingering tensions, Museveni signalled an openness to work with all international partners—provided they respect Uganda’s values and priorities.

“We’re open to cooperation, but it must be on terms that respect our sovereignty,” he affirmed.

Following the enactment of Uganda’s Anti-Homosexuality Act (AHA) in 2023, the World Bank announced a suspension of new public financing to the country, citing concerns over human rights and non-discrimination.